Sizwe Hosmed Medical Scheme faces challenges but curator remains optimistic

The curator of the financially distressed Sizwe Hosmed Medical Scheme has expressed her confidence that it can still be saved despite the major challenges it faces and is making plans for its future.

Lebogang Mpakati was appointed in September after Sizwe Hosmed was placed under provisional curatorship by the Gauteng High Court, Pretoria, which confirmed it last month.

Sizwe Hosmed was dumped by the SA Local Government Bargaining Council (SALGBC) after it failed to meet the accreditation criteria.

The SALGBC also gave concerned municipal workers the green light to abandon Sizwe Hosmed prematurely after they complained that they were having difficulties accessing healthcare services after it was placed under provisional curatorship in September.

The Independent Municipal and Allied Trade Union was informed by its members that healthcare practitioners were increasingly requiring upfront cash payments for services, as Sizwe Hosmed had stopped honouring claims, yet continued to collect monthly contributions.

Additionally, after it was placed under provisional curatorship, it announced its intention to raise its subscription fees by a staggering 19% in 2026 without consulting the SALGBC as required by the conditions of its accreditation.

Mpakati said every medical scheme desires to retain members and also grow, and that they were saddened by the loss of members as a result of not meeting the required minimum threshold of 15,000.

“We ended up at 12,721 members, missing the threshold by 2,279 members despite our best efforts,” she explained.

According to Mpakati, she is confident that the medical aid scheme can be saved as it has been an integral part of South Africa’s healthcare industry for a combined 83 years.

“It is worth saving,” she said of the scheme established through the merger of Sizwe Medical Fund and Hosmed Medical Scheme.

Sizwe Hosmed’s solvency level stood at 36.5% at the time of the merger in November 2021,  but it only managed 5.6% and 6.62% in June and July this year, respectively.

The statutory requirement for solvency level is 25%.

Mpakati emphasised that Sizwe Hosmed has not collapsed.

“It is going through challenges which necessitated curatorship. However, the scheme is operational and continues to provide services to members, while also making plans for 2026,” she added.

Mpakati said as a curator, it is her job to investigate and address the challenges that resulted in the scheme being placed under curatorship and make recommendations, and that the process is still ongoing.

The Council for Medical Schemes believes curatorship for Sizwe Hosmed is in the interest of beneficiaries and that it was desirable due to material irregularities, as the scheme was not in a sound financial condition.

loyiso.sidimba@inl.co.za