Sanlam has written down its investment in healthcare management group AfroCentric to nil after medical scheme Bonitas moved to end its relationship. Yet, the insurer insists there is still value to extract. The stake will stay. Sanlam CEO Paul Hanratty ruled out any sale. Sanlam owns 60% of AfroCentric, a holding it took three years ago and which has so…
Tag: Bonitas
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Bonitas Tender Dispute Puts Scheme Governance Under Spotlight
The Bonitas Tender Dispute has placed fresh scrutiny on major operational changes at South Africa’s second-largest open medical scheme. The legal matter between Medscheme and Bonitas Medical Scheme was expected to be heard this week. It has now been postponed again. At the centre of the case are four tenders. These shifted key Bonitas functions away from Medscheme and other…
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Momentum Bonitas Deal Lifts Market Share To 30%
The Momentum Bonitas deal is set to reshape South Africa’s tightly concentrated medical scheme administration market. This follows Momentum Health winning the tender to administer the Bonitas Medical Fund. The transfer takes effect on 1 June 2026. It is being positioned by Momentum as a springboard for further growth in a sector dominated by a handful of large players. Momentum’s…
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Bonitas Tender Dispute: Court Action and Tender Controversy
South Africa’s second-largest open medical scheme, Bonitas, is opposing an urgent court application by Medscheme to block the appointment of two new service providers. The Bonitas Tender Dispute centres on Bonitas’ decision to end a 44-year administration relationship with Medscheme. Medscheme has served as its administrator since 1982. Bonitas, which covers more than 730,000 people, has appointed Momentum to take…
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Bonitas Medscheme Split Sees Momentum and PHA Win Contracts
The Bonitas Medscheme Split has become a major topic in the South African healthcare sector. Bonitas Medical Fund, South Africa’s second-largest open medical scheme, has confirmed a major supplier shake-up. It will end its long-running administration relationship with Medscheme and hand key roles to Momentum Health and Private Health Administrators (PHA). The changes cover all Bonitas options except Boncap, its…
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Medscheme Bonitas Legal Battle Over RFPs Escalates Amid Probe
A critical legal dispute is unfolding in South Africa’s private healthcare sector. Medscheme has filed an urgent application with the Johannesburg High Court to suspend or terminate several Requests for Proposals (RFPs) issued by Bonitas Medical Fund. Furthermore, the dispute signals deepening tensions between long-standing partners in the administration of the country’s second-largest open medical scheme. Medscheme Bonitas Legal Battle…
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AfroCentric’s JSE Collapse Fuels a New Healthcare Empire
As insurance giant Sanlam tightens its grip on health-fin services specialist AfroCentric, the line between public company and private control has all but vanished. What remains is a powerful lesson in strategic patience. It reveals how corporations (or businesses) can methodically turn market neglect into a corporate opportunity. While AfroCentric still technically trades on the JSE, its story is no…
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Bonitas Faces Investigation for Procurement Irregularities
The Council for Medical Schemes (CMS) has officially launched a forensic investigation into Bonitas, the nation’s second-largest open medical scheme. Bonitas faces investigation over allegations of improper procurement processes related to a key contract for its low-income option. The investigation will focus specifically on a contract awarded by Bonitas to Private Health Administrators (PHA) for the administration of its Boncap…
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Medical Aid Contribution Increases Squeeze Household Budgets
South African households are bracing for another year of financial pressure as major medical schemes begin announcing their contribution increases and benefit changes for 2026. In a familiar and unwelcome trend, the announced premium hikes are set to outpace the country’s general inflation rate significantly. This will deepen the long-standing healthcare affordability crisis. While the Council for Medical Schemes (CMS)…
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CMS responds to Bonitas corruption allegations
The Council for Medical Schemes (CMS) has responded to Michael Avery’s recent column titled “Anatomy of a scandal: Bonitas said to have lost Sanlam’s trust” (October 14), which questioned the regulatory body’s oversight and raised concerns about long-standing contracts in the medical scheme industry. Avery’s article insinuated that the CMS has been passive as a regulator. However, the CMS pointed…
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Younger South Africans turning to medical insurance
Medical schemes in South Africa operate on a community-rated system, offering open enrollment where members pay the same contributions regardless of their health status or age. According to the Council for Medical Schemes (CMS) 2023/24 annual report, about nine million people belong to 71 registered medical schemes. However, younger South Africans are increasingly turning to medical insurance, which offers lower…