Discovery Limited · JSE:DSY
Discovery — Discovery Health Medical Scheme — Shareholder Meeting (June 2022)
102 slides from Discovery's shareholder meeting presentation, Jun 23, 2022
Slide 1: Discovery Health Medical Scheme Annual General Meeting
FOR OUR MEMBERS DISCOVERY HEALTH MEDICAL SCHEME | ANNUAL GENERAL MEETING CHARLOTTE MBEWU | PRINCIPAL OFFICER 23 JUNE 2022
Slide 2: Supporting our members through the COVID-19 pandemic
Supporting our members through the NAVIGATING COVID-19 COVID-19 pandemic We Leveraging innovation to deliver the CARING FOR OUR MEMBERS highest quality of care for our members for our members ENSURING THE BEST VALUE HEALTHCARE Driving affordability, quality of care and maximising value for members E
Slide 3: Supporting our members through the COVID-19 pandemic
Supporting our members through the NAVIGATING COVID-19 COVID-19 pandemic We Leveraging innovation to deliver the CARING FOR OUR MEMBERS highest quality of care for our members for our members ENSURING THE BEST VALUE HEALTHCARE Driving affordability, quality of care and maximising value for members E
Slide 4: Navigation of a complex and dynamic South African healthcare ecosystem since COVID-19
Navigation of a complex and dynamic South African healthcare ecosystem since the outbreak of COVID-19 in 2020 1st wave insights 2nd wave insights 3rd wave insights 4th wave insights 5th wave insights Focus on protecting Variants emerge, driving Delta variant Highly contagious Moving closer towards a
Slide 5: Positive vaccine take-up through DHMS at-risk population despite vaccine hesitancy
Positive vaccine take-up through DHMS at-risk population despite vaccine hesitancy Insufficient uptake High uptake of vaccines amongst at-risk population due to vaccine hesitancy Daily vaccinations: Vaccination rate 7–day moving average by age group by age group 200 000 30 000 South Africa DHMS DHMS
Slide 6: Vaccination remains crucial in managing spread and severity of the virus
Vaccination remains crucial in managing the spread and severity of the virus, particularly with the threat of future variants Vaccine effectiveness was retained through Omicron Booster shots (Dec 2021 – Jan 2022) enhance protection hospitalisation risk transmission risk mortality risk Relative risk
Slide 7: Hong Kong case study highlights need to remain vigilant
Hong Kong case study highlights need to remain vigilant and the continued importance of vaccination Rapid increase in covid-19 mortality in Hong Kong has Comparisons show the relative protection of SA’s population, disproportionately affected the elderly & unvaccinated but highlights the risk of low
Slide 8: DHMS acutely aware of the second order effects of COVID-19
DHMS acutely aware of the second order effects of COVID-19 Population health Reduction in prevention COVID-19 has increased COVID-19 will continue and screening must be overall disease burden to feature prominently has worsened and must be managed addressed of claims expected to add R7bn of lives wi
Slide 9: Supporting our members through the COVID-19 pandemic
Supporting our members through the NAVIGATING COVID-19 COVID-19 pandemic We Leveraging innovation to deliver the CARING FOR OUR MEMBERS highest quality of care for our members for our members ENSURING THE BEST VALUE HEALTHCARE Driving affordability, quality of care and maximising value for members E
Slide 10: Rapid innovation has delivered better healthcare for our members
Rapid innovation has delivered better healthcare for our members Navigating COVID-19 with comprehensive benefits and Positioning the Scheme beyond COVID-19 support for members Comprehensive COVID-19 Caring for our most vulnerable Managing the second order effects Improving patient outcomes for benef
Slide 11: Comprehensive benefits to protect and support members during Covid-19
Comprehensive benefits to protect and support our members and broader South African community during Covid-19 Caring for Members Supporting Employers Comprehensive benefits Additional interventions Employer assistance initiatives Risk assessment and screening Identifying & supporting high risk membe
Slide 12: Helping DHMS members navigate COVID-19 and non-COVID-19 healthcare needs
Helping DHMS members navigate COVID-19 and non-COVID-19 healthcare needs In addition non-COVID-19 healthcare returning to Extensive COVID-19 related claims covered in 2021 between COVID-19 waves in 2021 S members who have received a COVID-19 vaccination members relying on the Scheme for access to ca
Slide 13: Caring for members with complex conditions
Caring for members with complex conditions Extensive cover for our most vulnerable members strengthened with improved access and support during COVID-19 Full access to healthcare services at-home Benefits for COVID-19 positive patients Benefits members registered with a chronic condition Pulse oxime
Slide 14: Managing second order effects of COVID-19 – virtual care pathways
Managing the second order effects of COVID-19 – virtual care pathways Seamless connected care platform to enable virtual care Extended hospital-acuity care provided from the pathways comfort of a member’s home Platform enables remote Virtual consultation, examination and communication and Conditions
Slide 15: Managing second order effects – member support for consequent healthcare
Managing the second order effects of COVID-19 – member support for consequent healthcare Mental health benefits enhanced across the care Support through digital patient communities continuum in 2020 DHMS users since launch in March 2022 GP consultations can be face-to-face or virtual Early signs of
Slide 16: Building centres of excellence to enhance medical outcomes
Building centres of excellence to enhance medical outcomes and patient care for DHMS members Higher recovery rates and member experience through Channelling members to high-quality centres of the arthroplasty same day discharge programme excellence for targeted surgical procedures Spinal Surgery Pro
Slide 17: Supporting our members through the COVID-19 pandemic
Supporting our members through the NAVIGATING COVID-19 COVID-19 pandemic We Leveraging innovation to deliver the CARING FOR OUR MEMBERS highest quality of care for our members for our members ENSURING THE BEST VALUE HEALTHCARE Driving affordability, quality of care and maximising value for members E
Slide 18: Fluctuations in healthcare utilisation leading to increase in claims expenditure in 2021
Fluctuations in healthcare utilisation leading to an increase in claims expenditure in 2021 2020 Expense Breakdown 2021 Expense Breakdown 100,0% 76,5% 100,0% 89,1% million million healthcare claims healthcare claims 3.5 million fewer 6.9 million more claims than in 2019 claims than in 2020 9,8% Plan
Slide 19: Unique pricing strategy extends competitive position
Unique Uniquepricing strategy pricing extends strategy competitive extends position competitive by balancing position by short- and long- balancing term short- andmember needs long- term member needs Long-term Short-term sustainability affordability Improved solvency position as result of Contributi
Slide 20: Members experienced an effective average risk contribution increase of 2.9% for 2021
Members experienced an effective increase*average risk contribution increase of 2.9% for 2021 DHMS estimated weighted average risk contribution increase vs competitors (2021) Average of 8 largest open schemes: 5.1% DHMS Scheme A Scheme B Scheme C Scheme D Scheme E Scheme F Scheme G Scheme H Announce
Slide 21: R5 billion contribution deferral for 2022
A better than expected claims experience and investment return in 2021 has also allowed for a further deferral in 2022 FAVOURABLE CLAIMS EXPERIENCE Less severe Omicron + high vaccine coverage of at risk members: providing • Lower admission rates financial relief of LOWER THAN EXPECTED COVID-19 COSTS
Slide 22: Contributions are competitively priced across all plan types
Contributions are competitively priced across all plan types, usually with superior benefits DHMS relative contribution differential Comparative affordability by plan type Average 6 largest open medical schemes Extensive Day-to-day DHMS Limited Day-to-day DHMS Hospital DHMS Low income DHMS 2016 2017
Slide 23: Administration expenditure among the lowest in the industry
Members benefit through continuously reducing administration expenditure that is among the lowest in the industry Administration expenditure as % of Administration expenditure as % of gross contribution income (2011 – 2020) gross contribution income (2020) DHMS All other open schemes 9,6% 9,4% 9,4%
Slide 24: Members receive outstanding value from Discovery Health
Our members receive outstanding value from Discovery Health Value generated for DHMS members R2.12 R2.00 R2.02 R2.03 R1.85 R1.88* R1.73 on managed care and administration fees, members of DHMS derived Reviewed by Deloitte *Decrease is result of decrease in utilisation resulting from COVID-19, while
Slide 25: Internal fraud measures have saved the Scheme ~R1bn per annum
Discovery Health’s internal fraud measures have saved the Scheme ~ R1bn per annum Significant fraud savings and recoveries Cumulative halo effect of R11.8 billion (2012-2021) Fraud savings and recoveries (Rm) 1 R472 R469 R464 R423 0,95 R366 R329 R323 R333 Rand (billions) 0,9 R270 R239 0,85 0,8 0,75
Slide 26: Supporting our members through the COVID-19 pandemic
Supporting our members through the NAVIGATING COVID-19 COVID-19 pandemic We Leveraging innovation to deliver the CARING FOR OUR MEMBERS highest quality of care for our members for our members ENSURING THE BEST VALUE HEALTHCARE Driving affordability, quality of care and maximising value for members E
Slide 27: 2021 DHMS financial highlights: the Scheme is financially secure
2021 DHMS financial highlights: the Scheme is financially secure 2020 2021 Measure (R million) (R million) % change pampm1 Gross contribution income 74,538 75,816 1% Less savings contribution income (13,294) (13,357) 0% Net contribution income 61,243 62,459 1% Relevant healthcare expenditure2 (46,65
Slide 28: Growth and sustainability
How do we ensure we are here for our members, tomorrow and into the future? for a sustainable medical scheme: Membership size Growth and sustainability Absolute reserves Financial strength Membership growth Pricing sufficiency Plan movements Prudent investments Contribution increases 28
Slide 29: Growth and sustainability
How do we ensure we are here for our members, tomorrow and into the future? for a sustainable medical scheme: Greater risk pooling means Membership size and accuracy in pricing, leading to stable performance. Growth and sustainability Continuous growth of young and healthy Membership growth and refl
Slide 30: Growth in DHMS membership in 2021 persists in 2022
Growth in DHMS membership in 2021 persists in 2022 Positive DHMS growth DHMS’ increasing membership resulting in market share increase to 57.5% continues into 2022 Open scheme market share beneficiaries (2017-2021) (2020-2022) 57.5% 55.8% 2.78m 2.74m 44.2% 42.5% 2017 2018 DHMS 2019 2020 2021 2017 In
Slide 31: Prioritisation of health cover leading to plan stability
Prioritisation of health cover leading to plan stability and shifts in upgrade trends Large proportion of members satisfied Prioritisation of health cover leading to a with their current plan choice shift in upgrade trends plan movements movements (2019-2022) Upgrade 1,8% 1,4% Downgrade Downgrades 9
Slide 32: DHMS provides more comprehensive in-hospital cover than the market
DHMS maintains cover for members, and continues to provide more comprehensive in-hospital cover than the market In-hospital claims payout ratio increase DHMS provides greater value through higher cover ratios across all providers in-hospital claims payout ratio 2020 claims payout ratio 99,0% 99,1% 9
Slide 33: Financial strength
How do we ensure we are here for our members, tomorrow and into the future? for a sustainable medical scheme: Demonstrates ability to Absolute reserves Financial strength Surplus year-on-year reflects that are in Pricing sufficiency line with expected membership and claims. Ensuring that are maximis
Slide 34: DHMS is well-placed to manage healthcare utilisation uncertainty
DHMS is well-placed to manage healthcare utilisation uncertainty in 2021 and beyond Strong security and surplus to manage 2021 DHMS performance utilisation volatility in 2021 DHMS net healthcare Credit Solvency result 2021 rating ratio R 7 451 Net healthcare result Reserves 2014 2015 2016 2017 2018
Slide 35: Growth and sustainability
How do we ensure we are here for our members, tomorrow and into the future? for a sustainable medical scheme: Membership size Absolute reserves Growth and sustainability Beneficiaries Market share Reserves Solvency Financial strength Value for money on managed Healthy new joiner profile care and adm
Slide 36: Supporting our members through the COVID-19 pandemic
Supporting our members through the NAVIGATING COVID-19 COVID-19 pandemic We Leveraging innovation to deliver the CARING FOR OUR MEMBERS highest quality of care for our members for our members ENSURING THE BEST VALUE HEALTHCARE Driving affordability, quality of care and maximising value for members E
Slide 37: Strong, independent governance structures with majority member-elected Trustees
Strong, independent governance structures with majority member-elected Trustees Our structures To promote desired outcomes in accordance with King IV ACCOUNTABLE TO AN ETHICAL GOOD DHMS CULTURE PERFORMANCE MEMBERS ELECT SERVICES BELONG TO BOARD OF TRUSTEES REGULATES GOVERNS BOARD COMMITTEES EFFECTIV
Slide 38: Roles, responsibilities and fiduciary duties of elected Trustees
Roles, responsibilities and fiduciary duties of elected Trustees Provision of administration and Scheme sustainability managed care services Compliance with the Scheme Strategic risk management Rules, the Medical Schemes Act and other legislation BOARD OF TRUSTEES Stakeholder relations and Innovatio
Slide 39: Medical Scheme industry participation
Medical Scheme industry participation Active participation in LCBO Framework engagements to National Health Insurance submission and update extend scheme coverage DHMS is in support of universal health access Changes are needed to strengthen the health system in anticipation of UHC Public and privat
Slide 40: Supporting our members through the COVID-19 pandemic
Supporting our members through the NAVIGATING COVID-19 COVID-19 pandemic We Leveraging innovation to deliver the CARING FOR OUR MEMBERS highest quality of care for our members for our members ENSURING THE BEST VALUE HEALTHCARE Driving affordability, quality of care and maximising value for members E
Slide 41: Discovery Health Medical Scheme Annual General Meeting
FOR OUR MEMBERS DISCOVERY HEALTH MEDICAL SCHEME | ANNUAL GENERAL MEETING CHARLOTTE MBEWU | PRINCIPAL OFFICER 23 JUNE 2022
Slide 42: DHMS Annual General Meeting
DHMS ANNUAL GENERAL MEETING Chief Executive Officer, Discovery Health | Dr Ryan Noach June 2022
Slide 43: Review of past performance, key trends, COVID-19, maximising member value
Review of past performance Key trends impacting health in 2022 and beyond COVID-19 | the next frontier Maximising DHMS member value 2
Slide 44: Review of past performance
Review of past performance 3
Slide 45: Medical scheme industry shows no growth with DHMS an outstanding outlier
Medical scheme industry shows no growth with DHMS an outstanding outlier Open medical scheme membership has Larger medical schemes more resilient Industry lives remain flat reduced to membership shifts over 2020 Total schemes Total open schemes Percentage change in number of (2017-2021 Q3) (2017-202
Slide 46: Growth in DHMS membership in 2021 persists in 2022
Growth in DHMS membership in 2021 persists in 2022 Positive DHMS growth DHMS’ increasing membership resulting in market share increases to 57.5% continues into 2022 DHMS Market Share DHMS beneficiaries (2017-2021) (2020-2022) 60,0% 57,5% 58,0% 55,9% Market 27 750 56,0% share 54,0% Net 52,0% growth 2
Slide 47: Flight to quality and stability persists
Flight to quality and stability persists, representing positive long-term DHMS outlook Higher levels of Vitality-integrated policies, contributing to Healthy demographic profile of new joining members higher surplus generated Vitality take-up of new DHMS policies (2020-2022) Open Industry DHMS 27.6
Slide 48: Healthcare insurers globally price medical inflation in 2022 at existing levels
Healthcare insurers globally price medical inflation in 2022 at existing levels Global insurers expect COVID-19 to have limited impact on Global trends indicate the return of utilisation 2022 healthcare costs 50 out of 53 insurers in the US stated COVID-19 will have either no impact or an upward imp
Slide 49: Clear evidence of pricing accuracy in DHMS contribution strategy
Clear evidence of pricing accuracy in DHMS contribution strategy Operating loss in 2021 for the rest of the industry points to under-pricing Net healthcare result (R’million) Industry excl. DHMS DHMS R 7 451 R 4 535 VAT change R 968 R 167 R 136 -R 352 -R 979 -R 841 -R 1 183 -R 1 038 2017 2018 2019 2
Slide 50: DHMS pricing approach has led to more affordable contributions
DHMS pricing approach has led to more affordable contributions and better price stability for members Comparing a LOWER increase to a DEFERRED increase Year DHMS increase Next largest competitor increase Dec 2020 R2,200 R2,200 Jan – June 2021 R2,200 R2,301 July – Dec 2021 R2,330 R2,301 Jan – Sept 20
Slide 51: DHMS pricing approach has led to more affordable contributions
DHMS pricing approach has led to more affordable contributions and better price stability for members Comparing a LOWER increase to a DEFERRED increase Year DHMS increase Next largest competitor increase Dec 2020 R2,200 R2,200 Jan – June 2021 R2,200 R2,301 July – Dec 2021 R2,330 R2,301 Jan – Sept 20
Slide 52: DHMS pricing approach has led to more affordable contributions
DHMS pricing approach has led to more affordable contributions and better price stability for members Comparing a LOWER increase to a DEFERRED increase Year DHMS increase Next largest competitor increase Option to temporarily Dec 2020 R2,200 R2,200 underprice lower than anticipated Jan – June 2021 R
Slide 53: DHMS pricing approach has led to more affordable contributions
DHMS pricing approach has led to more affordable contributions and better price stability for members Comparing a LOWER increase to a DEFERRED increase Members would face a “price Year DHMS increase Next largest shock” to realign competitor increase medical claims and contributions Dec 2020 R2,200 R
Slide 54: DHMS pricing strategy supports short-term affordability and long-term sustainability
DHMS pricing strategy favourable to support short-term affordability while balancing long-term sustainability DHMS Industry Taking into account the contribution increase deferral strategy, Members had a lower contribution increase but with no deferral, members paid lower contributions during 2021 an
Slide 55: Strong DHMS outlook for 2022 and beyond
Strong DHMS outlook for 2022 and beyond Healthy demographic profile of new Affordability enhanced through Strong growth continues into 2022 joining members contribution deferral DHMS beneficiaries Contribution increase 2.78m deferred to 2.74m 1 October 2022 amounting to total cash savings of ~R5 bil
Slide 56: Key trends impacting health in 2022 and beyond
Key trends impacting health in 2022 and beyond 15
Slide 57: Evolution of global and local healthcare trends
Evolution of global and local healthcare trends COVID-19 Saturation recovery Growth COVID-19 Tipping point 0 Accelerated change Time 16
Slide 58: Evolution of global and local healthcare trends
Evolution of global and local healthcare trends Trend progression COVID-19 recovery Saturation Structural shift in Growth disease burden COVID-19 discovery Tipping point 0 Accelerated change Time 17
Slide 59: Evolution of global and local healthcare trends
Evolution of global and local healthcare trends Trend progression COVID-19 recovery Saturation Equitable healthcare Growth access COVID-19 discovery Tipping point 0 Accelerated change Time 18
Slide 60: Evolution of global and local healthcare trends
Evolution of global and local healthcare trends Trend progression COVID-19 recovery Saturation Shifts in place of care Growth COVID-19 discovery Tipping point 0 Accelerated change Time 19
Slide 61: Evolution of global and local healthcare trends
Evolution of global and local healthcare trends Trend progression COVID-19 recovery Saturation Growth Digitisation COVID-19 discovery Tipping point 0 Accelerated change Time 20
Slide 62: Evolution of global and local healthcare trends
Evolution of global and local healthcare trends Trend progression COVID-19 recovery Saturation VBC payment arrangements Growth COVID-19 discovery Tipping point 0 Accelerated change Time 21
Slide 63: Evolution of global and local healthcare trends
Evolution of global and local healthcare trends Trend progression COVID-19 recovery Saturation n rde ess s bu ent acc ase em re are f ca ise ang n th c in d eo o arr Growth ati eal lac ift itis nt le h np sh me Dig COVID-19 ral ts i b pay ita ctu discovery f Shi Eq u C u VB Tipping point Str 0 Hyper
Slide 64: 2022 trends in global and local healthcare
2022 trends in global and local healthcare Structural Major shift inshift structural disease in burden burden in recent disease times due to Covid-19 Value-based care payment Move towards value-based arrangements care payment arrangements 2022 healthcare Shifts in place of care Shifts in place of ca
Slide 65: COVID-19 largest clinical driver of claims experience in 2021
COVID-19 was the largest clinical driver of claims experience in 2021, leading to a structural shift in claims drivers Risk amount paid by Discovery Episode Grouper disease chapter- YTD October Other (26.5%) Other (26.4%) Other (26.0%) Other (29.4%) Other (29.8%) Infections (2.1%) Infections (2.1%)
Slide 66: Covid-19 will add 11% to the cost of healthcare in 2022
Covid-19 will add 11% to the cost of healthcare in 2022… …if utilisation for other conditions settles at pre-Covid levels Covid-related benefit expenditure Distribution of Covid-related costs 9 25 % 6,5% 7,6% Other 8 5.5% 7 20 % 15,7% 25,8% Vaccines 6 Total Cost (Billions) 16.0% % of total risk cost
Slide 67: Increase in disease burden and mental health challenges requires a different approach
The increase in disease burden, decrease in physical activity, and mental health challenges requires a different healthcare approach Polychronic patient trends The behavioural health crisis Increase in are on the rise is intensifying mental health challenges Patients with more than 3 chronic conditi
Slide 68: Shifting to value-based care arrangements that align incentives
DH has made great strides shifting to VBC arrangements that align incentives between payers and providers DHMS has advanced VBC contracting Appendicectomy example substantially 58% of hospital spend has Value Based moved to Fee for Service Care VBC arrangements as of 2022 With Without Complications
Slide 69: Accelerated trend towards digital healthcare
Accelerated trend towards digital healthcare with indications that the shift could persist Strong indications that Global telehealth usage DH telehealth usage* changes could persist Global telehealth usage peaked during Regulatory pressure prevented telehealth Major global payers such as United Apri
Slide 70: Digital disruption breaking the Iron Triangle of Healthcare
Digital disruption “Breaking” the Iron Triangle of Healthcare Traditional approach to healthcare – Access, cost and quality cannot all be simultaneously improved An improvement in one Digitisation can area typically results in a decline in at least one of achieve a the others multi-faceted IRON TRIA
Slide 71: Digital health had a record year in 2021
Digital health had a record year in 2021, with major investments in digital health ventures and high levels of activity from big tech… Digital Health Venture Capital Investment Notable Big Tech Health Activity in 2021 Value (USD B) Volume • Microsoft spent $19.7B to acquire Nuance, a 35 729 800 lead
Slide 72: Significant increase in ecosystem strategies globally across insurers
…with a significant increase in ecosystem strategies globally across insurers Insurtech and ecosystem strategies are increasing Many have invested substantially into health ecosystems2 2021 record quarter for insurtech investment activity1 2021 record quarter for insurtech investment activity1 xx He
Slide 73: Manifestation of evolving global and local healthcare trends
Manifestation of evolving global and local healthcare trends Pre-COVID COVID-19 TODAY A hospital A diagnostic lab A doctor’s appointment 32
Slide 74: COVID-19 | the next frontier
COVID-19 | the next frontier 33
Slide 75: Odyssey, Recovery, Hope
COVID-19 | the next frontier ODYSSEY RECOVERY HOPE “A long and eventful “The process of regaining “Expectation that voyage marked by many or returning to a normal something desired will changes of fortune” state of health” occur” 34 Source: Merriam Webster Dictionary; Collins Dictionary
Slide 76: DH and national COVID-19 experience at a glance
ODYSSEY DH and national COVID-19 experience at a glance 20 June 2022 Tests conducted Positive Members Deaths Vaccines cases admitted administered 3,181,203 665,599 74,527 16,035 3,330,132 DH SA 25,597,242 3,986,601 101,604 36,602,354 Testing rate COVID proportion Proportion Case % adult vaccinated o
Slide 77: Recovery
A Clinical recovery B Health system recovery C Workplace recovery RECOVERY “The process of regaining or returning to a normal state of health” 36
Slide 78: Promising signs of COVID-19 nearing an endemic state
RECOVERY Promising signs of COVID-19 nearing an endemic state Evolution of Covid-19’s infection fatality ratio* in England, relative to seasonal flu 20x flu 1.0% 10x flu 0.5% 5x flu 0.2% 2x flu 0.1% IFR for seasonal influenza** Jul Oct Jan Apr Jul Oct Jan 2020 2021 2022 Note: Covid IFR calculated us
Slide 79: Waves have been less severe since SA's Delta-led third wave
RECOVERY Waves have been less severe since SA’s Delta-led third wave Those who are hospitalised have a lower admission acuity and length of stay relative to Delta Case mix of adult COVID19 Proportion of adult COVID19 Average length of stay of adult admissions indexed to Delta wave admissions by ward
Slide 80: Recovered COVID-19 patients experience protracted disruptions to daily living
HOPE Discovery Health experience: Recovered COVID-19 patients experience protracted and significant disruptions to daily living More difficulty in activities of Side-effects present up to 18 months daily living post-infection Change in key activities of daily living for Most common side effects repo
Slide 81: Increased risk of diabetes and cardiovascular conditions after COVID-19
HOPE Substantial increased risk of diabetes and cardiovascular conditions as a result of COVID-19 infection Onset of diabetes mellitus post COVID Onset of cardiac conditions post COVID 2.75x Higher Risk of developing Diabetes 1.5x Higher Risk of developing a Cardiac condition 5x higher if hospitalis
Slide 82: No increased mortality post-infection; higher hospital admission risk
HOPE No evidence of increased mortality in the post-infection period. However, 1,4-times higher risk of hospital admission in the post-infection period Mortality risk Admission risk 0,160% 5,0% 96x higher 0,140% mortality 4,5% 24x higher risk In the admission 0,120% period of 4,0% risk in the infect
Slide 83: 40% reduction in health insurance claims at peak of lockdown
HOPE 40% reduction in health insurance claims at the peak of South Africa’s lockdown in Mar | Apr 2020; utilisation and claims beginning to return to 2019 levels Discovery Health annualised change in US hospital utilisation vs claims costs vs 2019 2019 utilisation Change in claims cost Surgical proc
Slide 84: Maximising DHMS member value
Maximising DHMS member value 43
Slide 85: Maximising DHMS member value
Maximising DHMS member value Addressing Addressing Shifting reduction in changing place of screening & disease care prevention burden Product innovation Predictive servicing Stakeholder engagement 44
Slide 86: Reduction in prevention and screening, less so for Vitality members
Reduction in prevention and screening | less so for Vitality members Mammograms per Pap smears per 32 42 -12% -10% (2019 base) 27 (2019 base) 32 22 22 -14% 17 -13% (2019 base) (2019 base) 12 12 7 2 2 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Wellness events per HIV screenings per 20 25 20 15
Slide 87: Hospital re-admissions prevention using predictive analytics
Hospital re-admissions prevention using predictive analytics Predictive model stratifies member In hospital case Out of hospital suite of Ten identified conditions risk of re-admission management interventions Sub-acute facilitation Post-discharge phone call Mental Health review Follow-up appointmen
Slide 88: Identification and monitoring of members living with diabetes
Sophistication in identification and monitoring of members living with diabetes Better outcomes for members with diabetes through Proactive AI screening for diabetic retinopathy shared value model of care 1st Provider paid incentive for ‘in range’ or improved Improved patient to launch EyeArt AI sys
Slide 89: Vitality cancer score: the future of early diagnosis
Vitality cancer score | the future of early diagnosis Cancer risk score to enhance the mechanism Target members at higher risk for specific cancers for behaviour change with more regular screening 1 Models to predict each member’s: + BREAST CANCER MODEL COLON CANCER MODEL + ERROR § Cancer frequency
Slide 90: Well developed screening programmes positively impact stage at diagnosis
Well developed screening programmes positively impact on stage at diagnosis Establish screening programmes for breast and cervical cancers lead to higher Colorectal screening less established, screening rates and earlier diagnosis leading to later stage diagnosis Breast cancer screening: Cervical ca
Slide 91: Value based care interventions for improved outcomes
Value based care interventions for improved outcomes Specialist Chronic Disease Primary Care (Arthroplasty) (Diabetes, CMO & GPs) (Capitation model & Premier Plus) Type 1 & 2 Diabetes model Change in arthroplasty admission rate pre- and post- network All of Discovery CMO patients +260% 90% +40% 80%
Slide 92: Mental Health: depression drives the increase in prevalence
Mental Health | Depression is the primary condition driving the increase in mental health prevalence and contributed 10.7% to the overall increase in prevalence of 19.1% (2017-2021) Mental Health Condition Split* Top conditions increasing in prevalence 12.5% by Contribution to Increase (CTI) and CAG
Slide 93: Mental Health: setting of care shifting away from in-patient care
Mental Health | The setting of care is shifting away from in-patient care With a higher proportion of mental health care sought out of hospital and virtual care is on the increase % OH proportion of total spend IH PLPM OH PLPM 64.4% 64.5% 59.9% Key changes that may have 61.2% 59.9% influenced the se
Slide 94: Mental Health: outpatient care made more accessible through primary care programme
Mental Health | outpatient care was made more accessible through a structured primary care programme Mental Health Care Programme Primary Care Programme Outcomes Enrolments increased by 17x Members access the programme through the Premier Plus 6000 GP network and psychologist network 5000 4000 3000
Slide 95: Launch of KeyCare Start Regional Option
Launch of KeyCare Start Regional Option A regional EDO – underpinned by Integrated Care Delivery model and easily accessible primary healthcare Integrated Care Model Easy Access to Care through Online Practice Most Affordable Care Tzaneen Polokwane Mbombela Secunda & Ermelo Leveraging the digital to
Slide 96: Shariah Compliant Arrangement
Shariah Compliant Arrangement DHMS offers the first Shariah compliant Medical Scheme Arrangement, available on all health plans 2020 : 1591 DHMS Members opted in over 3 weeks » 175 000 potential members on DHMS* *This is an approximation based on internal DHMS data 56
Slide 97: New digital tools to meet the shift in digital servicing demands
New digital tools to meet the shift in digital servicing demands Proactive service initiative Engagement channels (2021) WEB Educating and equipping members with available tools at the start of their journey 50.5% APP AI AI 37.5% Predicted Digitally Resistant Maternity New business VIRTUAL AGENT pro
Slide 98: Enhanced communication platforms for a seamless digital servicing experience
Enhanced communication platforms to support a seamless digital servicing experience Enhancements to member Simpler engagements for brokers communication platforms Smart View SMS Ask Discovery Enhanced New Business Online Journey Comprehensive, fully digital DIGITAL UPTAKE PERCEPTION Get immediate an
Slide 99: Exceptional service scores recorded across stakeholders
Exceptional service scores recorded across stakeholders Industry Recognition and Awards Global Benchmarking (2021) FIRST CALL RESOLUTION (FCR) AS RATED BY OUR CUSTOMERS BENCHMARK 38% EMPLOYER RATING Discovery 8,6 MMI 8,1 LEADERS 77% Medscheme 8,0 In dust ry 7,9 AWARDED TO DISCOVERY 75% DISCOVERY PRO
Slide 100: Discovery Health in support of universal health access
Discovery Health is in support of universal health access, where both public and private players provide equitable access to quality care Discovery Health (DH) is entirely in support of the aspirations of the NHI Bill which encompass broader access to equitable health care for all South Africans. Co
Slide 101: Summary: Discovery Health and DHMS in 2022
SUMMARY: Discovery Health and DHMS in 2022 DHMS strengthens its Better outcomes for members with diabetes through competitive position for 2022 shared value model of care Affordability enhanced Addressing Addressing Shifting Members reduction in changing effectively paid place of screening & disease
Slide 102: DHMS Annual General Meeting
DHMS ANNUAL GENERAL MEETING Chief Executive Officer, Discovery Health | Dr Ryan Noach June 2022
Discovery Health Medical Scheme — Shareholder Meeting (June 2022) on 6ix