Performance against strategy

To be the cornerstone of healthcare services in South Africa, through the gift of life

Administration Rigour

Aspiration

Build administrative rigour in all order to pay processes

Strategic Priorities
  • Manage bad debts rigorously by enhancing debt collections tactics
FY2021 Highlights
  • Although the continuity plans have yet to be formally set, we were forced to invoke them twice this year as separate fires consumed buildings housing a donor centre and a blood bank, causing very minor disruptions. In both cases, operations were successfully moved to other sites, made possible by the collaborative efforts of all divisions to resume operations swiftly. Donors were redirected to other donation centres, while hospital patients received blood from other nearby blood banks
  • Additional business continuity measures were successfully implemented on a larger scale during the Mt Edgecombe move
Contributing to long-term sustainable value
Related material matters
  • Future changing world
  • Sustainability
  • Transformation/change
Creating value for stakeholders Mission Metrics
Low debtors’ days ensure that funds are available to fulfill SANBS’ purpose Cost
Debt write offs result in financial losses impacting the future price of blood Cost
Achievement of targets that are set Reliability, Quality, Cost & Coverage
IT service uptime maximises ability to render efficient operations Reliability & Quality
Sufficient cash to fund ability to fulfil purpose Reliability & Cost

KEY MEASURED INITIATIVES

Target achieved/exceeded
new initiative on track against current plan (no concerns) Target achieved/exceeded Improvement YOY No concerns yet Below target
Debtors’ days
Target IR 2019 IR 2020 Progress April 2020 to March 2021 Outlook for the year ahead 2021/2022 Target
140 days
  • 174
  • 150.9 days
  • 161 days
  • Average collections decreased from R319m to R298m per month due to impact of Covid-19 lockdowns on debtor collections. The Debtor balance increased from R1.621bn to R1.642bn
  • 140 days
  • Provincial DoH increased payments during the current year. Additional payments received from 3 provincial departments following final letters of demand for amounts >120 days. Increased focus on medical aids, resolving long outstanding claims, and minimising number of rejections on new claims. Ongoing strategic engagements with CFO’s of the provincial DoH, to ensure payments to SANBS prioritised. New debt collection company procured to assist with collections from private patients. Debtors Task Team meets weekly, which includes CEO, Acting COO, Medical Director, and several senior managers, to continue, with focus on debtor collections and any operational challenges to debt collection
Movement in the provision for bad debts as a % of revenue
Target IR 2019 IR 2020 Progress April 2020 to March 2021 Outlook for the year ahead 2021/2022 Target
6%
  • 5.60%
  • 4.30%
  • 2.93%
  • 6%
Surplus % of Revenue - Overall measure for profitability
Target IR 2019 IR 2020 Progress April 2020 to March 2021 Outlook for the year ahead 2021/2022 Target
2.4%
  • 7.90%
  • 9.1%
  • 6.60%
  • Stringent cost control ensured surplus above target
  • 2.5%
Availability of critical IT services during agreed operating times
Target IR 2019 IR 2020 Progress April 2020 to March 2021 Outlook for the year ahead 2021/2022 Target
98.0%
    • LAN = 97.38%
    • WAN = 97.44%
  • 98.5%
  • 98.4%
  • 98%
  • Maintain stability of our core IT services under remote work conditions and against a backdrop of increased exposure to cyber threats
Net cash reserves
Target IR 2019 IR 2020 Progress April 2020 to March 2021 Outlook for the year ahead 2021/2022 Target
R1.6 bn
  • R1.63bn
  • R1.948 bn
  • R1.8bn
    • Stringent cost controls resulted in a higher bank balance
    R1.6bn
Business Continuity Management (BCM)
Target IR 2019 IR 2020 Progress April 2020 to March 2021 Outlook for the year ahead 2021/2022 Target
100% complete. Plan
  • 85% complete
  • Phase 1 of the project, which involved 26 departments, concluded with the completion of the business impact analysis (BIA) and business continuity strategy (BCS), which were reviewed and approved by the divisional leadership
  • Completion of BCPs for 26 departments and remaining 14 departments to formulate a consolidated BCP plan. Plans will be tested via a disaster simulation to determine their practicality and applicability
Staff cost as a % of Total Costs
Target IR 2019 IR 2020 Progress April 2020 to March 2021 Outlook for the year ahead 2021/2022 Target
44%
  • 42%
  • 44.20%
  • 44.55%
  • No major changes envisioned on proportion of staff costs as % total costs.

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