Medscheme has withdrawn its legal application against Bonitas Medical Fund. The decision clears the way for the Council for Medical Schemes (CMS) to continue a forensic investigation into disputed procurement processes. The legal action concerned contracts for medical scheme administration, managed care, marketing and sales distribution.
Medscheme claimed to have evidence of significant irregularities in tender processes involving Bonitas’s BonCap option. It also questioned the appointment of certain service providers.
The company alleged that some contracts had been awarded to entities that lacked the required experience, operational capacity, or compliance credentials.