Bonitas Member Magazine B-Living - Issue 2 | Page 14

Hospital negotiations & the 30% co-payment Healthcare costs are consistently higher than inflation. In South Africa, these costs are not regulated, so it is pivotal for medical aid schemes to explore ways and means of decreasing costs on the supplier side, particularly with hospitals. As a result, in 2016, Bonitas commenced negotiations with the three largest hospital groups in South Africa, with a view of creating a network of Designated Service Providers (DSPs). A hospital network allows for Bonitas to negotiate preferential tariff s with participating hospitals, to help curtail the burden of escalating healthcare costs on our members. This follows one of the core strategic pillars of Bonitas – strategic purchasing – which uses the Fund’s market share to negotiate and influence prices. Page 13 B-Living Issue 2, 2017