SHARES in Discovery added 5,66% to R22,40 after a trading statement from the group indicated an improved performance in the second half of its financial year. While it expected only a marginal change in headline earnings a share for the year to June, it reported a 17% fall in headline earnings a share to 28,2c for the six months to December. Earnings a share for the year were expected to be 0%-20% higher, it said. However, stripping out the effect of last year's empowerment deal, headline earnings and earnings a share would be 20%-40% higher. A year ago, the group sold 7% of its business to empowerment partners in a transaction worth R830m. The deal distorts Discovery's results due to its treatment under International Financial Reporting Standards. No further details were given in the trading statement. However, the market will be watching for a turnaround at US arm Destiny Health, which has battled to break into profitability. Destiny reported an operating loss of R80m in the six months to December, up from a R41m loss the previous year. CEO Adrian Gore said steps had been taken to address the challenges Destiny faced in the US, including stiff competition and the slower-than-expected rollout of its business. As part of its plan of action, Discovery said last month that Destiny was closing for new business in Massachusetts, where it operates in a joint venture with Tufts Health Plan. Destiny operates in a joint venture with Guardian Life Insurance in a number of other US states.

THE Government Employees Medical Scheme (GEMS), a registered medical scheme specifically for public service employees launched in January 2006, has experienced phenomenal growth, with 300 new members joining per day over the past month. GEMS' Principal Officer, Dr Eugene Watson, says that membership now stands at 20 000 families or 50 000 individuals, forty percent of which had previously not had medical cover, with the sixty other percent having "voted with their feet", moving from other medical schemes. He said that he was excited to see the upsurge in confidence by government employees, adding that GEMS had not only grown substantially, but had shown an increasing daily growth rate for more than 200 consecutive days. He said that members liked what the scheme had to offer, no frills, value for money and, more importantly, real savings.
Watson attributed this growth to the comprehensive rollout of the scheme's communications plan and member enrolment initiatives, as well as growing awareness of the new 75 percent subsidy for government employees. Those who earn more than R60 000 a year receive a 75 percent subsidy up to a maximum of R1 900 a month for a family of 5 on GEMS. Civil servants who are already members of open medical schemes continue to get a subsidy of up to R1 014 a month. A further measure to promote access to GEMS for all employees includes the 100 percent subsidy for which employees earning below R60 000 and joining GEMS' Sapphire option are eligible. Watson said that there are about 325 000 employees in the public sector who earn less than R60 000 a year. Of those, an estimated 200 000 do not currently have any kind of medical scheme cover.

MEDICAL doctors are no longer leaving Gauteng in great numbers, according to MEC for Health Brian Hlongwa.

THE health sector charter on black economic empowerment (BEE) has come a long way since Health Minister Manto Tshabalala-Msimang released a draft last year calling for 51% of private healthcare assets to be in black hands by 2014.

THE private hospital industry's efforts to bring hospital inflation to within the Reserve Bank's target range of 3%-6% have paid off.

According to a study by independent economist Mike Schüssler, commissioned by the Hospital Association of S A (Hasa), the industry achieved an inflation rate of 5,2% for the 2005 financial year.

Dr Maurice Goodman: The Citizen, 20 February 2006

The following is a letter to THE CITIZEN from Discovery Health's Dr Maurice Goodman explaining the medical schemes position on early-stage breast cancer treatment with the drug Herceptin:

Edwin Naidu: The Sunday Independent & The National Treasury, 19 February 2006

WHILE many rejoiced over the personal income tax relief announced by Trevor Manuel, the finance minister, landmines lie in wait for many taxpayers from March 1: they will have to pay more for medical aid contributions.

By Neesa Moodley/ Business Report

Durban - The Nursing Bill, which will be implemented later this year, may result in nurses who have not worked in South Africa for more than three years being struck off the register.

Tamar Kahn
Science and Health Editor, Business Day 6 January 2006

CAPE TOWN — Early signs are that the new Government Employees Medical Scheme (Gems) has elicited strong interest from public servants considering joining up, says the scheme’s principal officer, Eugene Watson.

The Board of Healthcare Funders (BHF) is delighted to announce that Dr Humphrey Zokufa will be assuming the position of Chief Executive Officer from 15 November 2005.