magazine
e s s e n t i a l
...essentially your business
F E A T U R E
Netcare Cares www.netcare.co.za
Netcare Cares Netcare operates the largest private hospital network in South Africa.
S
outh Africa's healthcare system is divided along state and private lines. The private sector consumes 60% of total health spending yet caters to only about 20% of the population. Public healthcare struggles to meet the needs of the other 80% (some 42.5 million South Africans), with often overcrowded facilities, poor equipment and shortages of drugs. In 2012, Netcare, one of the country's major medical groups, entered into a ground-breaking social compact with the Department of Health and 22 other private healthcare companies, which recognised that neither the public nor private sector can individually or successfully confront the immense health challenges facing South Africa.
1
Health Minister Dr Aaron Motsoaledi called its formation “another important chapter in the history of our country.” “This partnership between government and the private health sector conveys a simple message that together we care about a long and healthy life for all South Africans,” he said. “It is a timely occasion that is clearly communicating the most pressing message on the minds of both policymakers and market participants that rebuilding confidence in the public health sector for the full successful implementation of the NHI system is of utmost importance for our country.”
magazine
e s s e n t i a l
netcare.co.za
www.netcare.co.za
Unfortunately “the pace of collaboration has been slow”, to quote Netcare's chairman Jerry Vilakazi, who says that “as the South African middle class expands, more people can self-fund healthcare,” alleviating the pressures on the public health system and helping to “release more of the public health resources required to enhance quality and access for those most in need.” CEO Richard Friedland believes Netcare has a “responsibility to advance the cause of universal access to quality healthcare” explaining that “the reality facing too many South Africans is limited access to even the most basic quality healthcare. We know that this is unacceptable and that we cannot build a successful and sustainable nation unless it is a healthy one.”
Netcare, which strives for “best-quality patient care” and treats “patients with utmost dignity and respect”, has 55 hospitals, 9,052 registered beds, 338 operating theatres and manage operating theatres and 87 retail and hospital pharmacies. Its wholly-owned subsidiary, Netcare 911, operates the largest private emergency medical service in the country with over 6.9 million insured lives and a fleet of over 180 response vehicles and ambulances, and three helicopter and two fixed-wing air ambulances. “Netcare 911 is widely acknowledged as a leader in the field of emergency medical services in South Africa,” Craig Grindell, chief operating officer of Netcare 911, said in a recent press release. The future for both - and its other divisions
2
that include the primary care division (Medicross)- is bright. “The demand for private healthcare within South Africa is expected to remain strong,” Netcare said, announcing its interim results, adding it “will continue work on improving occupancies, along with the focused expansion of Netcare's facilities and geographic footprint.” The group has committed to commission 379 beds in 2015 and two sizeable hospitals are currently under construction in South Africa, a 100-bed hospital in Pinehaven near Johannesburg, and a new 109-bed hospital in Polokwane. The cost of building the new hospital in Polowane is estimated at R540 million and would eventually be the first phase of a much bigger hospital, according to Netcare's Annual Integrated Report for 2013. “Netcare continues to evaluate growth opportunities and identify areas where we can expand our national footprint. We are commencing the construction of a 109bed hospital in Polokwane, Limpopo, and a 100-bed hospital in Pinehaven, Gauteng. Both hospitals are expected to be
“
magazine
e s s e n t i a l
This partnership between government and the private health sector conveys a simple message that together we care about a long and healthy life for all South Africans
commissioned in 2015. Construction work has started on the 254-bed Netcare Christiaan Barnard Memorial Hospital in Cape Town that will be relocated from its current premises to a custom-built, stateofthe- art new facility on the foreshore in 2016. We also continue to invest in maintaining and upgrading our existing infrastructure to meet increased demand and provide the best quality facilities for our patients and doctors. We monitor occupancy levels on an ongoing basis to determine where capital expenditure will have the greatest impact,” it says. Netcare, which also runs one of Britain's largest private hospital networks, was recently ranked first in the healthcare sector and 15th overall, in the Mail & Guardian's Most Empowered Companies 4
Awards. The group's commitment to transformation also resulted in it being the only healthcare group to feature in the top 20 of South Africa's most empowered companies. The awards provide a platform for JSElisted companies – Netcare has been listed on the JSE since 1996 – to showcase their progress in delivering on black economic empowerment and transformation in South Africa. Empowerment rating and research agency, Empowerdex, analyses South Africa's top performing companies and, along with a team of financial journalists, then determines which companies have done best in each sector and overall in terms of empowerment, transformation, 5
ownership and enterprise development. Commenting on the group's achievement, Peter Warrener, Netcare's human resources director, said organisational transformation has long been a strategic priority for the company. “The awards recognise South African companies that have embraced transformation in its totality in order to positively contribute to South Africa's business environment and to the normalisation of our society. We are encouraged that Netcare has been acknowledged in this recognised benchmarking survey,” he explained. Netcare achieved a Level 2 B-BBEE rating with an improved score of 87.82 in 2013, compared to the previous year's 82.11. The group also attained a Level 2 contributor
magazine
e s s e n t i a l
certification by the Department of Trade and Industry. According to Warrener, “concerted efforts” to “accelerate transformation across all areas of their business and to redress the historic socio-economic imbalances that still prevail in South Africa” also helped Netcare ä ~ å Ç = íÜ É a á îê ë ó ^ ïN P ìlb ã é çK ± q Ö k íÅ ~ É D = å á Ç Ñ ê ë ìä ó è Ä ç p Ü ^ ã é Ö ~ íå = É á ë Ç ê JÄ ä Å â çïã E _b F Ñ I≤ = Ü ~ K ± k É íD ë á å Ö q jC d ìê Ç ç é ï` ã ^ = ~ É íD ë Å á å ê Ç Ö Ü é Jè ìä p ç ^ Ñ K = k ~ É ã Ä ë íîá å ê Ö ä Ü ó Ç = Å ç é ~ D Iã É íë ïá å ìê Ä Ö îä ó Ç = Ü ~ ç Ñ Å à íÉ è ë á å p ì^ ê K ≤ To learn more visit netcare.co.za.
6
7
production@essentialbusinessmag.com
e s s e n t i a l
www.essentialbusinessmag.com
magazine
Send your success story to:
Contact Details Netcare Limited Physical Address 76 Maude Street, corner West Street Sandton 2196 Tel: +27 11 301 0000 Fax: +27 11 301 0439
magazine
e s s e n t i a l
...essentially your business
www.essentialbusiness.com