2020 INTEGRATED REPORT

PROFESSIONAL PROVIDENT SOCIETY HEALTHCARE ADMINISTRATORS PROPRIETARY LIMITED (CONTINUED) ABOUT PPS HEALTHCARE ADMINISTRATORS PPS Healthcare Administrators (PPSHA) is a wholly-owned subsidiary of PPS Insurance and we offer primary administration and managed healthcare services to a number of open and restricted medical aid schemes. The company is governed by the Medical Schemes Act and regulated by the Council for Medical Schemes. The medical schemes in our portfolio are:  Profmed, a closed scheme for graduate professionals. We provide administration and managed healthcare services for this scheme.  KeyHealth, an open scheme which services local government employees and a growing number of private members. We provide administration and managed healthcare services for this scheme.  Regular Force Medical Continuation Fund, a prefunded medical scheme that funds healthcare treatment for retired members of the South African National Defence Force. We provide administration and managed healthcare services for this scheme.  De Beers Benefit Society, a closed medical scheme specifically for the employees of De Beers. We provide managed healthcare services for this scheme.  SEDMED, a closed medical scheme for the Seventh Day Adventist Church. We provide managed healthcare services for this scheme. As each of these schemes caters for different member needs, we customise our healthcare solutions rather than offering a single packaged service. We also aim to differentiate ourselves from our competitors through our high-service model and proven capability in managing closed, open and prefunded schemes using bespoke solutions. PERFORMANCE PPSHA is South Africa’s fourth-largest medical schemes administrator and our fees track within the industry average range. We have consistently contributed to PPS Profit-Share. PPS members who hold qualifying PPS life products and belong to Profmed earn additional Profit-Share, which is reflected on their account statements. As part of the PPS Profit-Share Cross-Holdings Booster, these members earn an additional allocation for holding a combination of PPS life products, as well as products from PPS subsidiaries. We have grown considerably since 2005, when we took on Profmed, our first client. Today, across all schemes, the total membership under management is 100 500 families. In 2020, our business, like all others, was affected by the COVID-19 pandemic. The impact of the first phase of the lockdown on healthcare services providers, medical schemes and administrators, all of whom are essential services providers, was initially significant. Local markets crashed and this, together with extensive job losses in the economy, had a direct influence on our income and the income of the schemes we service. Costs certainly came under the spotlight and we had to look at managing them without compromising our ability to deliver. The schemes nevertheless did not see a markedly higher attrition rate than normal, and the uptake of new members was comparable to previous years. There were, however, challenges related to collecting contributions as some members lost their jobs and some professional members in private practice were unable to work due to lockdown restrictions. The schemes we administer offered a number of concessions and relief measures to assist members in this position. In the area of managed healthcare, the schemes agreed to cover telehealth consultations for routine ailments and conditions as a way of minimising potential exposure to the virus. After consulting with the schemes, coverage for enhanced telehealth services – such as consultations with specialists, psychologists and psychiatrists – was also included. At operational level, COVID-19 fundamentally changed the way in which we work. In managed healthcare, 66 | PPS INTEGRATED REPORT 2020