Explore strategies to improve performance of companies in health insurance industry, case of Premier Services Medical Aid Society (2014-2020)

Abstract

The research study conducted discussed strategies to improve performance of companies in the health insurance market of Zimbabwe focusing on Premier Service Medical Aid Society (PSMAS) from period (2014-2020). The market structure of the health insurance played a role in rising health care costs and in limiting access to affordable health insurance and health care. Evidence suggests that health insurance markets in Zimbabwe are highly concentrated in the central business district (CBD) area. Health insurers are intermediaries in the transaction of the provision of health care between patients and providers: reimbursing providers on behalf of patients, exercising some control over the number and types of services covered, and negotiating contracts with providers on the payments for health services. The funding of the medical aid is by way of monthly deductions from subscribing members. Competition and choice in health care are viewed as solutions to some of the most pressing issues in health care sector, including rising costs, inefficient delivery systems, and suboptimal quality. According to economic theory, price competition in health care is desirable because it can lead to lower costs for consumers, creating broader access to services and products. Health costs appear to have increased over time in large part because of complex interactions among health insurance, health care providers, employers, pharmaceutical manufacturers, tax policy, and the medical technology industry. Reducing the growth trajectory of health care costs may require policies that affect these interactions. The aim of the study was to analyze and explore strategies to improve performance of companies in this industry in a heavily competitive environment and how they apply survival tactics. Findings from this paper are relevant for understanding dynamics of the current health insurance systems and will help policy makers anticipate some of the issues involved in a concentrated health insurance market. The data for the research was collected through stratified random sampling to select the population of 260 participants from PSMAS staff and management at its head office in Harare. A structured questionnaire was utilised to extract information from the respondents and the results showed that the organization needs to come up with strategies to retain its market share. Recommendations included that PSMAS and its SBUs PSMI should work in harmony for the benefit of members and employees.