The Protector Group, launched this year, is a health maintenance organisation (HMO). It has a medical aid scheme with 30 000 principal members, a fund administrator, health-care facilities such as hospitals and clinics, distribution channels through major institutions and a "super modern" IT system pulling it all together.
Ironically, recent turmoil in the healthcare industry is a reason for management`s optimism bout the group`s future. "There is a great business opportunity for us," says financial director Marc Seelenbinder.
The group was established through the acquisition of the administration capability and the medical facilities of the soon-to-be amalgamated Vaalmed and Kopano Healthcare medical schemes into the Protector Health medical scheme. Glenrand MIB is a 65% shareholder in Pretoria-based Protector Group Holdings, with the balance of the shares being held by management.
The group employs about 630 people. The medical scheme administration operations are housed in Protector Group Fund Managers, while the medical facilities, including hospitals, clinics and related services normally part of an HMO, are run by Protector Group Medical Services. The Business Development Services division has offices in SA`s main centres.
Seelenbinder says that through its unique integration of medical scheme administration and selective aspects of health-care delivery, Protector can offer a complete package, along with traditional and "new generation" commercial options.
Protector Health`s reserve level is better than 40%, making it one of the strongest medical schemes in SA.
Group CEO Leon van Rensburg says one of the biggest dangers in health care is unmanaged growth. "You have to make sure you provide the services along the way." A dedicated team of actuaries monitors the group`s performance at every stage, ensuring that growth is achieved in a controlled manner while reserve levels are kept intact.
Much store is placed on Protector`s state-of-the-art IT systems, designed and supported by leading IT companies. "The better the integration of systems, the cheaper the cost per transaction and the more cost-effective the group`s services become to medical schemes and its members," says Seelenbinder. "We have spent millions on IT, supported by Neil Harvey & Associates, IQ Health and AST, and we will continue to invest in our systems.
"In-house `switching` technology allows close co-ordination between the fund managers, medical facilities, client services, call centre and managed health-care operations. In addition, Web-based technology provides live access to the systems by members and service providers."
The group`s distinguishing feature is the value-added services it provides along with the various medical scheme options, with special focus on pro-active management for diseases such as asthma and diabetes, and mental-related illnesses.
"In areas such as the Vaal triangle we already offer benefits linked to our hospitals and clinics," says van Rensburg. "We are developing clinics into well ness centres where members can receive primary health care and treatment for diseases.
"Where we get sufficient members we will develop facilities so we can provide affordable care as well as cover."
The group expects that medical aid members will demand value-added services for their ever-increasing subscriptions. "Medical scheme costs are projected to become a significant portion of salary packages, so our product development strategy focuses on adding value in the care of our members instead of unrelated gimmicks," says Seelenbinder. "We believe members will again focus on traditional, uncomplicated medical aid products, simply for cost reasons."
Van Rensburg says Protector`s continuous investment in people, systems, and infrastructure and managed health-care positions it as a service-driven, caring organisation.
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