The Bonitas Medscheme Split has become a major topic in the South African healthcare sector. Bonitas Medical Fund, South Africa’s second-largest open medical scheme, has confirmed a major supplier shake-up. It will end its long-running administration relationship with Medscheme and hand key roles to Momentum Health and Private Health Administrators (PHA). The changes cover all Bonitas options except Boncap, its low-income option.
Bonitas Medscheme Split Signals End of 40-Year Partnership
Medscheme has administered Bonitas since 1982. That makes the split a rare break in a sector known for long contracts and sticky operational ties. Bonitas said it moved after a competitive request-for-proposals process launched ahead of the end of Medscheme’s current five-year contract in May 2026.
Bonitas has more than 374,000 principal members and roughly 750,000 beneficiaries. That scale makes it one of Medscheme’s core clients. The loss is also significant for Medscheme’s parent, JSE-listed Afrocentric.
What Changes for Members
Bonitas has split the work between two providers. Momentum Health won the administration contract, while PHA secured the managed care contract. According to reports, these new arrangements take effect on 1 June 2026.
Lee Callakoppen, the principal officer of Bonitas, framed the move as a decision centred on governance and value. He noted that the scheme expects to benchmark service provider contracts on an ongoing basis. Callakoppen also warned against "evergreen" contracts that roll over without a value test. The scheme aims to reduce non-healthcare costs, though it did not disclose the financial details of the new deal.
Regulator Probe and Court Fight Continue
The timing is politically and legally charged. The Council for Medical Schemes (CMS) has launched a forensic investigation into alleged procurement issues related to the appointment of PHA to administer Boncap. Medscheme previously sought to prevent Bonitas from proceeding with the tender process while the probe is ongoing.
The court dismissed Medscheme’s urgent interdict application, finding the matter not urgent and scheduling the hearing for 3 March 2026. Afrocentric has told shareholders that Bonitas proceeded with the awards despite pending court proceedings and that the group will await the court outcome before providing further updates.
Afrocentric Revenue Exposure and Sector Implications
For Afrocentric, the immediate issue is client concentration risk. For the wider industry, the episode highlights rising scrutiny of procurement, governance, and demonstrable value in administration and managed care contracts. It also underlines how regulatory processes can intersect with competitive tender cycles, especially when contracts are large and member impact is high.
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