Medical Scheme Placed Under Curatorship

Hosmed medical scheme has been placed under provisional curatorship by the High Court in Pretoria due to “governance concerns”.

The has court appointed Siyabonga Jikwana as a provisional curator. A new board will take over shortly, the Council for Medical Schemes (CMS) announced.

Medical Scheme Under CuratorshipJikwana replaces Hosmed’s principal officer and the board of trustees.

The CMS assured the 34 000 members of Hosmed that the claim-paying ability of the scheme would not be affected by the provisional curatorship.

It was the CMS, the statutory regulator of the medical scheme industry, that initiated the application to the court to address concerns  about the running of Hosmed.

Meanwhile, Hosmed has issued a statement saying that business would proceed as usual and that the scheme would continue to meet the needs of its members.

The statement quoted Jikwana as saying that he was pleased with administrative efforts at Hosmed to keep the scheme operational.

“There’s been a great improvement on its reserves albeit slightly below the required 25 percent.”
Jikwana said he was “confident” that the scheme could do a turnaround.

* Hosmed was in hot water with the CMS in December last year after it failed to remit the required financial information.