Momentum Metropolitan Health positions itself for implementation of NHI
“Momentum Metropolitan Health Group has entered an empowerment deal that gives 32% of the business labour unions and black medical professionals, a move speculated to position the medical scheme administrator to benefit from the planned National Health Insurance,” reported MedicalBrief (6 October 2021). The revised shareholding in the health division of JSE-listed Momentum will see Nehawu Investment Holdings, the Popcru Group of Companies (PGC) as well as several black business leaders in the healthcare sector (including Mogologolo Phasha, president of the South African Pharmacy Council, and doctors Ntombi Mutshekwane, Sello Rathete, David Sekete, Lucky Mathebula and Gil Mahlati) owning 32%, with Momentum Metropolitan Health will retain the remaining 68%.
According to Hannes Viljoen, CEO of Momentum Metropolitan Health, the group is gearing up to enable universal access to healthcare for all South Africans and reduce the cost of providing current services in time.
In a News24 analysis, Makwe Masilela, chief investment officer at Makwe Fund Managers, said that since there wasn’t enough money to go ahead with NHI, its implementation would require substantial investment private sector investment. The proposed NHI model would see government contracting medical schemes to provide services, existing medical aid administrators would have to lobby for their share of the pie when the state started awarding contracts.