Medihelp contracts MGX to provide total business continuity solution

Medihelp, one of SA`s largest private medical schemes, has contracted JSE Securities Exchange-listed MGX to provide a three-year, end-to-end, off-site disaster recovery and business continuity solution for its critical business processes.

Launched in 1905, Medihelp currently has reserves of R442 million, representing 31% of members` subscription income. The scheme has over 111 000 members and offers a range of benefit options.

It receives and processes claims on a daily basis, recovers subscription contributions from members, issues membership cards, and authorises certain hospital procedures.

"We already had an IT systems disaster recovery plan in place so it was logical to extend that plan to include and support the recovery and continuation of all our business processes," says Anton Rijnen, Medihelp CEO. "Our continued survival as a company depends on having a comprehensive business continuity plan in place. The nature of our business demands that the organisation must be able to conduct its operations regardless of circumstances or events."

He stresses that loss of data would be disastrous for the health scheme from an administration point of view. "It would also mean loss of income for the scheme and for the thousands of service providers whose claims must be processed and paid.

"Disaster recovery is an intrinsic element of our corporate governance policy in line with the King Report, which requires companies to have the appropriate risk programmes in place to safeguard critical business processes."

Rijnen confirms that Medihelp chose Business Continuity Solutions at MGX for its proven ability in providing complete business continuity solutions including consulting and standby services.

The scheme`s streamlined and prompt service to members and service providers is supported by sophisticated technology. This includes an electronic document management system that is integrated with a workflow solution, offering employees access to all documentation. Medihelp also has an integrated call centre to ensure efficient client service.

The company`s Web site offers members, contracted service providers and intermediaries access to relevant information and services 24-hours-a-day. This includes confirmation of membership, patient identification and registration for specific programmes - like chronic medication management programmes.

More than 70% of the claims processed by the scheme are received electronically: a high percentage in a traditionally paper-based industry.

Medihelp`s business continuity plan began with a risk analysis and business impact analysis study focusing on IT systems and infrastructure. Business Continuity Solutions at MGX used this information as the basis for the development of comprehensive disaster recovery and business continuity planning.

This included an IT continuity plan for the company`s mainframes and NT servers, the provision of an alternate site for Medihelp`s computer hardware and IT infrastructure, and regular testing of systems` recoverability.

The solution includes call centre and office recovery plans to guard against the disruption of any routine business processes. Business Continuity Solutions at MGX has dedicated 60 workstations and 50 call centre workstations at its Mega Centre in Midrand. Each workstation has a LAN-attached PC capable of multiple terminal emulations and a fully equipped desk with a telephone.

Says Jeanette McDougall, account manager, Business Continuity Solutions at MGX: "The solution includes appropriate, tested plans and provides Medihelp with a completely replicated environment. This is particularly important for a company that conducts so much of its business electronically, as it is exposed to greater risks which need to be mitigated. Any disruption to critical business processes can result in loss of credibility for the scheme."

McDougall defines disaster as any disruption to critical business processes which would potentially result in severe financial loss or an inability to achieve service levels. She notes that the solution ensures Medihelp is not financially exposed or impacted upon as a result of non-availability of business processes, and that total operations can be re-established in restored or replaced office accommodation. This, McDougall says, brings the scheme in line with established worldwide best practices.