11 May 2007 Dear Service Provider MIGRATION TO NEW INFORMATION TECHNOLOGY PLATFORM Over the past two years, Old Mutual Healthcare (OMHc) has embarked on a sustained programme to review its business operations. A significant investment in money, time and effort has been made by OMHc to ensure that we deliver healthcare solutions that accurately and successfully respond to meet the ever-changing needs of our members, clients, industry and business partners. In so doing, we are excited about our aim to build a stronger foundation for innovative solutions. NEW INFORMATION TECHNOLOGY OFFERING We commissioned an exhaustive audit of our business operations, including our Information and Communication Technology (ICT) capabilities. After this audit, OMHc decided on the new ICT platform from Neil Harvey and Associates (NHA). It is worth noting that the implementation of the new ICT platform, called Medware System, is premised on the need to respond to changing technologies and to gain efficiencies through improved business processes. We believe the NHA system is the best commercially available health care administration system in South Africa and that this system will enable OMHc to offer a world-class administration service to you as a valued member. 1. HEALTHCARE ADMINISTRATION MODULE The new system fully integrates with modern ICT architectures, including internet, e-mail, mobile services, electronic document storage, business intelligence tools and provides effective and efficient managed care solutions; thus improving the way in which OMHc will be able to deliver services to members, suppliers, agents, employers and managed care partners. System features include the following: Membership pre-registration, registration and maintenance Contribution collection and reconciliation Interfaces to employer groups Real-time claims assessment and response/authorisation to providers Direct on-line interaction and claims submission with major Switches (Medikredit, Mediscor, DH Switch, HealthBridge) Batch claims (Paper, EDI, Direct) Service providers stand to gain significantly from these new applications, thus eliminating the need for them to contact the call centre for mundane queries. 2. MANAGED CARE MODULE Built into the integrated ICT solution is a second-generation Health Risk Management product, called Careware. This product will be implemented as an integral part of the Healthcare Administration module, to provide a unique managed care model with integrated clinical support. The system will deliver the vital capability of integrating managed care activities with the claims process. This will enable OMHc to offer a fast, intelligent authorisation and monitoring process. TIMELINES Implementation of the new system commenced in July 2006 with a planned completion date in early 2008. The first schemes to be migrated were Old Mutual Staff Medical Aid Fund and Mutual & Federal Medical Aid Fund. The Medshield Fund was a third scheme which we took on from Medscheme, a competitor in our space. The Nedgroup Medical Aid Scheme is next to be migrated. The rest of the medical schemes under OMHc’s administration will be gradually migrated until 2nd quarter 2008. Please pay attention to the notes at the bottom of your claims advices, as we will notify you of future developments. MIGRATION TO NEW SYSTEM For the Nedgroup Medical Aid Scheme, the transition to the new ICT system is scheduled to commence during June 2007. Old Mutual Healthcare will stop assessing claims at the end of May 2007 and resume the process on 11 June 2007. By doing this we will ensure that claims that are received while we are still operating on the current Hicare system complete the entire assessing cycle on this system. During the migration process we will strive to ensure that you are not inconvenienced. In certain instances our normal administration processes will be slightly altered in order to facilitate the migration process and we urge you to take note of the following information: No Claims Processing from 1 June to 11 June 2007: When the Medware system goes live on 11 June the claims assessing process will resume. The last date of payment of claims on the current Hicare system will be 31 May 2007. During the period, 1 June to 11 June 2007 we will not refund members or pay suppliers for any claims that have been received during this period. Claims refunds will resume from 11 June 2007. No Impact on Registration of Members and Dependants: It is important to note that the registration of new members received after 31 May 2007 will only be effected after 11 June 2007. In addition, we will still be able to receive member contributions although any refunds due to members as of 31 May 2007 will only be processed and paid after 11 June 2007. Impact on Chronic Medicine Authorizations for New Members Only: Chronic medicine authorisations for existing members will proceed as normal. We will still be able to confirm claims status and benefits for our members and any chronic authorisation will be done manually during this phase. However, we will not be able to effect authorisation for new members during this period. In the event that such members may require chronic medication, they may be requested to pay in cash and claim later from the Fund. Please note that the above information pertains to all schemes under our administration but the specific timelines will only be relevant to the Nedgroup Medical Aid Scheme. The rest of the schemes under our administration will not be. BEST VALUE FOR MONEY As a business, we remain committed to providing excellent, value for money service to you as our valued business partner. We have been very prudent in ensuring that the transition to the new ICT system takes place with minimal effect, if any, to our existing business relationship. Yours sincerely
Dr Martin de Villiers Risk Management Old Mutual Healthcare	Nenzeni Adams-Duma Chief Information Officer Old Mutual Healthcare