Go Back Email this Link to a friend

Netcare And Harmony Sign Healthcare Deal

Release Date: 28/04/2004 12:26:37      Code(s): HAR NTC
Netcare And Harmony Sign Healthcare Deal                                        
Harmony Gold Mining Company Ltd.                                                
(Co. Reg. No. 1950/038232/06)                                                   
ISIN No.: ZAE000015228                                                          
JSE Code: HAR                                                                   
Network Healthcare Holdings Ltd                                                 
(Co. Reg. No. 1996/008242/06)                                                   
ISIN No.: ZAE000011953                                                          
JSE Code: NTC                                                                   
NETCARE AND HARMONY SIGN HEALTHCARE DEAL                                        
Introduction                                                                    
Harmony Gold Mining Company Limited ("Harmony") and Network Healthcare Holdings 
Limited ("Netcare"), have jointly formed a new company (referred to herein as   
"Health-Manco") to manage the provision of healthcare services of the Harmony   
Group.                                                                          
The agreement between Harmony and Netcare forms the first part of a transaction 
that will eventually see the complete outsourcing of the management of Harmony"s
healthcare services to Health-Manco.                                            
Health-Manco will oversee the provision of the entire range of healthcare       
services to Harmony employees including, inter alia, occupational health,       
primary care, hospital management, pharmacy procurement and emergency healthcare
services.                                                                       
Health-Manco intends to use the next six months as a consolidation period in    
which it will familiarise itself with Harmony"s needs, identify areas of        
opportunity and implement systems. The intention is to pilot various healthcare 
models to focus on cost-effective and quality healthcare delivery that is       
comprehensively measured by clinical outcomes. These risk models will ultimately
result in providing quality healthcare services to Harmony employees at an      
agreed upon rate.                                                               
The parties have already had positive initial discussions with other mining     
Groups for the consolidation of healthcare services within the entire mining    
sector. The success of this initiative is also expected to be enhanced by the   
inclusion of localised industry in making use of this network of mining         
hospitals, together with Netcare"s infrastructure.                              
Rationale                                                                       
The transaction will bring a wide range of benefits to Harmony, including the   
centralisation of Harmony"s healthcare services. This process makes the         
provision of these healthcare services easier to manage resulting in a more     
efficient and cost-effective delivery of services. Harmony will thereby be      
positioned to offer all its employees more comprehensive healthcare benefits.   
Netcare, with its integrated healthcare delivery model and full range of        
services, is ideally placed to jointly manage the healthcare needs of various   
partners, using a range of healthcare models that are able to suit each         
company"s needs. With the advent of Netpartner in 2003, the eventual            
facilitation of a comprehensive network of healthcare service providers would   
also be utilised to assist in providing meaningful, quality healthcare delivery 
solutions for both mine employees and their dependants.                         
The combined participation by Harmony and Netcare is expected to yield          
significant benefits through, inter alia, the following factors:                
1     Operational efficiencies using;                                           
(i)  Consolidation and rationalisation                                          
(ii) Standardisation and economies of scale                                     
(iii)     The adoption of benchmarking and best practice principles             
2.   Pooled management and specialised healthcare expertise;                    
3.   The comprehensive range of services on a national basis;                   
4.   Improved utilisation of Harmony"s hospital assets using Netcare"s brand and
image;                                                                          
5.   Innovation through accessible, affordable new healthcare product options;  
6.    To offer the currently uninsured employees of the industry and their      
dependents access to quality healthcare;                                        
7.    Improved quality of care through staff motivation, training, exchange     
programmes and retention;                                                       
8.    Improved social responsibility to communities.                            
Financial effects                                                               
The financial effects of this transaction to both Harmony and Netcare are, at   
this stage, not expected to be significant in the immediate future.  However,   
the successful achievement of the objectives, which includes the potential      
rollout of the strategy to the broader mining industry, is expected to yield    
meaningful returns to all current and future stakeholders.                      
Sandton                                                                         
28 April 2004                                                                   
Merchant Bank to Harmony                                                        
Rand Merchant Bank Corporate Finance                                            
(A division of FirstRand Bank Limited)                                          
Harmony Sponsor                         Netcare Sponsor                         
JP Morgan      Equities Limited         Merrill Lynch South Africa (Pty) Limited
For further information contact:                                                
Netcare                                                                         
Dr J shevel  Telephone 0113010202                                               
Harmony                                                                         
B Swanepoel Telephone 011 6840140                                               
or                                                                              
F Dippenaar Telephone 011 6840140                                               
Date: 28/04/2004 12:26:41 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             
                                                                                
                                                                                
                                                                                



                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2019 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.