Sustainability report - Our response to stakeholder issues

Patients

Key issue: facilities that are up-to-date with developments in healthcare.

Our response

In addition to our standard healthcare facilities, we offer specialised divisions that include:

• Bariatrics;
• Centres of Excellence that focus on niche areas including endometriosis, fertility, oncology, paediatric cardiac care and oncology care;
• Genetic services;
• HIV services;
• Renal services;
• Sports medicine and orthopaedics; and
• Transplant services.

In 2009, we expanded our specialised facilities with the acquisition of Thornbury Radiosurgery Centre in the UK, which provides cutting edge non-invasive brain surgery for a range of conditions.

Doctors

Key issue: Access to the best equipment, instruments, medicines and support staff.

Our response

• In 2009, we invested R780 million in equipment (R468 million in SA, R312 million in the UK). In SA, a new electrophysiology laboratory was built at Netcare Milpark Hospital and emergency generator plants were upgraded to dual redundancy at The Bay, Umhlanga and Greenacres hospitals. In the UK, four MRI scanners, four CT scanners and one of only four gamma knives in the country were acquired.
• In SA, which is experiencing an acute skills shortage, we maintained our commitment to intensive investment in training. This is evinced by the fact that, although Netcare manages 7% of the total number of beds in the private and public sector, we train approximately 25% of the nurses that graduate in SA and a significant portion of all the paramedics that qualify.

Employees

Key issue: Recognition of contribution to the company.

Our response

• Self-funded incentives remain in place for middle managers and above, based on individual performance and corporate, divisional and business unit targets in place for Netcare SA and UK.
• In SA, issuing of share options to categories of staff engaged in driving the business serves as a medium- to long-term retention and recognition mechanism.
• Netcare SA’s new staff recognition scheme, NETrewards, will have the benefit of ongoing development during the year.
• Netcare UK has a recognition scheme for non-managerial employees and teams at business unit level.
• In SA, 75,5% of all staff are on Netcare’s medical scheme. This represents one of the highest penetration rates for medical aid cover among large employers in SA. In the UK, staff may opt to belong to private medical insurance schemes. Company contributions are included in the cost of employment at middle and senior management levels.
• In SA, the annual Netcare Night of the Stars Awards recognises employees who go above and beyond the call of duty. This initiative has been adopted by the UK and will be in effect from 2010.

Further detail can be found in our Human capital report on page 98.

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Funders

Key issue: Cost consciousness.

Our response

We acknowledge that access to quality private healthcare is expensive. Netcare remains firmly committed to containing medical inflation, through training, partnerships, increasing primary care coverage, and well-managed and efficient healthcare delivery.

Further detail on this issue can be found in the Health policy and regulation report on page 40.

Government

Key issues: Establish PPPs, promote access and affordability and ensure quality outcomes.

Our response

• Our two new PPP hospitals, the Settlers Hospital in Grahamstown and the Port Alfred Hospital, were opened during the year. Residents from the communities now have greatly improved access to medical specialists and private healthcare. The PPPs have the additional objective of transferring skills and embedding management and clinical policies that will ensure the delivery of quality care.
• Our PPP in Lesotho, which includes the building of a 425-bed hospital in Maseru, refurbishing four primary care clinics and providing clinical services, is a model for promoting access and affordability.
• Netcare is contributing to increased access through:
  – Training of nurses; and
  – Continued investment in health infrastructure.
• In SA, government is focusing on promoting access and affordability. We are committed to partnering with government in this strategic drive, and remain equally committed to quality, which is integral to maintaining standards and attracting investment.
  

Investors

Key issues: transformation and regulatory environment.

Our response

• We maintained our Level 3 B-BBEE dti rating and our Empowerdex AA rating.
• We have already met 90% of the 2010 targets set out in the Draft Health Sector Charter and are confident of meeting all by 2010.
• Netcare operates in a highly regulated environment where the interests and expectations of stakeholders are complex and inter-related. We have been active participants in the industry process, providing constructive input for all proposed legislation.

Suppliers

Key issue: Mutual respect.

Our response

• Netcare Rating Questionnaires assess Netcare interactions with suppliers from procurement to payment.
• Annual joint audits are conducted with selected suppliers to evaluate their performance against criteria ranging from fair pricing and timeous delivery to additional value added services.

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Communities

Key issue: Specific to the needs of each community.

Our response

Netcare is an active and engaged member of the communities in which we operate. Our corporate social investment (CSI) policy is aligned with our core business competency – to provide quality healthcare. Accordingly, our initiatives aim to increase access to quality healthcare and uplift communities.

CSI focus areas in SA include:

• Emergency medical services for indigent patients;
• Healthcare accessibility initiatives;
• Community health and welfare sponsorships; and
• Bursaries.

In the UK, CSI takes the form of corporate sponsorships, including the Royal College of Surgeons, the Royal College of General Practitioners, Wellbeing of Women and health education websites. Initiatives at hospital level include national health days, patient support groups, fundraising events and support for research initiatives.

Our CSI response is extensively detailed in our Corporate social investment report on page 105.