PSMI restructures, to save $2m


Pamela Shumba Senior Reporter
THE Premier Service Medical Investments (PSMI) has merged its 13 companies into one company, in a restructuring exercise that is meant to improve efficiency and save $2 million monthly. PSMI’s executive director corporate services Victor Chaipa announced the new development at the medical services company, which is a subsidiary of Premier Service Medical Aid Society (PSMAS).

He said patients should now expect a marked improvement in service provision.

Chaipa said the company had been operating 13 companies, which resulted in operational and service inefficiencies resulting on high cost structures and failure to optimise on internal synergies.

Some of the companies which have been collapsed are Dental Clinics, Emergency Medical Rescue Ambulance Services, Medical Healthcare.

He said these inefficiencies impacted negatively on the organisation’s operations. “PSMI wishes to inform its stakeholders and members of the public, that it is undergoing organisational and processes redesign which resulted in the merging of its 13 companies into one company with divisions under it,” said Chaipa. “These processes yielded reduced operating costs and improved service efficiency.”

He said it was anticipated that the realigning and re-organisation of PSMI will save the company more than $2 million a month and these resources will be channelled towards improving service to the patients.

“During the re-organisation process, and to achieve maximum benefit, PSMI decided to restructure salaries for all employees including management and all legal processes were followed.

“The works council, which represents both management and general staff, agreed to the exercise and fully endorsed the salary restructuring process as a way to preserve jobs and improve our cash flows.”

He said it should be noted that medical funders are failing to pay providers on time, a development that has resulted in cash flow going down by more than 50 percent.

“In the same vein, PSMI has instituted other measures to improve cash flows including introducing a marginal co-payment to members of medical funders defaulting on payments to PSMI.

“This will result in improvement in service by way of making sure drugs and consumables are available at all times,” said Chaipa.

He indicated that the restructuring measures have been put in place to ensure PSMI does not retrench workers, like what most companies in the country have been doing.

“It’s, however, important to emphasise that the company must live within its cash flows in the tough environment we’re operating under. Patients should now expect a huge and sustainable improvement in our service provision which will compare favourably with other private sector healthcare service providers in the country,” said Chaipa.

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