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Paidamoyo Chipunza Senior Health Reporter
Premier Service Medical Aid Society has pulled out of the Association of Healthcare Funders of Zimbabwe over the latter’s resistance to implement a Government directive on new medical tariffs, it has been learnt.
PSMAS is currently under the management of a curator, Dr Gibson Mhlanga, who is also director for Curative Services in the Ministry of Health and Child Care and is mandated to implement Government directives.
Although it is agreed that the current tariffs were unsustainable, PSMAS indicated it was not going to defy Government.
“I represent Government in Premier (Service Medical Aid Society) and there is no way I can be there and at the same time go against resolutions that are made by Government.
“My job there is to implement directives,” said Dr Mhlanga.
“The official position is that we are implementing the gazetted tariffs but when it comes to practice, because the money is not there we are paying what we are able to.”
Dr Mhlanga said specifically for that reason, PSMAS had to pull out of AHFoZ for now as it could not be in an association which goes against its position.
He said since they were in agreement that the gazetted tariffs were too high, PSMAS has also started its negotiations with service providers with a “viable” tariff proposal. “We are in full agreement that the new gazetted tariffs are unsustainable and they will lead to the collapse of the entire medical aid industry in Zimbabwe,” he said.
Dr Mhlanga said PSMAS’ financial status had also improved, particularly with regards to clearing the debt owed to the Zimbabwe Revenue Authority.
PSMAS had now reduced its debt to ZIMRA by half to US$50 million.
A 100 percent penalty interest had been charged. The institution would continue negotiations to enter into a contra arrangement with the Ministry of Finance, which owed the society about US$80 million in unpaid member subscriptions.
“I am happy to say that through negotiations, we have managed to reduce the penalty amount. Its no longer 100 percent for PSMAS, it has been reduced to 15 percent and for PSMI the penalty has been reduced to 20 percent. That has significantly reduced the amount of money that we owe ZIMRA,” he said.
“Our major hurdle will be to see how to service what we owe service providers,” he said. Problems at PSMAS started when the organisation’s top management remuneration structure was exposed, showing that the former group chief executive Dr Cuthbert Dube earned an average of US$500 000 a month.
This happened at a time PSMAS failed to pay up service providers, resulting in its members failing to access healthcare.
Following the disclosures, Dr Dube and the society’s chairman were forced to step down. Subsequently, the whole board of directors resigned.
Government then appointed a management team led by Dr Mhlanga to run the society’s affairs in the interim.
Online Reporter