Gauteng Health records improved revenue collection- 14 September 2020

Office of the Premier 2020/09/13 - 22:00



Qaqambile Mdledle

Acting MEC for Health, Jacob Mamabolo has welcomed improved revenue collection as department collects over R523 million from Road Accident Fund (RAF) claims.

MEC Mamabolo noted this at a recent meeting with the management of Batsumi Claims Management Solutions, the service provider appointed to assist the department with administering, processing and recovering claims from road accidents in respect of medical supplier claims.

"The process to collect from RAF is quite involved. It requires visiting and analysing the accident scene, compiling official accident reports, statements from witnesses in case of a multiple accidents, amongst others. The department does not have inhouse skills to do such work," said Mamabolo.

MEC Mamabolo added that made business sense to outsource this service given the risks involved.

Claims process requires legal skills and investigative capacity and at times the claim process extending over multiple financial years, the department has been working with Batsumi which has extensive capacity and expertise in this area.

After the department has treated a road accident patient it has to submit a claim to RAF to recuperate costs incurred. The collection service is based on risk and it is commission based. The department only pays the service provider on an agreed commission rate which is only paid once the recoveries have been received by the department and from what the company has been able to claim from RAF after meeting their stringent claims criteria.

The CEO of Batsumi, Nkululeko Madungandaba used the opportunity to update the MEC Mamabolo on the work they have been doing for the department in the past years.

From the R523 million from RAF claims in the past three financial years, Batsumi was paid R145 million which amounts to about 18% commission.

MEC Mamabolo pointed out that: "Gauteng is South Africa's economic hub and it boasts some of the largest road network in the continent, there is a high volume of cars on the roads traveling within the country and into other parts of the continent.

"This results in road accidents in which people require medical attention through the province's healthcare system"

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