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Medical Schemes Act, 1998 (Act No. 131 of 1998)


Notice of Intention to Publish Undesirable Business Practice Declaration in terms of Section 61(2)

Notice No. 643 of 2004


Notice No. 643 of 2004


Council for Medical Schemes


In terms of section 61(2) of the Medical Schemes Act, 131 of 1998, the Registrar of Medical Schemes hereby publishes his intention to make the following undesirable business practice declaration. Written representations are invited in respect of the proposed declaration, to reach the Registrar of Medical Schemes no later than 21 days after publication of this notice.


Representations should be addressed to: The Registrar of Medical Schemes (Attention: Stephen Harrison), Block E, Hadefields, 1267 Pretorius Street, Hatfield, Pretorius, or e-mail:


Draft Declaration


The Registrar of Medical Schemes, with the concurrence of the Council for Medical Schemes and the Minister of Health, hereby exercises the powers conferred on him by sectio6n1 (1) of the Medical Schemes Act, 131 of 1998, to make the following declaration.


It shall be an undesirable business practice—


1) to alienate the tangible and intangible assets of a medical scheme for substantially less than their fair value;


2) for a medical scheme to award a contract for administration services without engaging in a fair and reasonable process of evaluating a range of potential administrators to select an administrator best suited to the needs of that medical scheme, taking into account considerations of, amongst others: cost, capacity, experience in administration and financial soundness;


3) for a medical scheme to enter into an administration contract with a party in which any employee or officer of the medical scheme has a direct or indirect financial interest.