Wrap Text
Netcare - A R1 Billion Netcare Initiative In Support Of Broad-Based Empowerment
and Cautionary Announcement
NETWORK HEALTHCARE HOLDINGS LIMITED
("Netcare")
(Co. Reg. No. 1996/008242/06)
Code: NTC
ISIN number: ZAE000011953
"HEALTH PARTNERS FOR LIFE"
A R1 BILLION NETCARE INITIATIVE IN SUPPORT OF BROAD-BASED EMPOWERMENT
INTRODUCTION
The Board of Directors of Netcare is proud to announce its proposed Black
Empowerment ownership transaction which will result in the acquisition of 10% of
Netcare"s equity, valued at approximately R1 billion, by broad-based Empowerment
Groupings.
Netcare is committed to transforming healthcare, addressing inequalities and
mobilising the potential of all South Africans with the objective of
contributing towards sustained economic growth, development and social
transformation in South Africa.
A positive and proactive response from the private healthcare sector through the
implementation of meaningful transformation will unlock the sector"s potential
and enhance its growth, and more importantly will ensure BETTER CARE TO MORE
PEOPLE.
- This announcement serves to;
- Reinforce Netcare"s commitment to transformation;
- Confirm the initial transformation targets agreed to by the Board of
Directors; and
- Set out the salient features and initial phases of Netcare"s proposed broad
based Black Empowerment ownership transaction, targeted for implementation
by 1 October 2005.
NETCARE"S COMMITMENT TO TRANSFORMATION IN HEALTHCARE
Netcare, and many other corporates in South Africa"s young and successful
democracy, have made meaningful strides in the area of transformation. Since
1996, when Netcare was formally constituted, it has clearly demonstrated its
commitment to provide accessible and affordable quality healthcare through its
world-class infrastructure of medical facilities, professionals and technology.
In this regard, the following key areas describe parameters already in place
which have been endorsed by the Group Transformation committee and approved by
the Board of Directors:
- Achieve a meaningful change in the racial and gender composition of
ownership, control and management;
- Address skills development in a manner that accelerates the advancement of
historically disadvantaged individuals (HDIs) with a particular focus on
Black Women;
- Enhance enterprise development and the sustainable growth of BEE companies
and Black-owned SMME"s and thereby increase the employment potential within
the sector;
- Increase the procurement of goods and services from BEE companies;
- Improve equity in access to quality healthcare services;
- Encourage adherence to triple bottom-line (financial, social/ethical and
environmental) accountability, fair labour practices and principles of good
corporate governance;
- Strengthen the foundations for true public and private partnerships (PPPs)
based on trust with open and transparent dialogue; and
- Balance and align the needs of Netcare"s Patients, Doctors, Stakeholders
and Communities within the South African healthcare system with the Groups"
Corporate and Shareholder responsibilities.
1. OWNERSHIP
Netcare"s Achievements to Date
Netcare"s founding model contemplated the early admission of shareholders
reflective of the new South Africa. It was one of the first companies to
formally introduce BEE equity participation as early as 1997 (following its
listing in December 1996) with the investment arm of COSATU, Kopano Ke Matla
Investment Company (KKM), and a Group of 3 000 Black Doctors of the South
African Medical and Dental Practitioners Association (SAMDP) acquiring 17% of
Netcare"s share capital at that time.
Apart from Netcare"s pro-active promotion of Empowerment and Transformation,
previously disadvantaged communities and several broad-based BEE and community
institutions currently control, either directly or indirectly, approximately 19%
of Netcare"s issued share capital, including the Public Investment Corporation
(PIC).
The company also has a staff share option scheme, the majority of scheme members
being from historically disadvantaged communities (HDCs).
In addition, on 15 November 2004, Netpartner Investments Limited (Netpartner),
an entity in which Netcare has a 48% shareholding, announced the introduction of
the SAMDP into the organisation through an equity investment as well as Board
and Management representation. This transaction resulted in approximately 3 000
SAMDP-affiliated healthcare providers from HDCs becoming purposefully involved
in the future strategy of Netpartner, thereby placing it in a meaningful
position within the South African healthcare market. Furthermore, the
transaction increased the number of healthcare professionals as shareholders in
Netpartner to more than 10 500, of which almost 40% (approximately 4 800) are
HDIs, with the direct and indirect BEE shareholding in Netpartner currently
exceeding 30%. Today, Netpartner is the single largest shareholder in Netcare at
just over 17%, with an intention to increase this holding to between 20% and
25%.
Netcare"s Commitment
The aim is to achieve a further increase in the racial and gender composition of
empowerment ownership. Netcare is committed to achieving sustainable Black
ownership of more than 25%.
Netcare"s success is due primarily to the dedicated support of its Doctors,
Nurses and Staff, the majority of whom are HDIs.
NETCARE"S "HEALTH PARTNERS FOR LIFE" INITIATIVE
Netcare has always been a health partner for life, dedicated to touching the
lives of everyday people at every level, in every way.
Since its inception, Netcare has embraced the principles of Black economic
empowerment.
Today, Netcare is proud to formalise this commitment with the finalisation of
the Group"s Broad-Based Black Economic Empowerment (BBBEE) transaction which
entails the facilitation of an investment by a broad grouping of HDIs in 10% of
Netcare"s equity valued at approximately R 1 billion. Importantly, this
grouping will be newly constituted so as to empower people in the most extensive
sense.
The Board of Directors of Netcare is pleased to announce that it has approved
the following principal terms of its broad-based empowerment transaction and
intends to actively engage with stakeholders in a transparent process with a
view to finalising the transaction in a manner consistent with BEE objectives
and Netcare"s commitment to transformation of the South African private
healthcare industry while being sensitive to the interests of all its
stakeholders.
This transaction reflects Netcare"s corporate values of honesty, integrity and
trust and the Group"s ongoing commitment to provide a better life for more South
Africans while enabling a broad grouping of HDI healthcare industry participants
to be party to share in the growth and future value creation of the
organisation.
Nature of the Participants
Based on the Group"s strategies, objectives and value disciplines, it is
envisaged that the participants will include, inter alia, the following Groups:
a. The Mother & Child Trust (MCT)
Our Children / Our Future
The children are our future, nurtured by the exceptional Women of our Nation.
In the interests of ensuring a solid future with the participation of the future
leaders, the benefactors of the MCT will include Womens Group"s and Childrens
Organisations such that the value and beneficial interest to this Trust will be
shared by those people upon whom our futures so largely depend. It is
anticipated that the value arising from this Trust is likely to benefit more
than 10 000 participants.
In addition, with the growing daily needs for quality healthcare by mothers and
children, there is an overwhelming desire to share with them the resources of
our Group. The trustees will have as their mandate the discretionary allocation
to selected Womens Groups and Childrens Organisations in need of healthcare
assistance.
In his State of the Nation Address on 24 May 1994, the father of our Nation,
Former President Nelson Mandela, recognised the Governments responsibility to
give all children under the age of six and pregnant woman free medical care.
b. The Healthy Lifestyle Trust (HLT)
Our Body - SPORT/WELLNESS
To create a better life, the HLT will promote a healthy lifestyle through
Wellness Programmes and selected National Screening initiatives. These will
focus on epidemiological diseases which are showing an increase in rural Black
communities. Mobile clinics will ensure that people who have little or no access
to healthcare are reached.
The philosophy of a healthy mind and body is best facilitated through the
support of Sports in South Africa. The Trustees of the HLT will select certain
Sporting Bodies to focus on development and growth to 2010 and beyond.
"The announcement that we have won the 2010 Soccer World Cup bid fills every
citizen of this country with the pride of being South African."
President Thabo Mbeki (15 May 2004)
c. The Patient Care Trust (PCT)
Our Hearts - OUR NURSES & CARE GIVERS
Central to Netcare"s philosophy is the concept of "Best and Safest Patient
Care", with the key contributors to this objective being the nursing
professionals and care givers who give so unselfishly of themselves every day to
strangers, with little or no recognition. Nursing is increasingly a profession
of scarce resources, yet provides such an integral and valuable service to
patients in need. This Trust will be formed primarily for the approximately 8
700 employees within the Netcare Group that make up the greater portion of the
nursing fraternity, paramedics and other care givers.
"Nursing is an art, the art of caring, when you see beyond the skin colour,
religion, culture and gender ...to the human being." Anon (2000)
d. The Passionate People Trust (NPT)
Our Excellence - OUR MANAGEMENT & STAFF
In line with the Groups" leadership strategy of "Growing with Passionate People"
and "Operational Excellence", and in the interests of ensuring a quality
healthcare support infrastructure and business model to guarantee a sustainable
and meaningful economic and social balance of world-class healthcare delivery,
the NPT will have as its beneficiaries more than 9 200 management and staff of
Netcare. HDI staff will receive a favoured allocation but it is the intention to
ensure that each staff member, regardless of race, colour or creed, be assigned
some shares in recognition of their involvement in the Netcare family and their
contribution to society.
"Let"s build our people, recognise their efforts and give them the skills and
self-confidence to have an opportunity at winning in an atmosphere of
excitement, reward, celebration and fun." Dr Jack Shevel (1999)
e. The Physician Partnerships Trust (PPT)
Our Skills - DOCTORS
Essential to the delivery of quality healthcare to all South Africans are the
healthcare professionals whose skilled and valuable contribution to the everyday
health of our society is pivotal to the future growth and investment in our
country.
Given the significant daily responsibilities, long working hours and the
challenges they face in the complex medical environment, the beneficiaries of
this Trust will be predominantly HDIs from Netcare, Netpartner, the public
sector, private sector and medical schools, with favourable allocations being
given to recognise those Doctors who have supported Netcare over the years, as
well as those working in areas where the need for quality medical treatment is
more urgent.
In addition, certain Educational bodies will participate, so as to ensure that
the future South African medical graduates rank amongst the best in the world.
It is anticipated that these beneficiaries will be more than 21 000 in number.
"South Africa"s Doctors are regarded as amongst the very best that the World has
to offer and are a national asset that should be cherished!"
Prof. Barry Kistnasamy, Chairman Netpartner (2004)
Indicative allocation of 10% shareholding
The following represents the indicative allocation of the equity to the various
beneficial participants:
Name of trust Key benefactors Share of 10% Approx.
Value
The Mother & Child Trust Children & Women 7,5 R75m
The Healthy Lifestyle Sport & Wellness 5,0 R50m
Trust
The Patient Care Trust Nurses & Care 37,5 R375m
Givers
The Passionate People Management & Staff 20,5 R200m
Trust
The Physician Partnerships Doctors 30,0 R300m
Trust
Nature of the transaction
Cognisant of the various Codes, Charters and nature of the past BEE
transactions, the Group has undertaken extensive research with the assistance of
corporate advisers. The Board has identified the following key tenets that it
believes are imperative to the contemplated "Health Partners for Life"
transaction:
1. Credible and transparent BBBEE participation which will be strategic to the
growth of Netcare;
2. A funding structure that is sustainable irrespective of equity market
conditions and interest rate fluctuations;
3. Ensure that the BBBEE partners will have voting rights and economic benefits
from inception;
4. Minimise the cost and dilution for existing shareholders;
5. Comply with the ownership requirements of the draft Codes of Good Practice on
BBBEE and the imminent Healthcare Industry Charter;
6. Flexible structure that rewards participants for value creation; and
7. Vesting and lock-up periods to ensure sustainable BBBEE participation thus
ensuring the retention of scarce resources and allow for meaningful value
creation and transformation.
A structure designed to achieve these principles will be communicated to
shareholders and implemented shortly in accordance with the indicative timetable
below:
Process and indicative timetable (subject to change)
Event Targeted completion date
1 Finalise structure 31 May 2005
2 Consult with stakeholders on final 15 June 2005
transaction form
3 Obtain Board approval for final 30 June 2005
structure
4 Obtain JSE approval for terms 30 June 2005
announcement
5 Publish terms announcement 01 July 2005
6 Drafting of documentation 31 August 2005
7 Obtain shareholder approval 30 September 2005
8 Effective date 01 October 2005
Financial & Accounting effects
It is currently envisaged that the impact on shareholders in terms of earnings
and net asset value per share is unlikely to be materially different to
transactions of a similar nature currently being implemented in South Africa.
These matters will be specifically addressed in a further announcement to be
published on the JSE Securities Exchange News Service (SENS) and in the press in
due course.
If successfully concluded, the transaction may have a material effect on the
price of the company"s shares. Accordingly, shareholders are advised to exercise
caution when dealing in such shares until a further announcement is made.
FURTHER BEE OWNERSHIP
It is envisaged that future PPPs will be negotiated at Provincial Government and
Municipal levels and it is the intention to include local BEE partners
separately in these projects. This will further enhance HDI ownership as well as
facilitate meaningful enterprise development.
2. CONTROL
Netcare has deliberately embraced a gender empowerment strategy that aims to
develop Women and increase their representation, particularly at senior levels,
within the organisation. The success of this initiative is already reflected in
the fact that Women constitute in excess of 83% of the total workforce and 74%
of the management personnel throughout the Netcare Group.
The current Board of Netcare includes two Black directors and one White woman
director. Further to the announcement made on 16 November 2004, and in
subscribing to the highest levels of corporate governance tenets and values as
well as complying with the recommendations contained in the code of Corporate
Practices and Conduct as set out in the second King Report on Corporate
Governance, Netcare is implementing a new board structure that will further
change the composition of the Board before the end of 2005.
Netcare therefore is committed to achieving the following minimum targets at the
holding company level:
33% of Black people (20% thereof Women) at executive board level by 2008; and
40% Black people (20% thereof Women) at non-executive board level by 2010.
3. MANAGEMENT
The number of Blacks and Women in Senior and Executive Management will be
increased through talent identification, training and coaching. Individuals
promoted from within the organisation will receive all the support to ensure
success in this regard. In addition, Netcare has developed and implemented a
Talent Management strategy.
In addition to the directors on the Netcare Board mentioned herein, the Group
has a Black group marketing director and two White Women directors on the
Management Board.
Netcare"s commitment is to:
- Promote a non-racial, non-sexist environment and to enhance cultural
diversity and gender sensitivity within the sector; and
- Comply with the Employment Equity Act and to this end produce a
comprehensive employment equity plan.
In addition to obligations in terms of the Employment Equity Act, specific
minimum targets have been identified as follows:
- 20% of Black people (25% thereof Women) in executive management by 2008;
- Senior and Middle Management: 30% Black People (+50% thereof Women); and
- Junior Management: +50% of Black People (+50% thereof Women)
4. SKILLS DEVELOPMENT
Netcare contributes significant sums on an annual basis (2004 financial year
>R65 million) towards the training of nurses. In 2004, more than 2 000 new
nurses enrolled in the Netcare Training Academy.
Furthermore, an active Skills Development Programme is in place and the success
of this programme is evidenced by the regular promotions which take place.
Netcare"s commitment:
- Increase the level of staff retention through comprehensive structured
workplace training, career path development, proper guidance and effective
succession planning;
- Implement measurable mentorship programmes, linked to succession plans, and
a high rate of upward mobility;
- Establish structured interaction between the healthcare sector and tertiary
institutions to foster appropriate skills transfer;
- Spend 2,5% of payroll, over and above the skills development levy, on
direct training costs on staff in general, of which 60% must be on Black
staff in general and 55% of that on Black Women;
- Develop Black youth, through learnerships and the granting of bursaries,
with specific reference to the development of specialised skills; and
- Comply with the Skills Development Act and include proof of submission of a
work place skills plan and implementation report in Netcare"s Annual
report.
Netcare"s Achievements to date:
Selection for Learnerships has achieved:
- 73% Black; 94% Women and 100% Black in terms of Adult Based Education and
Training (ABET).
In the Netcare 911 School of Emergency and Critical Care (SECC) the following
milestones have been achieved:
- 911 Netcare staff: 44% Black and 42% Women
- Non-Netcare 911 staff: 71% Black and 27% Women
In addition hereto, the SECC is working with two Provinces to increase the
number of paramedics and therefore quality of Emergency Medical Care.
In so far as Pharmacists undergoing their training in the Group are concerned:
Pharmacy Interns - 36% are Black and 86% are Women
Pharmacy Assistants - 55% are Black and 73% are Women
The training of Clinical Engineers is being prioritised. The implementation of
the Training Outside of Professional Practice programme in order to train future
financial managers through a three-year training programme for employees in
finance to qualify as Chartered Accountants is being pursued. In addition, the
Group is proceeding with initiatives to market the nursing profession as a
caring and rewarding profession and to reposition the nursing profession, making
it attractive again and thereby establishing it as a formidable and much needed
employment avenue.
The Group"s ongoing investment in nursing education together with the historical
reinvestment of 75% of Netcare"s annual profits in technology and infrastructure
have contributed to maintaining the high standards of private healthcare in
South Africa, a National asset which enjoys international recognition.
NETCARE"S COMMITMENT
Netcare plans to achieve 75% HDI students in learnerships, maintain 100% Black
ABET learners and achieve a minimum of 50% Black and 50% Women in all the other
programmes by 2010.
5. EMPLOYMENT EQUITY (EE)
Netcare has developed and implemented an Employment Equity plan to ensure
representivity at all levels. A Black transformation manager has been appointed
to drive EE and Transformation. Netcare has already achieved representivity at
non-managerial levels. This level of staff is made up mainly of Nurses who are
by far mainly Women. The majority of Netcare staff overall are HDIs.
Notably, the company is regularly in discussions with DENOSA, HOSPERSA and
NEHAWU to progress employment equity and skills development programmes with
stated targets. The Group"s Transformation committee (which is headed by Dr
Victor Litlhakanyane, an Executive Director on the Netcare Board and former SG
of the Free State Department of Health) has set clear targets for Netcare"s
strategic positioning in the process of internal transformation.
In addition to the aforementioned, Netcare plans to achieve a target of 3,5% of
people with disabilities in the whole Group by 2010. Representivity in non-
managerial positions will match the South African demographics by 2010.
6. EQUITY OF ACCESS - BETTER CARE TO MORE PEOPLE
In Netcare"s quest to make quality healthcare more accessible, affordable and
sustainable for more South Africans, Netpartner, South Africa"s first fully
integrated Doctor-driven healthcare business, was formed last year. Numerous
other Doctor networks such as GPNet and the SAMDP have embraced the Netpartner
concept and have also joined Netpartner. During 2004, several contracts have
been concluded with leading administrators to make healthcare more affordable to
all South Africans, and Netcare is proud to have been able to take the lead in
this crucial development to ensure a better life for more South Africans.
The one element which clearly differentiates the evolving Healthcare Charter
from other industry sector charters is the emphasis on equity of access to
health services. The Honourable Health Minister has unequivocally indicated
that a central objective of the Charter and of Government healthcare policy is
to improve universal access to basic health services and to improve the quality
of care enjoyed by every South African. There is a consistent emphasis on the
promotion of greater equity in access to healthcare and the importance of
universal access to healthcare.
In terms of the Group"s commitment to improving equity in access, it is
Netcare"s firm view that this can best be achieved by sharing the valuable
resources currently within our country. Given the formidable intellectual
capital as well as "high-tech" facilities within the Private sector, a basis of
sharing these resources for the best patient care is what should be sought by
both the Public and Private sector participants. This would require that all
role players clearly communicate in order to formulate an appropriate regulatory
and transactional framework within which all parties can achieve their
objectives so as to ensure a sustainable investor-friendly healthcare
environment which prioritises the healthcare needs of the patients of South
Africa.
Netcare plans to promote equity of access to quality healthcare through the
following:
Facilitate the increased access to private care for a larger portion of the
population by developing more affordable services;
Assist in improving the quality of care delivered by the public sector;
Skills development to the benefit of the public and private sectors; and
Development of Public Private Partnerships.
7. PROCUREMENT
Despite the systemic and structural challenges in regard to procurement, each
company within the Netcare Group has undertaken to:
- Develop and implement targeted procurement policies, including, inter alia,
accessibility of tendering opportunities, early payment cycles and other
supply side interventions for SMMEs;
- Implement mechanisms to counter "fronting" and the abuse of targeting
arrangements;
- Measure suppliers in terms of their relevant sector charters (where these
exist), and in terms of the DTI scorecard where they do not;
- Target, where possible, Black SMMEs from local communities to enhance
benefits to these communities while at the same time ensuring that the
sustainability of existing Black enterprises is not hampered; and
- Substantially increase procurement from suppliers with relevant
accreditation in terms of the BBBEE Act.
To this end, the specific minimum level of 30% of total procurement from BEE-
accredited suppliers is targeted by 2010.
Netcare has developed its preferential procurement policies that will apply
across the Group. All suppliers are being registered and requested to provide
their BEE status.
8. ENTERPRISE DEVELOPMENT
Apart from the direct shareholding in Netcare, Netcare has also promoted
numerous partnerships with businesses owned by HDIs, a notable one being
Community Healthcare Holdings Limited (CHH), a 100% Black-owned healthcare
investment company with which Netcare has an interest in a Company owning seven
private hospitals in Gauteng, Free State and the Western Cape. Through these
initiatives Netcare has provided, inter alia, funding, the provision of
specialised services and skills transfer. To date, Netcare has shown its
commitment to the CHH hospital owning business venture by providing guarantees
to a value in excess of R160 million.
Netcare has identified and will support certain key strategic investments within
the healthcare sector through, inter alia, management support, transfer of
skills, equity participation, finance and / or the provision of guarantees. No
specific targets or parameters have been set by the Board but participation in
these initiatives will be governed by Netcare"s standard investment criteria, as
well as the support for businesses having promising intellectual capital,
commitment and vision consistent with that of the Netcare Group.
9. CORPORATE AND SOCIAL INVESTMENT (CSI)
The Netcare Group continues to invest significantly on an annual basis in a
number of corporate and social responsibility projects. This is evidenced by its
regular disclosures on these matters and its inclusion as one of the initial 51
companies which formed part of the JSE"s social responsibility index. In the
Group"s 2004 financial year, Netcare contributed more than R70 million to
corporate and social causes, particularly in respect of treating indigent
patients in need of quality care and emergency services. In this regard, Netcare
911 spent in excess of R54 million on emergency care for indigent patients;
Netcare hospitals provide emergency care to indigent patients; and the
Universities of Pretoria, Wits and Free State are beneficiaries of Netcare"s CSI
expenditure. In addition, the Netcare Chairman"s fund has provided funding to
various good causes, including, but not limited to, Netcare participating in the
2004 Cataract surgery programme ("Right to Sight") at no cost to the patients,
an initiative which was commended by our State President; the formation of the
Walter Sisulu Paediatric Cardiac Centre for Africa; the Children of Fire
programme; as well as regular support for the Children"s Haematology Oncology
Clinics (CHOC). Netcare was also involved in numerous disaster emergency
assistance initiatives in Iran, Turkey and Mozambique and more recently in the
evacuation of South Africans from Thailand following the tsunami disaster (for
which it received a commendation from the Minister of Foreign Affairs for its
efforts).
The focus of Netcare"s CSI strategy is on health services to indigent patients,
health science education at both undergraduate and post- graduate levels,
support to faculties of health sciences, community projects, wellness programmes
and sports development and is continuously seeking donor funds for meaningful
application. A comprehensive analysis of the Group"s CSI initiatives can be
found in Netcare"s Corporate Social Responsibility Report contained within the
2004 Annual Report.
THE NETCARE HEALTH TRUST
In consolidating the Group"s charitable and social endeavours, the Group is in
the process of formalising the Netcare Health Trust, a public benefit "not for
profit" organisation, which will have as its mandate the raising of donor
funding for efficient utilisation in the advancement of broad-based social
upliftment.
10. HIV & AIDS
Netcare has implemented a HIV workplace policy to manage its own employees
infected with HIV. HIVCare (Proprietary) Ltd (HIVCare), a subsidiary of Netcare,
offers preventative advice, diagnosis, treatment and counselling for people
living with HIV/AIDS.
HIVCare recently received funding from the United States President"s Emergency
Program for Aids Relief (PEPFAR) with the Free State Department of Health to
increase the number of people on treatment and intends to establish clinics to
increase access to antiretroviral therapy in partnership with Provincial health
departments. It is further intended that HIVCare will work with Government,
international funders and NGOs to increase treatment and care to people living
with HIV/AIDS.
11. PUBLIC PRIVATE PARTNERSHIPS
The collective expertise and know-how of Netcare, CHH and local BEE partners in
the Free State Province have been combined to build and operate the PPPs at the
Universitas and Pelonomi Hospitals in Bloemfontein. Netcare has long expressed a
keen interest to participate in other PPPs with the Government and, to date, the
Group has submitted more than 38 proposals for PPP related services, all of
which contemplated the inclusion of significant BEE participation.
If not for the compelling transformation agendas and belief in the future of our
democratic country, it is Netcare"s firm belief that the collective action by
the Public and Private sectors will result in workable solutions being developed
and implemented that will bring better care to more people.
The fundamentals of the sector, given the scarce resources, ageing populations,
progression, pressures of infectious diseases and technological developments,
make it overwhelmingly compelling for the public and private sectors to work
together to rationalise and achieve economies of scale, more effectively than in
any other industry.
12. PREVIOUS ANNOUNCEMENTS
For information on other transformation related announcements made recently by
Netcare, stakeholders are referred to the SENS announcements and press releases
made in November and December 2004.
13. GENERAL
Netcare embraces and supports the introduction of a Healthcare Charter and
acknowledges the need to accelerate the process of transformation within the
industry through constructive engagement between Government and the private
healthcare sector. Given the fluid nature of the current environment, Netcare
will continuously review its transformation targets in line with the Healthcare
Charter, DTI Codes of Good Practice for BBBEE and the interests of all of its
stakeholders.
Netcare is committed to the future of quality healthcare in South Africa.
Netcare will contribute to the normalisation of the South African society
through this BBBEE strategy. It will contribute to the growth of the economy to
assist the South African Government to create sustainable jobs and reduce
poverty. A vibrant world-class private healthcare sector is essential to attract
foreign investment to contribute towards a growing economy with increased
employment and therefore increase the number of lives that will need and can
afford private healthcare.
Netcare is developing solutions to cater for this need in a manner that:
- ensures a return for its investors so as to attract sustainable investment
and guarantee meaningful investments and expansion in the healthcare
industry, and
- will attract and retain the quality Healthcare Professionals, Nurses,
Management and Staff needed to provide valuable intellectual capital in
line with the increasing demands of the healthcare environment.
Netcare continues to seek ways to partner the National and Provincial Health
Departments to increase access to quality healthcare. The Group is a long-term
player, committed to South Africa, has more than R7 billion invested in assets,
is supported by more than 10 500 healthcare professionals, employs over 20 000
dedicated people, and contributes more than R1,4 billion to the fiscus on an
annual basis.
The Board would like to thank the members of the Netcare Transformation
Committee for their efforts to date and commitment to achieving Netcare"s
transformation objectives. This initiative is to recognise the healthcare
professionals and other people that make Netcare the formidable and respected
organisation that it has evolved into and will continue to strive to be.
HEALTH PARTNERS FOR LIFE - ENSURING BETTER CARE TO MORE PEOPLE.
Michael I Sacks Dr Jack Shevel Dr Victor Litlhakanyane
Chairman Chief Executive Officer Executive Director
Transformation
Committee Chairman
Sponsor
Merrill Lynch South Africa
21 April 2005
Date: 21/04/2005 09:30:27 AM Supplied by www.sharenet.co.za
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