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Case studies: South Africa - Ergo

5.5 Outsourced health care at Ergo

The Ergo occupational health clinic - now known as East Rand Occupational Health Surveillance (EROS) - was established as a separate entity on 1 September 2004. The clinic was previously manned by Ergo staff, with a medical officer appointed by AngloGold Health Service (AHS). The same staff now runs the clinic as an independent entity, in conjunction with a private occupational medical officer. The contract with AngloGold Ashanti provides for AHS to continue auditing service levels.

EROS was the brainchild of senior occupational health practitioner Bannie Grobler. "The idea began with Ergo's social plan. Johan Coetzer and the team from SMEDI (AngloGold Ashanti's Small and Medium Enterprise Development Initiative) were very helpful in drawing up our business plan and in conducting negotiations with Ergo management.

"It's business as usual at Ergo until closure," says Grobler. "Thereafter, we will occupy the same premises for a two-year period. What happens after that will depend on what is decided regarding the Ergo premises, as well as on our new clients and their demands."

The clinic's future target market is principally the smaller companies in the Ekurhuleni area who do not have the resources to provide for occupational health services in-house. Seven companies have agreed to retain the clinic's services. The clinic provides services in five principal areas:

  • assistance to employees injured on duty;
  • medical surveillance as required by COIDA (Compensation for Occupational and Industrial Diseases Act) and ODMWA (Occupational Disease in Mines and Works Act). This includes medical examinations on recruitment, after annual leave, and on exit and transfer;
  • primary health care facilities including treatment for chronic conditions, such as diabetes and hypertension. This facility is regularly attended by over 400 employees or contractors;
  • Ergo's HIV/AIDS programme, currently still integrated with the AngloGold Ashanti programme. Grobler and her team manage the Wellness Clinic and administration of anti-retroviral therapy (ART), while a counsellor visits the clinic twice per week to assist with the voluntary counselling and testing (VCT) programme. 67 people are currently registered at the Wellness Clinic; and
  • the TB management programme.

While the clinic is currently fully occupied, the challenge will come after Ergo's closure during 2005.

"We need a patient base of at least 450 to break-even," says Grobler. "The seven clients we have retained so far are going to pay us on a per-visit basis: we are hoping to sign up future clients on a monthly retainer, which would provide some guaranteed income."

The clinic has entered into a partnership with Ambusave, a locally-based company that provides assistance to smaller employers in the Ekurhuleni area.

Says Grobler "It's been a steep learning curve, but we are looking forward to the challenge of going on our own."

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Report to Society 2004