Financial highlights
Medshield's financial performance in 2024 reflects its robust management practices and dedication to maintaining economic stability. The Scheme's total assets increased to R3.03bn, up from R2.96bn in 2023, showcasing its ability to grow and safeguard member funds.
The Scheme’s insurance revenue increased to R3.90bn (R3.69bn:2023), driven by effective member engagement and a suite of market-attractive benefit options. A pertinent highlight is that Medshield maintained an accumulated funds solvency ratio of 61.4%, well above the statutory requirement of 25%. It demonstrates the Scheme's ability to meet its obligations and ensure long-term stability and sustainability for its members.
Medshield achieved a 10% return on its investments, reflecting prudent financial management and a diversified portfolio strategy. Investments are spread across bonds, equities, and cash instruments, ensuring stability and growth.
For the 2024 year, the Scheme reported a profit of R9.8m before amounts attributable to future members.
Kevin Aron, Medshield’s Principal Officer, confirmed the Scheme’s commitment to its members: "We understand medical aid members want clear, simple, fast access to their benefits. They want to feel supported when they are unwell and before problems start. At Medshield, the interest of our members always remains our focus."
Operational excellence and commitment to members
Medshield's operational performance in 2024 reflects its commitment to delivering quality healthcare cover and value-added services while meeting the needs of its members. In a stagnant industry, Medshield experienced a 2.57% membership growth, and by year-end, the Scheme served 71,457 principal members and 138,798 beneficiaries across eleven benefit options, reaffirming its position as a trusted healthcare partner.
Medshield maintained its focus on affordability and value despite challenges, with market-related adjustments to contributions and improvements to benefits. Medshield is known for astute claims management with the interest of the member at the centre of the business.
"Medshield is committed to broader access to quality healthcare and the efficiency gained through its discounted options. MediPlus Compact and MediValue Compact continued offering cost-effective solutions, enabling members to access affordable healthcare without compromising quality," adds Aron.
Governance, compliance and corporate citizenship
The Medshield Board of Trustees remains committed to upholding the highest governance standards and complying with the Medical Schemes Act, and the Scheme remains committed to adhering to all applicable regulatory requirements.
"Medshield has made significant progress in implementing its ESG (environmental, social and governance) framework, aligning with the strategic business goal of being a good corporate citizen and contributing to the overall benefit of all South Africans," says Aron.
Commitment to member-centric growth
"The Scheme has introduced measures to improve member experience, including streamlined claims processing and enhanced benefit designs. These initiatives reflect Medshield's dedication to providing value-driven healthcare solutions," explains Aron.
Medshield's leadership remains focused on delivering excellent value to its members while navigating the evolving and often complex healthcare landscape. Ensuring equitable access and affordability remains a significant challenge in the complex healthcare landscape. “We also must ensure that members get the proper care and treatment at the best possible cost for the best health outcome. The signing of the National Health Insurance (NHI) Bill into law in May 2024 is not expected to impact the Scheme in the short to medium term, allowing Medshield to continue providing exceptional healthcare cover and related services,” adds Aron.
Looking ahead
The Scheme is well-positioned to build on its successes and address emerging challenges. The Medshield leadership identified key priorities to build on the Scheme's success to date and will continue to enhance the member experience through investment in technology and systems to streamline claims processing and service delivery.
"Members want more than just cover. They want easy access to support, whether online or in person, which helps them stay healthier longer. Medshield adapts to these changing needs by using innovative technology, enhancing day-to-day processes, and proactively addressing health issues before they escalate. It's about making healthcare work better for real people in real life," states Aron.
"Financial stability and future sustainability are amongst Medshield's key priorities. The Scheme will maintain and enhance prudent financial management practices to ensure long-term sustainability. Medshield Medical Scheme thanks its members, partners, and stakeholders for their continued trust and support. Together, we will continue to build a healthier and more sustainable future," concluded Aron.
