AfroCentric’s shares ballooned recently by as 11.5% yesterday after Medscheme, its medical aid administrator, won a managed care services contract for the Government Employees Medical Scheme (GEMS).
The healthcare group, which also owns medicines distributor Pharmacy Direct, drug manufacturer Activo and several other health related companies, said the tender for GEMS’ managed care services was issued in 2019 and Medscheme was awarded it for 5 years from 1 January. The new contract included additional services including HIV management, maternity management and expanded services relating to medicine management. Total annual revenue for all the services amounted to R630 million.
GEMS is SA’s largest closed scheme, representing 1.9 million lives and 750,000 principal workers.
Medscheme have again been the preferred incumbent for this part of the GEMS outsourced contracts which indicates the value our client is experiencing through clinical protocols, interventions and group wide thought leadership in managing medical scheme expenditure,” AfroCentric said.
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