CMS withdraws accreditation

THE Council for Medical Schemes (CMS) yesterday withdrew accreditation of Strata Healthcare Management as a managed care organisation with effect from May 31. CMS said this follows Strata’s failure to meet “the fit and proper” criteria for rendering medical scheme administration services as set out in the Medical Schemes Act. Strata was the fourth-largest medical scheme administrator in South Africa. The regulator of the medical schemes industry said the decision was taken by the CMS during a meeting held last week. CMS spokesperson Pulane Molefe said this was preceded by a Council executive committee decision not to renew Strata’s accreditation as a medical scheme administrator in December 2015. Strata previously rendered administration and managed-care services to Medihelp medical scheme, one of the five largest medical schemes in South Africa. Molefe said the scheme’s administration and managed-care services were now vested in Medihelp following sanctions imposed by the CMS on Strata. –