Hosmed Medical Scheme and Sizwe Medical Fund merger approved

The Council for Medical Schemes has given its stamp of approval to the merger of Hosmed Medical Scheme and Sizwe Medical Fund, creating South Africa’s eighth-largest open medical scheme, marking the beginning of a revolution in South Africa’s medical scheme industry. 

The merger brings together Sizwe’s 46 900 membership with Hosmed’s 21 000, according to these membership numbers, the merged entity becomes the 8^th largest medical scheme in the country with the fourth-highest solvency ratio of the top ten largest medical schemes.

“There are no words to describe the significance of the series of events and business decisions that have been crowned by the birth of the entity that is Sizwe Hosmed Medical Scheme,” says Dr Simon Mangcwatywa, Sizwe Hosmed’s Principal Executive Officer.  “We can all be proud to bear witness to the birth of Sizwe Hosmed, as it represents the collective (proverbial) blood, sweat and tears of a group of individuals with the tenacity to see through a shared vision to its fruition,” he added. 

A few developments in recent years have placed pressure on smaller medical funds, creating increasing pressure for consolidations; these include a review of the Prescribed Minimum Benefits package, the drive towards implementing a National Health Insurance, and an expected increase in claims in the wake of the COVID-19 pandemic. 

“This merger is mutually beneficial to both schemes, where the combined balance sheet and increased membership size can unlock efficiencies and economies of scale to the benefit of all members,” said Dr Simon Mangcwatywa.  “Sizwe Hosmed members will benefit through a reduction in non-healthcare expenses attributed to reduced operational scheme expenses.” 

Sizwe Hosmed Medical Scheme’s work force will continue to provide the excellent level of service and support that our members have come to expect. 

The history behind both brands allows for the engineering of a legacy in health insurance that the new entity, Sizwe Hosmed is braced to build, representing a collective 80 years – covering the South African public with a blanket of medical insurance products. “The creation of a legacy itself is akin to planting a tree – the shade of which we will all live to enjoy. This institution has the bones and structure to outlive the youngest of us and benefit the health and well-being of generations to come.”  

The members of the new scheme are critical to the success of Sizwe Hosmed: “We must also acknowledge the role of every member of the respective schemes, who have entrusted us with their health, and that of their families and loved ones for decades.  These members are relying on our collective ability to steer them through this transition, and it is our duty to ensure that we protect each one of them to ensure no member is left on the sidelines of this merger.”

Looking ahead to the future defined by the success of Sizwe Hosmed Medical Scheme, Dr Mangcwatywa said,” As we step into the new journey of this medical scheme, we must remember what lies at the base of our operations. We are working not for ourselves and our own benefit – but for the generations ahead of us; to ensure that this legacy tree will stand firmly rooted, offering safety and protection under the comfort of its shade.”