27 October 2016
African Rainbow Capital (ARC), the new financial services vehicle launched in April this year and chaired by Patrice Motsepe, has today announced the establishment of a new investment company, ARC Health.
The company will focus on businesses dedicated to the reform and restructure of the private health industry within South Africa, whilst also working on initiatives to consolidate government healthcare spend, by focusing on the spend of legislated compensation for injury and related healthcare costs.
The founders of ARC Health are ARC under the leadership of former Sanlam executives, Johan van Zyl and Johan van der Merwe, and Dewald Dempers, former CEO of Afrocentric Investment Corporation Limited, the listed holding company of major medical scheme administrator, Medscheme.
Dr van Zyl says that “the current economic environment places individuals, corporates and the government under increasing pressure to find sustainable and affordable healthcare strategies and solutions”.
“ARC Health together with ARC’s capital, networks and status as a black owned financial services entity, combined with the professional healthcare skills and experience of the ARC Health team, will deliver on the ambition to create and build a prominent healthcare management enterprise in South Africa”, he said.
Dempers added: “The ARC Health team has a track record in constantly challenging historic and current healthcare business systems that result in inefficiencies in both the private and public healthcare sector, where ARC Health will focus its efforts. ARC Health will endeavour to create a platform to see opportunities and initiatives to redress healthcare spend and ultimately to reduce the cost of healthcare to ordinary citizens”, he said.
Motsepe is of the opinion that “in line with the Charter of the Private and Public Health Sectors of the Republic of South Africa, current business practices and pricing models need to be overhauled ensure the sustainability of the proposed National Health Insurance plan. ARC Health plans to be a serious catalyst and player in this space.”
ARC Health owns 5,6% of Afrocentric Investment Corporation Limited. A SENS announcement was published today to that effect.