REPORT OF THE REGISTRAR OF MEDICAL SCHEMES

REPORT OF THE REGISTRAR OF MEDICAL SCHEMES 1998

REPORT OF THE REGISTRAR OF MEDICAL SCHEMES 1998 ADDRESSES Physical Address: 1267 Pretorius Street Hadefields Block E Hatfield Pretoria Postal Address: Private Bag X34 Hatfield 0028 Telephone: (012) 431 0500 Telefax: (012) 430 7644 Internet: http://www.medicalschemes.com Page:1

CONTENTS REPORT BY THE REGISTRAR OF MEDICAL SCHEMES 3 1.1 OPERATIONAL AND ADMINISTRATIVE ACTIVITIES 3 1.2 REGULATORY DEVELOPMENTS 4 1.3 GENERAL INFORMATION 5 RESULTS 8 2.1 FINANCIAL SUMMARY 8 2.2 MEMBERSHIP 9 2.3 BENEFITS PAID 10 2.4 REVIEW OF OVERALL BUSINESS 13 SCHEDULES OF RESULTS 16 CONSOLIDATED BALANCE SHEET ANNEXURE A 16 CONSOLIDATED INCOME STATEMENT ANNEXURE B 17 CONSOLIDATED MEMBERSHIP ANALYSIS ANNEXURE C 18 ANALYSIS OF ALL BENEFITS PAID ANNEXURE D 19 ANALYSIS OF RISK BENEFITS PAID ANNEXURE E 20 ANALYSIS OF SAVINGS BENEFITS PAID ANNEXURE F 21 DETAILED FINANCIAL RESULTS: REGISTERED SCHEMES ANNEXURE G 22 DETAILED FINANCIAL RESULTS: EXEMPTED SCHEMES ANNEXURE H 27 DETAILED FINANCIAL INFORMATION: REGISTERED SCHEMES ANNEXURE I 28 DETAILED FINANCIAL INFORMATION: EXEMPTED SCHEMES ANNEXURE J 33 EXPLANATORY NOTES TO THE ANNEXURES 34 Page:2

REPORT BY THE REGISTRAR OF MEDICAL SCHEMES 1.1 OPERATIONAL AND ADMINISTRATIVE ACTIVITIES COUNCIL FOR MEDICAL SCHEMES The Council for Medical Schemes is a statutory body established by the Medical Schemes Act to serve both the interests of the public and of members of medical schemes. The Registrar of Medical Schemes is the Executive Officer of the Council. The functions of the Council are: to protect the interest of members of medical schemes with regard to medical schemes matters at all times; to control and co-ordinate the activities of medical schemes; to advise the Minister on matters concerning medical schemes; to investigate complaints and settle disputes in relation to the affairs of registered medical schemes; and to perform other prescribed functions. The Council consisted, during the reporting period, of the following members: Prof. N Padayachee Chairperson Dr J E Cornell Elected Deputy Chairperson Mr D M Brennan Dr B A Brink Mr B T Brooks Dr S Gulube Mr S J Kgamphe Mr A M Leveton Dr G Martin Mr P T Masobe Ms D L Pearmain Dr S M Pillay Mr R Sono Dr C O M Setsubi Mr R B Speedie The Council met on five occasions and the Executive Committee of Council met on ten occasions to carry out its responsibilities. A large amount of Council's time during this period went into consideration of the new Medical Schemes Bill. Council provided the Minister with a detailed report on its comments on the Bill. Council supported the underlying principles of non discrimination and community rating contained in the Bill and emphasised the need to improve governance over medical schemes. Page:3

THE OFFICE OF THE REGISTRAR The Registrar is the Executive Officer of Council and is at the head of its operations. The Registrar and his staff are responsible for: the registration of medical schemes and amendments to their rules, in a manner which complies with the provisions of the Medical Schemes Act, and the regulations framed there under as well as resolutions adopted by the Council from time to time. financial supervision of registered schemes. This included the collection of statistical information, audited financial statements and annual reports from both registered and exempted medical schemes. In addition, various schemes are required to report to the Registrar with a view to monitor their financial soundness. advising the public, management of medical schemes, employers and others on matters relating to medical schemes and the Act. monitoring the legislation and providing recommendations for regulatory improvement 1.2 REGULATORY DEVELOPMENTS The Medical Schemes Bill was published during 1998 for general comment. The parliamentary process was completed during this period and the Act was published in December 1998. The Medical Schemes Act, 1998, Act No 131 of 1998 replaced the former Act and came into operation on 2 February 1999. The Act introduces a new approach to governance, regulation and supervision of medical schemes and related activities. The Act seeks to provide greater protection to the public and to enhance access to private health care cover within a community rated environment. The new Act clearly delineates the business of a medical scheme and is complemented in this regard by the amendments to Insurance legislation. The Act also requires that all entities that carry out the business of a medical scheme should be required to register under the Act. The Act will improve substantially the governance and financial supervision of medical schemes. It will require that schemes maintain a solvency margin of 25%. Medical schemes will also be required to diversify their assets in order to minimize risk. Schemes are prohibited from holding equity in any administration company and any participating employer. Provision is made for accreditation of medical scheme administrators, managed care organisations and other intermediaries. Page:4

1.3 GENERAL INFORMATION LIQUIDATION The following medical scheme was liquidated during the period under review: Medilife Medical Scheme w.e.f 1 September 1997. East Coast Medical Plan applied for voluntary liquidation during 1998. GF Group Medical Scheme Stability Medical Scheme REGISTRATION, NAME CHANGES AND AMALGAMATION OF MEDICAL SCHEMES The following medical schemes were registered during the period under review: Anglovaal Group Medical Scheme w.e.f. 1 August 1997; Aumed Medical Scheme w.e.f. 1 December 1997; CSIR Medical Scheme w.e.f. 1 April 1997; CU Health Medical Scheme w.e.f. 01 May 1998; Engen Medical Benefit Fund w.e.f. 1 September 1997; JCI Medical Scheme w.e.f. 28 August 1998; Medgold Medical Scheme w.e.f. 1 January 1997; Minemed Medical Scheme w.e.f. 1 January 1997; Provia Medical Scheme w.e.f. 1 October 1998 ( Registered on 17 Septemer 1998); Ingwe Health Plan w.e.f. 1 November 1999; and Foschini Group Medical Aid Scheme w.e.f. 1 January 1999 (Registered on 18 November 1998. The following name changes were registered during the period under review: Aiken and Peat Medical Aid Society to KPMG Medical Aid Society; Page:5

Bonmed Mediese Skema to Malasela Group Medical Scheme; Carlton Paper Medical Plan to Pharos Medical Scheme (PIMAS); Genmed Medical Scheme to Billmed Medical Scheme; Makro SA Medical Aid Society to Massmart Health Plan; Masters Builders and Allied Traders Association for the OFS Goldfields Area Benefit Fund to Free State Medical Scheme; Mines Benefit Society to Cawmed Medical Scheme; Ferromed to Kopano Healthcare; Grinaker Electronics Medical Aid Scheme to Grintek Medical Aid Scheme; Group Five & Everite Healthcare Plan to G5MED; Momentum Health Medical Scheme to Discovery Health Medical Scheme; Kap Investments Medical Aid Society to Moremed Medical Scheme; AAC Mines Medical Scheme to Anglogold Medical Scheme; and CU Health Medical Scheme to Resolution Health Medical Scheme. The following schemes amalgamated or transferred their business as indicated during the period under review: Vrystaat Munisipale Mediese Skema with Munimed w.e.f. 1 January 1998; Morcop Medical Aid Society with Tiger Oats Medical Scheme w. e. f. 1 January 1998; SACTA Medical Aid Society with Protea Medical Aid Society w.e.f. 1 January 1998; Protea Assurance Staff Medical Aid Society (PASMAS) with Mutual & Federal Medical Aid Fund w.e.f. I January 1998; Consolidated Employers Medical Aid Society (CEMAS) with Medical Expenses Distribution Society (MEDS) w.e.f 1 January 1998; Bloemmed Medical Society with Northern Medical Society w.e.f 1 July 1998; Senmed Benefit Plan (an option within Alliance Benefit Society) with Finmed Medical Scheme w.e.f 1 July 1998; Page:6

South Atlantic Corporation Medical Aid Society (SACMAS) with Anglovaal Group Medical Scheme w.e.f. 1 May 1998; Trimed with Ferromed w.e.f. 1 July 1998; Reunert Medical Scheme with Discovery Health Medical Scheme; and Goldfields Medical Aid Society with Meddent Medical Scheme. The registration of Mercantile & General, Helpmed and Malasela Medical Scheme were withdrawn with effect from 1 January 1998 as they ceased to operate. Membership of international associations The Council is a member of the International Federation of Health Funds. The Federation held its biennial conference in South Africa during 1998. ANALYSIS OF AUDITED FINANCIAL STATEMENTS AND STATUTORY RETURNS The audited financial statements of medical schemes for the 1998 financial year has been analysed and the results are reflected in the annexures attached to this report. CONCLUSION I wish to record my appreciation for the co-operation received from the Council, the Executive Committee of Council, medical schemes, administrators of schemes, the various professions, the Financial Services Board and my colleagues for their assistance, goodwill and dedication during this period. REGISTRAR OF MEDICAL SCHEMES Page:7

RESULTS 2.1 FINANCIAL SUMMARY Financial statements prepared in accordance with the SAICA Audit and Accounting Guide on Medical Funds: shall present the state of affairs and the business of the medical scheme and the results thereof at the end of the financial year and the surplus or deficiency of the medical scheme for the financial year. shall at all times maintain its business in a financially sound condition by having assets, providing for its liabilities and generally conducting its business so as to be in a position to meet its liabilities at all times. include a trustees' report containing relevant information indicating whether or not the resources of the medical scheme have been applied economically, efficiently and effectively. The consolidated audited financial results for the period of assessment are shown in Annexure A and B The bar chart below shows how the net asset position of the medical schemes has changed the past ten calendar years. ALL SCHEMES NET ASSETS 25,000 20,000 R'm 15,000 10,000 5,000-1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 YEAR NET ASSETS CONTRIBUTIONS Page:8

2.2 MEMBERSHIP The medical schemes have been considered in terms of overall size, average membership, ratio of dependants to average principal members and the ratio of continuation members to principal members. The overall size provides an indication of economies of scale, while the other statistics provide an indication of the main characteristics of membership demographics. Detailed results for the period of assessment are shown in Annexure C, G and H The size of the registered medical schemes (by number of Principal members) at 31 December 1998 are shown below: REGISTERED SCHEMES BY NUMBER OF MEMBERS >20000 13% 10000-19999 16% 0-2499 38% 6000-9999 9% 5000-5999 4% 2500-4999 20% Page:9

The chart below shows how the membership position of the medical schemes has changed over the past ten calendar years. BENEFICIARIES COVERED BY MEDICAL SCHEMES 8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 YEAR Dependants Principal Members 2.3 BENEFITS PAID When accounting for claims (benefits paid), a fund charges to the income statement the total estimated cost of settling all claims, net of members' portions, arising from the healthcare events that have occurred in the period, whether or not reported by the end of the period. Provisions or accruals are made at the end of the period for the estimated cost, net of re-insurance, members' portions, of all outstanding claims at that date less amounts already paid, whether arising from events occurring during that period or earlier periods, and whether or not notified before the close of the accounting period. Net Claims Incurred represent the amount of claims incurred in respect of benefits for which the scheme is at risk. Where the relevant information has been provided, net claims incurred has been calculated as gross claims incurred less re-insurance recoveries, discount received, and claims towards savings plans, plus no/low claim bonuses, and net increase in provision for outstanding claims. Benefits paid (Gross Claims Incurred) have been compared as a percentage of Gross and Net Contribution Income and as a Rand amount per principal member per month, based on the average number of principal members during the year. Page:10

Detailed information for the period of assessment is shown in Annexure D, G and H. The benefits paid are in respect of both that for which the scheme is at risk and not at risk. The following charts indicate the distribution of income and expenditure per member per month PER MEMBER CALCULATIONS PER MEMBER CALCULATIONS RAND PMPM 700 600 500 400 300 200 100 0 1989 1990 1991 1992 CONTRIBUTIONS 1993 1994 1995 1996 1997 YEAR OTHER INCOME 1998 RAND PMPM 800 600 400 200 0-200 Benefits paid Other expenditure 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 YEAR Administration expenses The chart below is an indication of the relation between the key performance indicators 25,000 INCOME / EXPENDITURE All Schemes 20,000 R'm 15,000 10,000 5,000-1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 YEAR Contributions Benefits Paid Total Expenditure Total Income The chart below shows the benefits paid by category of service Page:11

BENEFITS TO MEMBERS: 1998 (EXCLUDING PROVISIONS) MEDICINES 27.0% EX-GRATIA PAYMENTS 0.1% TOTAL HOSPITALS 28.5% OTHER BENEFITS 8.2% GENERAL PRACITIONERS 10.0% DENTAL SPECIALISTS 1.1% DENTISTS 6.3% MEDICAL SPECIALISTS 18.8% The graph illustrates the changes in benefits paid by category of service providers for the past ten calendar years 7,000 BENEFITS PAID (Excluding provisions) 6,000 5,000 R'm 4,000 3,000 2,000 1,000-1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 YEAR GENERAL PRACITIONERS MEDICAL SPECIALISTS DENTISTS(incl. Specialists) Provincial Hospitals Private Hospitals MEDICINES EX-GRATIA PAYMENTS OTHER BENEFITS Page:12

2.4 REVIEW OF OVERALL BUSINESS Medical schemes are accounted for on an accrual basis. Financial statements prepared in accordance with the SAICA Audit and Accounting Guide on Medical Funds separately identify contributions and claims in respect of benefits for which the scheme is not at risk. A medical scheme may either employ administration staff (i.e. a self-administered scheme) or appoint a professional administrator to administer the scheme. In some instances, the administration functions are performed by other medical schemes to achieve economies of scale. Where the relevant information has been provided, administration expenses do not include Health Care Management expenses. The Operating Profit/(Loss) is the result for which the scheme is at risk for the current accounting period, including any adjustments arising from previous outstanding claims provisions and other related estimates, and results of re-insurance arrangements, but excluding investment income and profits and losses on the sale of assets. Net Contribution Income represents the amount of contribution income in respect of benefits for which the scheme is at risk. Where the relevant information has been provided, Net Contribution Income has been calculated as Gross Contribution Income less re-insurance premiums, contributions towards savings plans and pre-funding plans, and any other contributions in respect of benefits for which the scheme is not at risk. Where the relevant information has been provided, Net Claims Incurred has been calculated as Gross Claims Incurred less re-insurance recoveries, and discounts received. It is inclusive of any change in provisions for outstanding claims and any no/low claim bonuses that have accrued. The Operating Result is therefore sensitive to the particular method and assumptions used when calculating the provision for outstanding claims. Since the information provided generally contains consolidated results for all benefits options of each scheme, the results shown in this report will not indicate the performance of a particular benefit option of a scheme. Total income includes operating income and investment income. The Accumulated Funds of a scheme will increase/(decrease) during the period of assessment by an amount equal to total income less total expenditure, adjusted for any transfers to/from specific reserves. The net assets of a scheme include accumulated funds, asset revaluation reserves, other reserves set aside for specific purposes and any long term liability. The solvency of each scheme have been measured by calculating the ratio of accumulated funds at the end of the period of assessment to Net Contribution Income during the period of assessment. The accumulated funds shown do not include reserves set aside for specific purposes, provided that these reserves have been separately identified. Page:13

Net Contribution Income in respect of the solvency ratio represents the amount of contribution income in respect of benefits for which the scheme is at risk. Where the relevant information has been provided, Net Contribution Income has been calculated as Gross Contribution Income less contributions towards savings plans and pre-funding plans, and any other contributions in respect of benefits for which the scheme is not at risk. It is important to note that due to the issue of the SAICA guide, the comparative figures have been restated. Therefore the results calculated for schemes in different years may not be directly comparable. Detailed results for the period of assessment are shown in Annexure E and F The following graph indicates how operating results and net results, which include investment income, have fluctuated over the past ten calendar years. RESULTS 1998 R'm 1,500 1,170 1,000 757 770 689 R'm 500 - (500) 408 129 316 (113) 482 52 414 (94) 371 168 397 (234) (356) 220 237 (1,000) 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 YEAR (739) Operating Net Profit/(Loss) Page:14

The chart below shows how the operating results, as a percentage of contributions, have fluctuated over the past ten calendar years. OPERATING RESULTS AS % OF CONTRIBUTIONS % OF CONTRIBUTIONS 4% 3% 2% 1% 0% -1% -2% -3% -4% 3% 3% 1% 1% 1% -1% -1% -2% -2% -4% 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 YEAR The graph illustrates how the Net Contribution percentage increase, the benefits paid percentage increase and the medical inflation percentage increase (per Statistics South Africa), have fluctuated over the past ten calendar years. HEALTH EXPENDITURE AND CPI (MEDICAL) PERCENTAGE 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 YEAR Contribution increase Benefits Increase Medical Inflation All expenditure groups Inflation Page:15

CONSOLIDATED BALANCE SHEET SCHEDULES OF RESULTS ANNEXURE A as at 31 December 1998 REGISTERED EXEMPTED CONSOLIDATED 1998 1997 % 1998 1997 % 1998 1997 % R'000 R'000 Change R'000 R'000 Change R'000 R'000 Change FUNDS EMPLOYED ACCUMULATED FUNDS 4,824,636 4,327,794 11.5% (36,093) 65,848-154.8% 4,788,543 4,393,642 9.0% REVALUATION RESERVE 124,500 119,096 4.5% - - 0.0% 124,500 119,096 4.5% PRE-FUNDING PLAN RESERVE - 265,420-100.0% - - 0.0% - 265,420-100.0% SAVINGS PLAN RESERVE - 178,170-100.0% - - 0.0% - 178,170-100.0% OTHER RESERVES 1,018,946 924,132 10.3% 4,214 4,281-1.6% 1,023,159 928,414 10.2% TOTAL MEMBERS' FUNDS 5,968,081 5,814,612 2.6% (31,880) 70,129-145.5% 5,936,202 5,884,741 0.9% NON-CURRENT LIABILITIES 941,661 364,923 158.0% 219,342 185,999 17.9% 1,161,003 550,922 110.7% Pre-Funding plan liability - 84,253-100.0% - - 0.0% - 84,253-100.0% Savings plan liability 808,212 193,433 317.8% 131,038 67,642 93.7% 939,250 261,075 259.8% Guarantee deposit 15,061 26,162-42.4% - - 0.0% 15,061 26,162-42.4% Borrowings 118,388 61,075 93.8% 88,304 118,357-25.4% 206,692 179,432 15.2% EMPLOYMENT OF FUNDS 6,909,743 6,179,535 11.8% 187,462 256,129-26.8% 7,097,205 6,435,664 10.3% PROPERTY, PLANT & EQUIPMENT 234,630 156,039 50.4% 11,512 13,495-14.7% 246,142 169,534 45.2% INVESTMENTS 4,956,228 4,407,462 12.5% 183,236 152,707 20.0% 5,139,464 4,560,168 12.7% NET CURRENT ASSETS/(LIABILITIES) 1,718,885 1,616,034 6.4% (7,286) 89,927-108.1% 1,711,599 1,705,961 0.3% CURRENT ASSETS 5,563,681 4,774,727 16.5% 438,612 403,220 8.8% 6,002,293 5,177,947 15.9% Debtors and prepayments 2,056,722 1,374,650 49.6% 158,391 157,887 0.3% 2,215,113 1,532,537 44.5% Bank 1,266,894 1,339,084-5.4% 47,057 229,451-79.5% 1,313,951 1,568,535-16.2% Other cash and cash equivalents 2,240,064 2,060,993 8.7% 233,164 15,881 1368.2% 2,473,229 2,076,874 19.1% CURRENT LIABILITIES 3,844,796 3,158,693 21.7% 445,898 313,293 42.3% 4,290,694 3,471,986 23.6% Creditors and provisions 1,568,077 1,312,814 19.4% 94,169 86,803 8.5% 1,662,246 1,399,617 18.8% Outstanding claims provision 2,072,983 1,652,248 25.5% 341,564 216,165 58.0% 2,414,547 1,868,413 29.2% Bank overdraft 33,932 64,327-47.3% 3,571 3,731-4.3% 37,503 68,059-44.9% Bad debts provision 169,804 129,303 31.3% 6,594 6,594 0.0% 176,398 135,897 29.8% 6,909,743 6,179,535 11.8% 187,462 256,129-26.8% 7,097,205 6,435,664 10.3% Page:16

CONSOLIDATED INCOME STATEMENT ANNEXURE B for the year ended 31 December 1998 REGISTERED EXEMPTED CONSOLIDATED Average PMPM Average PBPM 1998 1997 % 1998 1997 % 1998 1997 % 1998 1997 % 1998 1997 % R,000 R,000 Change R,000 R,000 Change R,000 R,000 Change R R Change R R Change INCOME Net contribution income 17,401,466 15,570,860 11.8% 2,931,037 2,929,831 0.0% 20,332,503 18,500,692 9.9% 637 580 9.9% 245 223 9.9% EXPENDITURE 17,946,863 15,484,441 15.9% 3,124,976 2,796,059 11.8% 21,071,839 18,280,500 15.3% 660 573 15.3% 254 220 15.3% Net claims incurred 15,989,849 14,097,849 13.4% 2,886,414 2,601,960 10.9% 18,876,263 16,699,809 13.0% 591 523 13.0% 228 201 13.0% Own facility costs 105,335 104,621 0.7% 9,438-100.0% 114,774 104,621 9.7% 4 3 9.7% 1 1 9.7% Bad debts written off 23,438 22,357 4.8% 15 36-59.2% 23,453 22,394 4.7% 1 1 4.7% 0 0 4.7% Increase/Decrease in provision for bad debts 56,354 22,003 156.1% - 5,594-100.0% 56,354 27,597 104.2% 2 1 104.2% 1 0 104.2% Healthcare management expenses 311,044 144,321 115.5% 33,727 26,024 29.6% 344,771 170,345 102.4% 11 5 102.4% 4 2 102.4% Administration expenses 1,460,843 1,093,289 33.6% 195,382 162,444 20.3% 1,656,225 1,255,733 31.9% 52 39 31.9% 20 15 31.9% OPERATING INCOME/(LOSS) (545,397) 86,419-731.1% (193,939) 133,773-245.0% (739,336) 220,192-435.8% -23 7-435.8% -9 3-435.8% NET INVESTMENT INCOME 864,644 733,549 17.9% 88,442 47,280 87.1% 953,087 780,829 22.1% 30 24 22.1% 11 9 22.1% PROFIT/(LOSS) ON SALE OF INVESTMENTS 10,945 62,035-82.4% 262-100.0% 11,207 62,035-81.9% 0 2-81.9% 0 1-81.9% ADJUSTMENT TO MARKET/TRUSTEES' VALUE OF INVESTMENTS (75,041) (1,735) -4225.6% (1,540) (2,520) 38.9% (76,581) (4,254) -1700.0% -2-0 -1700.0% -1-0 -1700.0% OTHER INCOME/(LOSS) 50,874 109,794-53.7% 37,386 965 3774.8% 88,260 110,759-20.3% 3 3-20.3% 1 1-20.3% NET PROFIT/(LOSS) for the year 306,025 990,062-69.1% (69,388) 179,498-138.7% 236,637 1,169,560-79.8% 7 37-79.8% 3 14-79.8% TRANSFER TO/(FROM) RESERVES 171,983 (113,181) 252.0% (32,553) - 100.0% 139,430 (113,181) 223.2% 4-4 223.2% 2-1 223.2% ACCUMULATED FUNDS for the year 478,008 876,881-45.5% (101,941) 179,498-156.8% 376,066 1,056,379-64.4% 12 33-64.4% 5 13-64.4% ACCUMULATED FUNDS at the beginning of the year 4,346,628 3,450,912 26.0% 65,848 (113,650) 157.9% 4,412,476 3,337,263 32.2% 0.0% 0.0% As previously reported 4,327,794 3,450,912 25.4% 65,848 (113,650) 157.9% 4,393,642 3,337,263 31.7% 105-100.0% 40-100.0% Prior year adjustment 18,835-100.0% - - 0.0% 18,835 100.0% 0.0% 0.0% ACCUMULATED FUNDS at the end of the year 4,824,636 4,327,794 11.5% (36,093) 65,848-154.8% 4,788,543 4,393,642 9.0% 12 33-64.4% 5 13-64.4% Page:17

CONSOLIDATED MEMBERSHIP ANALYSIS ANNEXURE C as at 31 December 1998 MEMBERS DEPENDANTS BENEFICIARIES 1998 1997 % 1998 1997 % 1998 1997 % Change Change Change Ordinary 2,310,174 2,345,957-1.5% 3,970,888 4,025,497-1.4% 6,281,062 6,371,454-1.4% Registered schemes 1,953,975 1,950,010 0.2% 3,440,136 3,446,287-0.2% 5,394,111 5,396,297 0.0% - Open schemes 1,266,624 1,201,412 5.4% 2,251,039 2,166,839 3.9% 3,517,663 3,368,251 4.4% - Restricted schemes 687,351 748,598-8.2% 1,189,097 1,279,448-7.1% 1,876,448 2,028,046-7.5% Exempt schemes 356,199 395,947-10.0% 530,752 579,210-8.4% 886,951 975,157-9.0% Continuation 384,871 347,291 10.8% 325,578 246,257 32.2% 710,449 593,548 19.7% Registered schemes 289,355 268,848 7.6% 248,224 189,641 30.9% 537,579 458,489 17.3% - Open schemes 147,390 123,338 19.5% 138,868 86,860 59.9% 286,258 210,198 36.2% - Restricted schemes 141,965 145,510-2.4% 109,356 102,781 6.4% 251,321 248,291 1.2% Exempt schemes 95,516 78,443 21.8% 77,354 56,616 36.6% 172,870 135,059 28.0% Total 2,695,045 2,693,248 0.1% 4,296,466 4,271,754 0.6% 6,991,511 6,965,002 0.4% Average membership 2,660,204 2,676,604 4,253,853 4,229,425 6,914,057 6,906,029 Average No of dependants per principal member 1.58 1.57 Ratio of continuation members to principal members 14% 13% Page:18

ANALYSIS OF ALL BENEFITS PAID ANNEXURE D for the year ended 31 December 1998 REGISTERED EXEMPT CONSOLIDATED Average PMPM 1998 1997 % 1998 1997 % 1998 1997 % 1998 1997 % As % of As % of R'000 % R'000 Change R'000 % R'000 Change R'000 % R'000 Change R R Change GCI NCI GENERAL PRACITIONERS 1,954,521 10% 1,683,685 16.1% 224,292 8% 309,208-27.5% 2,178,812 10% 1,992,893 9.3% 68 62 10.0% 9.0% 10.7% MEDICAL SPECIALISTS 3,694,062 20% 3,197,848 15.5% 375,320 13% 3,197,848-88.3% 4,069,382 19% 3,661,783 11.1% 127 114 11.8% 16.7% 20.0% Anaesthetists 242,236 7% 200,139 21.0% 27,429 7% 33,616-18.4% 269,665 7% 233,754 15.4% 8 7 16.1% 1.1% 1.3% Dermatologists 45,578 1% 43,789 4.1% 2,942 1% 3,844-23.5% 48,520 1% 47,632 1.9% 2 1 2.5% 0.2% 0.2% Gynaecologists 314,341 9% 275,122 14.3% 23,630 6% 31,667-25.4% 337,970 8% 306,790 10.2% 11 10 10.8% 1.4% 1.7% Physicians 327,498 9% 285,626 14.7% 40,126 11% 44,468-9.8% 367,625 9% 330,095 11.4% 12 10 12.1% 1.5% 1.8% Neurologists 40,464 1% 37,075 9.1% 3,440 1% 5,007-31.3% 43,904 1% 42,082 4.3% 1 1 5.0% 0.2% 0.2% Psychiatrists 63,281 2% 61,591 2.7% 8,872 2% 13,186-32.7% 72,153 2% 74,778-3.5% 2 2-2.9% 0.3% 0.4% Neuro-surgeons 51,293 1% 45,470 12.8% 6,362 2% 8,166-22.1% 57,655 1% 53,636 7.5% 2 2 8.2% 0.2% 0.3% Ophthalmologists 187,779 5% 192,424-2.4% 9,913 3% 26,999-63.3% 197,692 5% 219,423-9.9% 6 7-9.3% 0.8% 1.0% Orthopaedic Surgeons 170,947 5% 150,331 13.7% 20,011 5% 25,884-22.7% 190,957 5% 176,214 8.4% 6 5 9.0% 0.8% 0.9% Otorhinolaryngologists 89,376 2% 81,359 9.9% 7,293 2% 9,897-26.3% 96,668 2% 91,256 5.9% 3 3 6.6% 0.4% 0.5% Paediatricians 128,008 3% 109,111 17.3% 9,359 2% 13,332-29.8% 137,367 3% 122,443 12.2% 4 4 12.9% 0.6% 0.7% Specialists in Physical Medicine 938 0% 1,724-45.6% 21 0% 714-97.1% 958 0% 2,438-60.7% 0 0-60.4% 0.0% 0.0% Plastic & Reconstructive Surgeons 24,259 1% 22,903 5.9% 1,825 0% 2,762-33.9% 26,085 1% 25,665 1.6% 1 1 2.3% 0.1% 0.1% Radiologists 763,612 21% 639,682 19.4% 78,084 21% 91,465-14.6% 841,695 21% 731,147 15.1% 26 23 15.8% 3.5% 4.1% Radiotherapists 126,697 3% 106,121 19.4% 21,117 6% 17,769 18.8% 147,814 4% 123,889 19.3% 5 4 20.0% 0.6% 0.7% Surgeons 176,099 5% 157,628 11.7% 23,067 6% 26,056-11.5% 199,166 5% 183,684 8.4% 6 6 9.1% 0.8% 1.0% Thoracic Surgeons 38,842 1% 37,052 4.8% 6,378 2% 7,787-18.1% 45,219 1% 44,839 0.8% 1 1 1.5% 0.2% 0.2% Urologists 73,093 2% 64,818 12.8% 8,682 2% 10,136-14.3% 81,775 2% 74,953 9.1% 3 2 9.8% 0.3% 0.4% Pathologists 829,723 22% 685,884 21.0% 76,770 20% 91,179-15.8% 906,493 22% 777,062 16.7% 28 24 17.4% 3.7% 4.5% DENTISTS 1,269,144 7% 1,093,165 16.1% 88,072 3% 152,710-42.3% 1,357,217 6% 1,245,874 8.9% 43 39 9.6% 5.6% 6.7% DENTAL SPECIALISTS 219,349 1% 185,866 18.0% 8,865 0% 14,292-38.0% 228,215 1% 200,158 14.0% 7 6 14.7% 0.9% 1.1% Maxilla, Facial & Oral Surgeons 69,014 31% 58,022 18.9% 2,964 33% 4,877-39.2% 71,978 32% 62,899 14.4% 2 2 15.1% 0.3% 0.4% Oral Pathologists 5,697 3% 3,344 70.4% 21 0% 35-40.9% 5,718 3% 3,379 69.2% 0 0 70.3% 0.0% 0.0% Orthodontists 114,755 52% 97,388 17.8% 4,887 55% 7,397-33.9% 119,642 52% 104,785 14.2% 4 3 14.9% 0.5% 0.6% Periodontists 14,719 7% 12,685 16.0% 490 6% 873-43.9% 15,209 7% 13,558 12.2% 0 0 12.9% 0.1% 0.1% Prosthodontists 15,165 7% 14,427 5.1% 504 6% 1,110-54.6% 15,669 7% 15,537 0.8% 0 0 1.5% 0.1% 0.1% TOTAL HOSPITALS 5,458,594 29% 5,195,260 5.1% 721,768 25% 4,628,233-84.4% 6,180,362 29% 5,542,943 11.5% 194 173 12.2% 25.4% 30.4% PROVINCIAL HOSPITALS 133,617 2% 134,373-0.6% 22,026 3% 44,768-50.8% 155,642 3% 179,141-13.1% 5 6-12.6% 0.6% 0.8% Ward Fees 85,054 64% 84,229 1.0% 19,697 89% 37,611-47.6% 104,751 67% 121,839-14.0% 3 4-13.5% 0.4% 0.5% Theatre Fees 15,111 11% 25,453-40.6% 1,037 5% 4,151-75.0% 16,148 10% 29,604-45.5% 1 1-45.1% 0.1% 0.1% Consumables 19,673 15% 12,130 62.2% 550 2% 2,498-78.0% 20,223 13% 14,628 38.3% 1 0 39.1% 0.1% 0.1% Medicines dispensed 13,779 10% 12,561 9.7% 742 3% 508 45.8% 14,521 9% 13,070 11.1% 0 0 11.8% 0.1% 0.1% PRIVATE HOSPITALS 5,078,078 93% 4,583,465 10.8% 699,742 97% 4,583,465-84.7% 5,777,821 93% 4,886,381 18.2% 181 152 19.0% 23.8% 28.4% Ward Fees 2,306,723 45% 1,815,400 27.1% 561,818 80% 505,268 11.2% 2,868,541 50% 2,320,668 23.6% 90 72 24.4% 11.8% 14.1% Theatre Fees 790,038 16% 841,164-6.1% 63,776 9% 121,085-47.3% 853,813 15% 962,249-11.3% 27 30-10.7% 3.5% 4.2% Consumables 1,094,244 22% 685,085 59.7% 17,277 2% 89,391-80.7% 1,111,521 19% 774,476 43.5% 35 24 44.4% 4.6% 5.5% Medicines dispensed 887,073 17% 764,395 16.0% 56,872 8% 64,592-12.0% 943,945 16% 828,988 13.9% 30 26 14.6% 3.9% 4.6% Global / per diem fee 246,899 5% 477,422-48.3% - 0% - 0.0% 246,899 4% 477,422-48.3% 8 15-48.0% 1.0% 1.2% MEDICINES 4,499,794 24% 3,840,358 17.2% 1,348,156 46% 720,712 87.1% 5,847,949 27% 4,561,070 28.2% 183 142 29.0% 24.1% 28.8% Medicines dispensed by Pharmacists 3,077,345 68% 2,512,409 22.5% 1,188,138 88% 418,337 184.0% 4,265,484 73% 2,930,746 45.5% 134 91 46.4% 17.6% 21.0% Medicines dispensed by Practitioners 1,422,448 32% 1,327,949 7.1% 160,017 12% 302,375-47.1% 1,582,465 27% 1,630,324-2.9% 50 51-2.3% 6.5% 7.8% EX-GRATIA PAYMENTS 26,164 0% 39,299-33.4% 3,427 0% 353 869.5% 29,591 0% 39,653-25.4% 1 1-24.9% 0.1% 0.1% OTHER BENEFITS 1,623,762 9% 1,391,799 16.7% 153,160 5% 192,717-20.5% 1,776,922 8% 1,584,516 12.1% 56 49 12.8% 7.3% 8.7% Chiropractors 16,371 1% 13,517 21.1% 1,098 1% 552 98.7% 17,469 1% 14,070 24.2% 1 0 24.9% 0.1% 0.1% Chiropodists 7,868 0% 6,977 12.8% 528 0% 359 47.2% 8,397 0% 7,336 14.5% 0 0 15.2% 0.0% 0.0% Optometrists & Spectacles 750,866 46% 617,163 21.7% 64,288 42% 76,998-16.5% 815,153 46% 694,161 17.4% 26 22 18.2% 3.4% 4.0% Physiotherapists 223,399 14% 184,321 21.2% 19,877 13% 23,919-16.9% 243,276 14% 208,241 16.8% 8 6 17.5% 1.0% 1.2% Orthoptists 3,550 0% 4,117-13.8% 1,074 1% 3,591-70.1% 4,624 0% 7,709-40.0% 0 0-39.6% 0.0% 0.0% Blood Transfusion 65,259 4% 54,412 19.9% 10,255 7% 10,508-2.4% 75,514 4% 64,920 16.3% 2 2 17.0% 0.3% 0.4% Speech Therapists 34,956 2% 24,129 44.9% 2,773 2% 4,579-39.5% 37,729 2% 28,708 31.4% 1 1 32.2% 0.2% 0.2% Psychologists 118,091 7% 81,986 44.0% 13,443 9% 20,854-35.5% 131,534 7% 102,840 27.9% 4 3 28.7% 0.5% 0.6% Occupational Therapy 24,841 2% 18,139 36.9% 1,968 1% 2,689-26.8% 26,809 2% 20,828 28.7% 1 1 29.5% 0.1% 0.1% Nursing 29,068 2% 23,956 21.3% 1,942 1% 1,786 8.7% 31,010 2% 25,742 20.5% 1 1 21.2% 0.1% 0.2% Appliances (supplied outside hospitals) 62,187 4% 53,148 17.0% 4,578 3% 6,476-29.3% 66,764 4% 59,624 12.0% 2 2 12.7% 0.3% 0.3% Dieticians 4,449 0% 3,215 38.4% 180 0% 251-28.1% 4,629 0% 3,466 33.6% 0 0 34.4% 0.0% 0.0% Homeopaths 16,550 1% 13,371 23.8% 513 0% 391 31.2% 17,063 1% 13,762 24.0% 1 0 24.8% 0.1% 0.1% Ambulance Services 25,439 2% 37,991-33.0% 3,042 2% 6,616-54.0% 28,481 2% 44,607-36.2% 1 1-35.8% 0.1% 0.1% Cardiac Technologists 40,248 2% 32,498 23.8% 9,153 6% 8,880 3.1% 49,401 3% 41,378 19.4% 2 1 20.1% 0.2% 0.2% Other 200,620 12% 222,859-10.0% 18,449 12% 24,267-24.0% 219,069 12% 247,126-11.4% 7 8-10.8% 0.9% 1.1% TOTAL BENEFITS 18,745,390 100% 16,627,281 12.7% 2,923,061 100% 9,216,073-68.3% 21,668,451 100% 18,828,891 15.1% 679 586 15.8% 89.2% 106.6% Page:19

ANALYSIS OF RISK BENEFITS PAID ANNEXURE E for the year ended 31 December 1998 REGISTERED EXEMPT CONSOLIDATED Average PMPM 1998 1997 % 1998 1997 % 1998 1997 % 1998 1997 % As % of As % of R'000 % R'000 Change R'000 % R'000 Change R'000 % R'000 Change R R Change GCI NCI GENERAL PRACITIONERS 1,663,578 10% 1,488,939 11.7% 169,097 6% 253,976-33.4% 1,832,675 9% 1,742,915 5.1% 57 54 5.8% 7.5% 9.0% MEDICAL SPECIALISTS 3,457,392 20% 3,042,282 13.6% 350,247 13% 437,493-19.9% 3,807,639 19% 3,479,774 9.4% 119 108 10.1% 15.7% 18.7% Anaesthetists 235,690 7% 194,821 21.0% 27,151 8% 33,493-18.9% 262,840 7% 228,314 15.1% 8 7 15.8% 1.1% 1.3% Dermatologists 38,915 1% 39,719-2.0% 2,404 1% 3,324-27.7% 41,319 1% 43,042-4.0% 1 1-3.4% 0.2% 0.2% Gynaecologists 284,483 8% 255,621 11.3% 21,712 6% 29,533-26.5% 306,195 8% 285,154 7.4% 10 9 8.0% 1.3% 1.5% Physicians 308,732 9% 273,741 12.8% 37,404 11% 41,376-9.6% 346,136 9% 315,117 9.8% 11 10 10.5% 1.4% 1.7% Neurologists 37,419 1% 35,116 6.6% 3,149 1% 4,596-31.5% 40,568 1% 39,712 2.2% 1 1 2.8% 0.2% 0.2% Psychiatrists 58,959 2% 58,032 1.6% 8,413 2% 12,705-33.8% 67,372 2% 70,737-4.8% 2 2-4.2% 0.3% 0.3% Neuro-surgeons 49,872 1% 44,307 12.6% 6,168 2% 7,986-22.8% 56,041 1% 52,293 7.2% 2 2 7.8% 0.2% 0.3% Ophthalmologists 176,587 5% 181,098-2.5% 9,913 3% 25,562-61.2% 186,500 5% 206,660-9.8% 6 6-9.2% 0.8% 0.9% Orthopaedic Surgeons 163,509 5% 144,639 13.0% 19,081 5% 25,146-24.1% 182,590 5% 169,785 7.5% 6 5 8.2% 0.8% 0.9% Otorhinolaryngologists 82,719 2% 76,725 7.8% 6,671 2% 9,304-28.3% 89,391 2% 86,029 3.9% 3 3 4.5% 0.4% 0.4% Paediatricians 113,808 3% 100,525 13.2% 8,735 2% 12,482-30.0% 122,543 3% 113,007 8.4% 4 4 9.1% 0.5% 0.6% Specialists in Physical Medicine 876 0% 1,655-47.0% 21 0% 703-97.1% 897 0% 2,357-62.0% 0 0-61.7% 0.0% 0.0% Plastic & Reconstructive Surgeons 22,479 1% 21,437 4.9% 1,711 0% 2,685-36.3% 24,190 1% 24,122 0.3% 1 1 0.9% 0.1% 0.1% Radiologists 715,942 21% 610,691 17.2% 72,356 21% 85,504-15.4% 788,298 21% 696,194 13.2% 25 22 13.9% 3.2% 3.9% Radiotherapists 123,935 4% 103,948 19.2% 21,048 6% 17,704 18.9% 144,983 4% 121,652 19.2% 5 4 19.9% 0.6% 0.7% Surgeons 169,524 5% 152,540 11.1% 21,933 6% 24,951-12.1% 191,457 5% 177,491 7.9% 6 6 8.5% 0.8% 0.9% Thoracic Surgeons 38,239 1% 36,338 5.2% 6,316 2% 7,709-18.1% 44,555 1% 44,047 1.2% 1 1 1.8% 0.2% 0.2% Urologists 69,255 2% 62,146 11.4% 7,885 2% 9,342-15.6% 77,140 2% 71,488 7.9% 2 2 8.6% 0.3% 0.4% Pathologists 766,447 22% 649,185 18.1% 68,178 19% 83,390-18.2% 834,625 22% 732,574 13.9% 26 23 14.6% 3.4% 4.1% DENTISTS 1,084,467 6% 986,121 10.0% 77,113 3% 152,258-49.4% 1,161,581 6% 1,138,379 2.0% 36 35 2.7% 4.8% 5.7% DENTAL SPECIALISTS 188,476 1% 164,353 14.7% 7,859 0% 14,252-44.9% 196,336 1% 178,605 9.9% 6 6 10.6% 0.8% 1.0% Maxilla, Facial & Oral Surgeons 56,737 30% 49,528 14.6% 2,838 36% 4,857-41.6% 59,575 30% 54,385 9.5% 2 2 10.2% 0.2% 0.3% Oral Pathologists 3,918 2% 1,642 138.6% 21 0% 33-37.5% 3,939 2% 1,675 135.1% 0 0 136.6% 0.0% 0.0% Orthodontists 102,339 54% 89,019 15.0% 4,143 53% 7,384-43.9% 106,482 54% 96,403 10.5% 3 3 11.1% 0.4% 0.5% Periodontists 12,614 7% 11,014 14.5% 445 6% 872-48.9% 13,059 7% 11,887 9.9% 0 0 10.5% 0.1% 0.1% Prosthodontists 12,868 7% 13,150-2.1% 412 5% 1,105-62.7% 13,280 7% 14,256-6.8% 0 0-6.3% 0.1% 0.1% TOTAL HOSPITALS 5,437,343 32% 4,690,945 15.9% 719,720 26% 823,498-12.6% 6,157,063 31% 5,514,443 11.7% 193 172 12.3% 25.3% 30.3% PROVINCIAL HOSPITALS 132,261 2% 132,844-0.4% 20,964 3% 43,972-52.3% 153,225 2% 176,816-13.3% 5 6-12.8% 0.6% 0.8% Ward Fees 84,457 64% 83,833 0.7% 18,635 89% 36,815-49.4% 103,092 67% 120,648-14.6% 3 4-14.0% 0.4% 0.5% Theatre Fees 15,057 11% 24,714-39.1% 1,037 5% 4,151-75.0% 16,094 11% 28,865-44.2% 1 1-43.9% 0.1% 0.1% Consumables 19,213 15% 11,893 61.5% 550 3% 2,498-78.0% 19,763 13% 14,391 37.3% 1 0 38.2% 0.1% 0.1% Medicines dispensed 13,534 10% 12,404 9.1% 742 4% 508 45.8% 14,275 9% 12,913 10.6% 0 0 11.2% 0.1% 0.1% PRIVATE HOSPITALS 5,058,182 93% 4,080,680 24.0% 698,757 97% 779,526-10.4% 5,756,939 94% 4,860,206 18.5% 180 151 19.2% 23.7% 28.3% Ward Fees 2,298,141 45% 1,806,334 27.2% 560,832 80% 504,457 11.2% 2,858,973 50% 2,310,791 23.7% 90 72 24.5% 11.8% 14.1% Theatre Fees 787,547 16% 835,645-5.8% 63,776 9% 121,085-47.3% 851,322 15% 956,730-11.0% 27 30-10.5% 3.5% 4.2% Consumables 1,089,957 22% 679,364 60.4% 17,277 2% 89,391-80.7% 1,107,234 19% 768,755 44.0% 35 24 44.9% 4.6% 5.4% Medicines dispensed 882,537 17% 759,336 16.2% 56,872 8% 64,592-12.0% 939,410 16% 823,929 14.0% 29 26 14.7% 3.9% 4.6% Global / per diem fee 246,899 5% 477,422-48.3% - 0% - 0.0% 246,899 4% 477,422-48.3% 8 15-48.0% 1.0% 1.2% MEDICINES 3,881,105 23% 3,494,461 11.1% 1,277,386 47% 685,344 86.4% 5,158,491 26% 4,179,805 23.4% 162 130 24.2% 21.2% 25.4% Medicines dispensed by Pharmacists 2,629,928 68% 2,278,637 15.4% 1,122,398 88% 389,726 188.0% 3,752,325 73% 2,668,363 40.6% 118 83 41.5% 15.4% 18.5% Medicines dispensed by Practitioners 1,251,177 32% 1,215,825 2.9% 154,989 12% 295,618-47.6% 1,406,166 27% 1,511,442-7.0% 44 47-6.4% 5.8% 6.9% EX-GRATIA PAYMENTS 26,164 0% 38,719-32.4% 3,427 0% 353 869.5% 29,591 0% 39,073-24.3% 1 1-23.8% 0.1% 0.1% OTHER BENEFITS 1,339,671 8% 1,163,009 15.2% 136,582 5% 184,205-25.9% 1,476,253 7% 1,347,214 9.6% 46 42 10.3% 6.1% 7.3% Chiropractors 12,361 1% 11,077 11.6% 996 1% 479 107.8% 13,357 1% 11,556 15.6% 0 0 16.3% 0.1% 0.1% Chiropodists 6,223 0% 5,814 7.1% 528 0% 354 49.2% 6,752 0% 6,168 9.5% 0 0 10.1% 0.0% 0.0% Optometrists & Spectacles 598,659 45% 522,485 14.6% 51,762 38% 73,251-29.3% 650,421 44% 595,735 9.2% 20 19 9.9% 2.7% 3.2% Physiotherapists 193,646 14% 167,043 15.9% 18,462 14% 22,716-18.7% 212,109 14% 189,759 11.8% 7 6 12.5% 0.9% 1.0% Orthoptists 3,450 0% 3,980-13.3% 1,073 1% 3,591-70.1% 4,523 0% 7,571-40.3% 0 0-39.9% 0.0% 0.0% Blood Transfusion 63,404 5% 52,476 20.8% 10,157 7% 10,453-2.8% 73,562 5% 62,929 16.9% 2 2 17.6% 0.3% 0.4% Speech Therapists 30,405 2% 21,816 39.4% 2,473 2% 4,469-44.7% 32,878 2% 26,286 25.1% 1 1 25.9% 0.1% 0.2% Psychologists 98,977 7% 71,483 38.5% 12,795 9% 20,365-37.2% 111,771 8% 91,848 21.7% 4 3 22.4% 0.5% 0.5% Occupational Therapy 20,488 2% 15,641 31.0% 1,817 1% 2,578-29.5% 22,305 2% 18,219 22.4% 1 1 23.2% 0.1% 0.1% Nursing 27,450 2% 22,758 20.6% 1,881 1% 1,728 8.9% 29,331 2% 24,486 19.8% 1 1 20.5% 0.1% 0.1% Appliances (supplied outside hospitals) 57,011 4% 49,485 15.2% 4,436 3% 6,422-30.9% 61,447 4% 55,908 9.9% 2 2 10.6% 0.3% 0.3% Dieticians 3,497 0% 2,663 31.3% 180 0% 220-17.9% 3,677 0% 2,883 27.6% 0 0 28.4% 0.0% 0.0% Homeopaths 13,608 1% 11,596 17.4% 388 0% 259 50.1% 13,996 1% 11,854 18.1% 0 0 18.8% 0.1% 0.1% Ambulance Services 24,872 2% 36,913-32.6% 3,012 2% 6,509-53.7% 27,885 2% 43,422-35.8% 1 1-35.4% 0.1% 0.1% Cardiac Technologists 38,266 3% 30,925 23.7% 9,052 7% 8,804 2.8% 47,318 3% 39,729 19.1% 1 1 19.8% 0.2% 0.2% Other 147,353 11% 136,856 7.7% 17,568 13% 22,007-20.2% 164,921 11% 158,863 3.8% 5 5 4.5% 0.7% 0.8% TOTAL BENEFITS 17,078,195 100% 15,068,829 13.3% 2,741,433 100% 2,551,378 7.4% 19,819,628 100% 17,620,207 12.5% 621 549 13.2% 81.6% 97.5% Page:20

ANALYSIS OF SAVINGS BENEFITS PAID for the year ended 31 December 1998 ANNEXURE F REGISTERED EXEMPT CONSOLIDATED Average PMPM 1998 1997 % 1998 1997 % 1998 1997 % 1998 1997 % As % of As % of R'000 % R'000 Change R'000 % R'000 Change R'000 % R'000 Change R R Change GCI NCI GENERAL PRACITIONERS 290,943 17% 194,746 49.4% 55,195 30% 55,232-0.1% 346,138 19% 249,978 38.5% 11 8 39.3% 1.4% 1.7% MEDICAL SPECIALISTS 236,670 14% 155,567 52.1% 25,073 14% 26,442-5.2% 261,743 14% 182,009 43.8% 8 6 44.7% 1.1% 1.3% Anaesthetists 6,546 3% 5,318 23.1% 278 1% 123 126.6% 6,825 3% 5,441 25.4% 0 0 26.2% 0.0% 0.0% Dermatologists 6,663 3% 4,070 63.7% 538 2% 520 3.5% 7,201 3% 4,590 56.9% 0 0 57.8% 0.0% 0.0% Gynaecologists 29,858 13% 19,502 53.1% 1,918 8% 2,134-10.2% 31,775 12% 21,636 46.9% 1 1 47.8% 0.1% 0.2% Physicians 18,766 8% 11,885 57.9% 2,722 11% 3,093-12.0% 21,489 8% 14,978 43.5% 1 0 44.4% 0.1% 0.1% Neurologists 3,045 1% 1,959 55.4% 291 1% 411-29.1% 3,336 1% 2,370 40.8% 0 0 41.6% 0.0% 0.0% Psychiatrists 4,321 2% 3,560 21.4% 460 2% 481-4.5% 4,781 2% 4,041 18.3% 0 0 19.0% 0.0% 0.0% Neuro-surgeons 1,421 1% 1,163 22.2% 193 1% 181 7.0% 1,614 1% 1,343 20.1% 0 0 20.9% 0.0% 0.0% Ophthalmologists 11,192 5% 11,326-1.2% - 0% 1,438-100.0% 11,192 4% 12,764-12.3% 0 0-11.8% 0.0% 0.1% Orthopaedic Surgeons 7,437 3% 5,691 30.7% 930 4% 738 26.1% 8,368 3% 6,429 30.2% 0 0 31.0% 0.0% 0.0% Otorhinolaryngologists 6,656 3% 4,635 43.6% 621 2% 593 4.8% 7,278 3% 5,227 39.2% 0 0 40.1% 0.0% 0.0% Paediatricians 14,200 6% 8,586 65.4% 624 2% 850-26.6% 14,824 6% 9,436 57.1% 0 0 58.1% 0.1% 0.1% Specialists in Physical Medicine 62 0% 69-10.6% - 0% 11-100.0% 62 0% 80-23.3% 0 0-22.8% 0.0% 0.0% Plastic & Reconstructive Surgeons 1,780 1% 1,467 21.4% 115 0% 77 49.5% 1,895 1% 1,543 22.8% 0 0 23.6% 0.0% 0.0% Radiologists 47,670 20% 28,991 64.4% 5,727 23% 5,961-3.9% 53,397 20% 34,953 52.8% 2 1 53.7% 0.2% 0.3% Radiotherapists 2,762 1% 2,173 27.1% 69 0% 64 7.6% 2,831 1% 2,238 26.5% 0 0 27.3% 0.0% 0.0% Surgeons 6,575 3% 5,088 29.2% 1,134 5% 1,106 2.6% 7,709 3% 6,193 24.5% 0 0 25.2% 0.0% 0.0% Thoracic Surgeons 602 0% 714-15.6% 62 0% 79-21.2% 664 0% 793-16.2% 0 0-15.7% 0.0% 0.0% Urologists 3,839 2% 2,672 43.7% 797 3% 794 0.4% 4,636 2% 3,466 33.8% 0 0 34.6% 0.0% 0.0% Pathologists 63,276 27% 36,699 72.4% 8,592 34% 7,789 10.3% 71,868 27% 44,488 61.5% 2 1 62.5% 0.3% 0.4% DENTISTS 184,677 11% 107,044 72.5% 10,959 6% 452 2324.6% 195,636 11% 107,496 82.0% 6 3 83.1% 0.8% 1.0% DENTAL SPECIALISTS 30,873 2% 21,513 43.5% 1,006 1% 40 2414.4% 31,879 2% 21,553 47.9% 1 1 48.8% 0.1% 0.2% Maxilla, Facial & Oral Surgeons 12,277 40% 8,495 44.5% 126 12% 20 531.7% 12,403 39% 8,515 45.7% 0 0 46.6% 0.1% 0.1% Oral Pathologists 1,778 6% 1,702 4.5% - 0% 2-100.0% 1,778 6% 1,703 4.4% 0 0 5.1% 0.0% 0.0% Orthodontists 12,416 40% 8,370 48.3% 744 74% 13 5712.4% 13,160 41% 8,382 57.0% 0 0 58.0% 0.1% 0.1% Periodontists 2,105 7% 1,671 26.0% 44 4% 0 10944.6% 2,149 7% 1,671 28.6% 0 0 29.4% 0.0% 0.0% Prosthodontists 2,297 7% 1,277 79.9% 92 9% 5 1723.5% 2,389 7% 1,282 86.4% 0 0 87.5% 0.0% 0.0% TOTAL HOSPITALS 21,252 1% 26,893-21.0% 2,048 1% 1,607 27.4% 23,299 1% 28,500-18.2% 1 1-17.7% 0.1% 0.1% PROVINCIAL HOSPITALS 1,356 6% 1,529-11.4% 1,062 52% 796 33.4% 2,418 10% 2,325 4.0% 0 0 4.6% 0.0% 0.0% Ward Fees 596 44% 396 50.7% 1,062 100% 796 33.4% 1,658 69% 1,192 39.2% 0 0 40.0% 0.0% 0.0% Theatre Fees 54 4% 739-92.7% - 0% - 0.0% 54 2% 739-92.7% 0 0-92.6% 0.0% 0.0% Consumables 459 34% 237 94.1% - 0% - 0.0% 459 19% 237 94.1% 0 0 95.3% 0.0% 0.0% Medicines dispensed 245 18% 157 55.9% - 0% - 0.0% 245 10% 157 55.9% 0 0 56.8% 0.0% 0.0% PRIVATE HOSPITALS 19,896 94% 25,364-21.6% 986 48% 811 21.5% 20,882 90% 26,175-20.2% 1 1-19.7% 0.1% 0.1% Ward Fees 8,582 43% 9,066-5.3% 986 100% 811 21.5% 9,567 46% 9,877-3.1% 0 0-2.5% 0.0% 0.0% Theatre Fees 2,491 13% 5,519-54.9% - 0% - 0.0% 2,491 12% 5,519-54.9% 0 0-54.6% 0.0% 0.0% Consumables 4,288 22% 5,721-25.0% - 0% - 0.0% 4,288 21% 5,721-25.0% 0 0-24.6% 0.0% 0.0% Medicines dispensed 4,536 23% 5,059-10.3% - 0% - 0.0% 4,536 22% 5,059-10.3% 0 0-9.8% 0.0% 0.0% Global / per diem fee - 0% - 0.0% - 0% - 0.0% - 0% - 0.0% 0 0 0.0% 0.0% 0.0% MEDICINES 618,689 37% 345,897 78.9% 70,769 39% 35,368 100.1% 689,458 37% 381,265 80.8% 22 12 81.9% 2.8% 3.4% Medicines dispensed by Pharmacists 447,418 72% 233,773 91.4% 65,741 93% 28,611 129.8% 513,159 74% 262,384 95.6% 16 8 96.8% 2.1% 2.5% Medicines dispensed by Practitioners 171,271 28% 112,124 52.8% 5,029 7% 6,757-25.6% 176,300 26% 118,881 48.3% 6 4 49.2% 0.7% 0.9% EX-GRATIA PAYMENTS - 0% 580-100.0% - 0% - 0.0% - 0% 580-100.0% 0 0-100.0% 0.0% 0.0% OTHER BENEFITS 284,091 17% 228,790 24.2% 16,578 9% 8,512 94.8% 300,669 16% 237,302 26.7% 9 7 27.5% 1.2% 1.5% Chiropractors 4,010 1% 2,440 64.3% 102 1% 73 39.6% 4,112 1% 2,514 63.6% 0 0 64.6% 0.0% 0.0% Chiropodists 1,645 1% 1,163 41.4% - 0% 5-100.0% 1,645 1% 1,168 40.8% 0 0 41.7% 0.0% 0.0% Optometrists & Spectacles 152,207 54% 94,678 60.8% 12,526 76% 3,748 234.2% 164,733 55% 98,426 67.4% 5 3 68.4% 0.7% 0.8% Physiotherapists 29,753 10% 17,278 72.2% 1,415 9% 1,203 17.6% 31,167 10% 18,482 68.6% 1 1 69.7% 0.1% 0.2% Orthoptists 100 0% 137-27.1% 1 0% 1 36.6% 101 0% 138-26.7% 0 0-26.2% 0.0% 0.0% Blood Transfusion 1,855 1% 1,937-4.2% 97 1% 55 77.0% 1,953 1% 1,992-2.0% 0 0-1.4% 0.0% 0.0% Speech Therapists 4,551 2% 2,313 96.8% 299 2% 110 171.7% 4,851 2% 2,423 100.2% 0 0 101.4% 0.0% 0.0% Psychologists 19,114 7% 10,503 82.0% 649 4% 489 32.8% 19,763 7% 10,991 79.8% 1 0 80.9% 0.1% 0.1% Occupational Therapy 4,353 2% 2,498 74.2% 151 1% 111 36.2% 4,504 1% 2,609 72.6% 0 0 73.7% 0.0% 0.0% Nursing 1,618 1% 1,199 35.0% 60 0% 58 4.2% 1,678 1% 1,256 33.6% 0 0 34.4% 0.0% 0.0% Appliances (supplied outside hospitals) 5,176 2% 3,663 41.3% 142 1% 53 165.2% 5,318 2% 3,716 43.1% 0 0 44.0% 0.0% 0.0% Dieticians 951 0% 552 72.4% - 0% 31-100.0% 951 0% 583 63.2% 0 0 64.2% 0.0% 0.0% Homeopaths 2,942 1% 1,775 65.7% 125 1% 133-5.5% 3,067 1% 1,908 60.8% 0 0 61.8% 0.0% 0.0% Ambulance Services 566 0% 1,078-47.5% 29 0% 107-72.5% 596 0% 1,185-49.7% 0 0-49.4% 0.0% 0.0% Cardiac Technologists 1,982 1% 1,573 26.0% 101 1% 76 33.4% 2,083 1% 1,649 26.4% 0 0 27.2% 0.0% 0.0% Other 53,267 19% 86,003-38.1% 881 5% 2,260-61.0% 54,148 18% 88,263-38.7% 2 3-38.3% 0.2% 0.3% TOTAL BENEFITS 1,667,195 100% 1,081,030 54.2% 181,628 100% 127,653 42.3% 1,848,823 100% 1,208,683 53.0% 58 38 53.9% 7.6% 9.1% Page:21

DETAILED FINANCIAL RESULTS: REGISTERED SCHEMES ANNEXURE G for the year ended 31 December 1998 Open Dependants for Ref. Name of Medical Scheme Members Gross GCI: Total Administration expenses Total Operating Net Accumulated Net Solvency public No. 31/12/98 31 December Contributions PMPM Income As % of Expenditure Profit/(Loss) Profit/(Loss) Funds Assets Ratio R'000 R'000 R'000 GCI PMPM R'000 R'000 R'000 R'000 R'000 ++ 1496 ALLCARE MEDICAL AID SCHEME 4,563 9,451 50,416 921 51,031 4,779 9% 87 47,972 2,444 3,059 3,126 3,126 6% ++ 1021 BELAND MEDICAL AID SOCIETY 10,455 16,418 120,482 960 104,131 10,102 8% 81 114,099 (14,886) (9,968) 31,537 31,537 26% ++ 1252 BESTMED MEDICAL SCHEME 17,031 24,274 196,007 959 195,066 10,673 5% 52 199,454 (12,882) (4,388) 20,751 30,183 11% ++ 1512 BONITAS MEDICAL FUND 192,916 392,668 1,662,696 718 1,719,871 123,100 7% 53 1,707,755 (45,059) 12,116 513,692 551,711 31% ++ 1034 CAPE MEDICAL PLAN 24,206 36,057 262,587 904 231,202 13,288 5% 46 203,662 4,147 27,540 125,461 154,628 48% ++ 1215 CAREMED MEDICAL SCHEME 28,380 51,682 216,841 637 98,005 24,176 11% 71 84,638 (3,169) 13,367 88,402 108,592 41% COMMERCIAL AND INDUTRIAL M.A.S. ++ 1048 (CIMAS) 12,233 17,730 138,484 943 124,136 10,164 7% 69 131,935 (17,424) (7,799) 65,829 65,829 48% COMMUNITY MEDICAL AID SCHEME ++ 1552 (COMMED) 11,640 21,000 120,996 866 130,773 15,289 13% 109 104,966 16,030 25,806 70,332 70,332 58% ++ 1491 COMPCARE MEDICAL SCHEME 16,772 27,314 152,853 759 158,627 14,682 10% 73 146,109 5,206 12,518 35,210 35,210 23% ++ 1125 DISCOVERY HEALTH MEDICAL SCHEME 146,150 208,923 1,307,100 745 356,892 68,453 5% 39 356,649 (28,677) 243 15,613 235,604 1% ++ 1464 ERICA MEDICAL AID SOCIETY 2,142 3,332 24,634 958 24,807 1,901 8% 74 21,518 2,591 3,289 5,265 5,265 21% ++ 1202 FEDSURE HEALTH 107,383 190,178 899,462 698 483,093 90,066 10% 70 491,743 (22,406) (8,650) 61,350 178,729 7% ++ 1501 FREE STATE MEDICAL SCHEME 394 700 2,644 559 1,421 213 8% 45 1,315 (345) 106 1,393 1,876 53% ++ 1466 GOOD HOPE MEDICAL AID SOCIETY 4,139 11,754 22,709 457 25,029 1,873 8% 38 21,212 1,497 3,817 14,715 14,715 65% ++ 1537 HOSMED MEDICAL AID SCHEME 40,619 103,222 191,040 392 200,924 18,596 10% 38 195,319 (4,279) 5,604 32,167 32,167 17% ++ 1295 KOPANO HEALTHCARE 20,674 34,130 163,671 660 152,910 13,772 8% 56 147,960 (12,144) 4,950 65,608 66,679 41% ++ 1556 KWAZULU NATAL MEDICAL AID SCHEME 16,625 39,801 120,224 603 78,392 15,189 13% 76 118,875 (17,876) (40,484) (12,373) (11,373) -10% ++ 1536 LIFEMED MEDICAL SCHEME 3,317 6,131 40,560 1,019 42,778 3,451 9% 87 41,524 (971) 1,254 11,407 11,407 28% ++ 1139 MEDDENT MEDICAL SCHEME 51,201 93,262 515,454 839 507,609 53,855 10% 88 514,415 (25,762) (6,807) 104,826 104,826 20% MEDICAL EXPENSES DISTRIBUTION ++ 1142 SOCIETY (MEDS) 9,418 14,409 144,423 1,278 125,406 6,863 5% 61 126,429 (6,290) (1,023) 64,578 87,742 45% ++ 1549 MEDICOVER 2000 16,568 25,600 90,132 453 12,254 11,598 13% 58 11,776 (270) 478 1,671 13,191 2% ++ 1149 MEDIHELP 168,892 178,507 1,662,635 820 1,724,419 45,049 3% 22 1,746,983 (84,396) (22,564) 263,942 267,232 16% ++ 1506 MEDIMED MEDICAL SCHEME 2,835 5,134 13,470 396 24,502 972 7% 29 12,808 663 11,695 11,695 11,695 87% ++ 1548 MEDIPOS MEDICAL SCHEME 14,962 19,027 140,640 783 107,218 9,328 7% 52 112,371 (7,313) (5,153) (304) 194,824 134% ++ 1140 MEDSHIELD MEDICAL SCHEME 45,625 101,431 300,925 550 276,373 63,485 21% 116 256,982 38,105 19,391 80,467 80,467 27% ++ 1560 METHEALTH OPENPLAN MEDICAL SCHEME 32,671 68,783 307,812 785 217,772 29,367 10% 75 207,772 (2,652) 10,000 4,215 18,965 1% ++ 1569 MINEMED MEDICAL SCHEME 3,207 4,662 27,988 727 26,316 2,221 8% 58 27,680 (1,677) (1,364) (1,405) 3,279-1% ++ 1087 MUNIMED 21,311 32,962 250,715 980 274,550 17,893 7% 70 270,016 (19,301) 4,534 91,207 103,778 38% ++ 1162 NATALMED 15,729 24,193 147,932 784 102,139 9,278 6% 49 103,289 (5,980) (1,150) 27,344 44,752 19% ++ 1166 NATIONAL INDEPENDENT M.A.S. (NIMAS) 14,758 22,353 109,207 617 113,811 6,338 6% 36 116,044 (6,837) (2,233) 24,618 24,618 23% ++ 1167 NATIONAL MEDICAL PLAN (NMP) 76,559 106,808 701,708 764 686,124 77,397 11% 84 714,536 (34,012) (28,411) 112,598 142,237 16% ++ 1170 NBC M.A.S. 13,807 23,254 197,441 1,192 183,800 19,954 10% 120 183,853 (8,311) (53) 17,821 19,321 9% ++ 1555 PHILA MEDICAL SCHEME 5,568 13,046 41,511 621 43,303 3,706 9% 55 36,815 4,695 6,487 18,287 18,287 44% ++ 1454 PRO SANO MEDICAL AID SCHEME 47,172 87,462 492,907 871 536,660 36,038 7% 64 470,765 22,142 65,895 207,305 207,305 42% ++ 1561 PROMED MEDICAL SCHEME 5,128 10,153 30,285 492 21,379 2,562 8% 42 16,574 3,877 4,805 7,481 10,464 25% ++ 1196 PROTEA MEDICAL AID SOCIETY 4,215 4,813 41,405 819 40,228 3,611 9% 71 37,626 1,197 2,602 10,395 10,422 25% ++ 1576 PROVIA MEDICAL SCHEME 576 940 792 115 623 521 66% 75 603 (123) 19 19 2,631 2% Page:22