While our long-term objectives remain unchanged – focused on broadening access to healthcare and enhancing value across the healthcare value chain – our strategic approach was refreshed during 2024 to better capitalise on emerging opportunities and deliver sustainable growth.
Our refreshed strategy is anchored in two key growth drivers:
- Building a winning health offering
- Driving clinical innovation
These are enabled by:
By setting ambitious targets for 2030, we aim to deliver long-term value through innovation, digital transformation, and a cohesive operating framework, directly contributing to SDG 3 and NDP Goal 8, prioritising access to high-quality, affordable healthcare for all South Africans.
Growth drivers
Building a winning health offering
As part of the Sanlam Group, we are uniquely positioned to deliver an integrated healthcare offering that aligns financial, wellness, and medical services. Launching a Sanlam-endorsed open scheme has been a key milestone in expanding access to quality healthcare solutions. We continue to explore opportunities with like-minded partners to expand our service offerings and strengthen healthcare access, ensuring a broader and more integrated healthcare experience.
We have strengthened partnerships and expanded access, with total lives under management exceeding 4 million, reinforcing our commitment to broadening healthcare access. We have made a step change in our partnership with Sanlam, achieving significant milestones and laying a strong foundation for future success. This collaboration has driven innovation in healthcare solutions, enhanced service offerings, and positioned us as a trusted healthcare partner.
Other key milestones included:- Introduced the Fedhealth and Sanlam product offering for 2025
- Onboarded Sanlam Staff Corporate scheme members, strengthening our role as a trusted healthcare administrator
- Launched the first version of the Health Rewards platform, aimed at improving member engagement and promoting wellness
- Created Sanlam Health Distribution, a dedicated unit to expand and streamline healthcare solutions
- Progressing towards a more integrated product offering, with enhanced benefits and an improved rewards programme
We remain committed to maintaining exceptional service across all managed schemes, as reflected in positive member feedback and recognition through multiple client service awards. Our efforts to enhance client experience continue to drive tangible improvements, ensuring we provide high-quality, cost-effective healthcare solutions.
See here for a detailed discussion on building a winning health offering.
Growth drivers
Driving clinical innovation
As a leading managed care organisation, clinical innovation will be a crucial differentiator. We aim to transform traditional care delivery into a value-based model, focusing on healthcare outcomes and exceptional experiences for scheme members and service providers. Leveraging our clinical expertise, Sanlam’s risk management capabilities, and key strategic partnerships, we are committed to placing our scheme members at the heart of everything we do.
We have expanded clinical initiatives while strategic investments in innovation continue to enhance member outcomes and cost efficiencies. In our mission to transform traditional care delivery into a value-based model, we launched the Orthocare Spinal Programme on 1 January 2025 for selected schemes. The programme is expected to reduce unnecessary spinal surgeries and interventions, with further expansion planned from 1 March 2025.
Other key milestones included:To strengthen our value-based care strategy, we have taken key steps to drive innovation in healthcare delivery:
- Appointed a Chief Health Commercial Officer to lead our value-based care strategy and commercial partnerships
- Established a dedicated value-based care Orthocare unit to advance specialised care and operationalise new opportunities
- Preparing to launch two value-based care pilot projects within the first half of the 2025 year, designed to test and scale new care models
As a leader in managed care, we remain focused on clinical innovation that enhances patient outcomes and ensures best-in-class care coordination. By leveraging a data-driven approach to monitor clinical and financial impacts, we continue to set the benchmark for excellence in managed care, delivering effective and sustainable treatment solutions.
See here for a detailed discussion on driving clinical innovation
Key enablers
Investing in data, digital and technology
We are committed to strengthening our leadership in healthcare by leveraging data-driven insights and adopting new technologies. By investing in data analytics, digital tools, and technology, we aim to improve operational efficiency and enhance the healthcare experience for our clients, empowering them with seamless digital solutions.
Increased IT and digital investments have strengthened our service delivery, supporting operational efficiencies and cost management. We have enhanced our digital capabilities, expanded data analytics and modernised our clinical systems to provide seamless digital solutions that improve service experiences for members. These innovations are key to supporting value-based care models and optimising service delivery.
Other key milestones included:- Completed major upgrades on core systems, improving processing times and enhancing the client experience
- Achieved significant efficiencies through collaboration with Sanlam, driving cost savings and improved productivity
- Finalised a new data organisation strategy, with high-impact digital initiatives focused on care coordination, disease management, and hospital benefit management
- Strengthened leadership with key appointments, including a Head of Enterprise Architecture and a Head of Digital Transformation, to drive ongoing innovation
Our continued focus on data-driven decision-making and digital transformation ensures we remain at the forefront of delivering efficient, high-quality healthcare solutions.
See here for a detailed discussion regarding our data, digital and technology investments.
Key enablers
Evolving our culture and operating model
A key enabler of our strategy is the evolution of our culture and operating model. We foster innovation, collaboration, and continuous learning, creating an inclusive environment that embraces diversity and maximises everyone’s potential. Our approach focuses on developing a cohesive, integrated operating model, leveraging the strengths of our diversified businesses. This enables us to unlock our core service and clinical innovation capabilities, delivering exceptional client experiences.
We have improved client engagement scores and received multiple industry awards, demonstrating our commitment to service excellence. A notable recognition this year was our certification as a Top Employer for 2025, reinforcing our dedication to fostering a workplace that promotes growth, innovation, and collaboration. Our employee engagement initiatives have created a more motivated and empowered workforce, enabling employees to deliver higher-quality service and enhancing client perceptions. At the same time, we have retained our Level 1 B-BBEE rating, reaffirming our commitment to transformation, inclusivity, and empowerment.
Other key milestones included:- Strengthened risk, compliance, and business integrity with the introduction of a Chief Risk Officer role
- Refocused our business around core service offerings, positioning Medscheme as the foundation of our healthcare solutions
- Initiated the transition to an Agile methodology, improving efficiency and accelerating the delivery of key projects
- Enhanced our employee value proposition while right-sizing businesses affected by contract losses to ensure long-term sustainability
By evolving our operating model, we are building a more agile, efficient, and customer-focused organisation well-positioned for long-term success.
See here for a detailed discussion on evolving our culture and operating model.
Outlook
We remain committed to driving sustainable growth and enhancing service excellence in 2025. Our focus for the year is on building long-term success as we advance towards our 2030 ambition, strengthening a cohesive and integrated operating model that leverages the strengths of our diversified businesses.
Our priorities for 2025 include:-
Partnership expansion:
Strengthening collaboration with Sanlam and Fedhealth to drive deeper engagement and long-term growth opportunities. We will continue to focus on key partnerships with schemes, intermediaries, and service providers to grow our networks and deliver a compelling, data- and digitally enabled healthcare proposition. -
Digital innovation:
Advancing digital solutions to support disease management, enhance patient outcomes, and improve operational efficiency. Our investment in technology will enhance service delivery, ensuring we proactively meet customer needs, provide exceptional client experiences, and operate as a digitally enabled business. -
People and culture development:
Implementing targeted initiatives to enhance employee value, foster cultural alignment, and support a high-performance environment. A core focus will be to prioritise employee well-being and engagement, ensuring our people remain motivated, empowered, and aligned with our strategic vision. -
Enhancing Group governance:
Aligning and strengthening all subsidiaries within the Group’s risk, compliance, and governance frameworks to ensure a consistent and effective approach. Building trust and demonstrating our commitment to positive healthcare outcomes will remain central to how we operate. -
Operating model evolution:
Refining our business focus by re-evaluating existing models, enhancing core operations, and deepening integration around Medscheme to optimise efficiencies and service delivery. Clinical innovation will be a key differentiator, focusing on transforming traditional care into value-based care and unlocking greater value in clinical managed care.
By delivering these priorities, we are setting our business on a new growth trajectory – one that prioritises innovation, operational excellence, and a lasting positive impact on the lives of those we serve.