Our Business
Material matters that guide
our focus
Our Business
Material matters that guide our focus
4. Financial and organisational sustainability
Importance to SANBS in delivering value
The environment we operate in remains challenging, with poor economic growth, high unemployment, constrained healthcare budgets and rising costs all straining our self-funded, not-for-profit model. As South Africa’s largest provider of blood products and services, SANBS depends on strong governance, leadership, business continuity planning and stakeholder management to maintain cost recovery.
Under our Sustainable Business Model: Financial Sustainability strategic pillar, we are embedding a transparent cost model for products and services, deploying a robust billing system through the Order-to-Collect programme and enhancing budgeting and monitoring mechanisms to optimise financial performance and resource allocation. These measures ensure that our surpluses, including any reserves held, support long-term stability and fair, defensible pricing for our customers.
Risks to value creation
- Outdated cost models and failure to bill accurately or collect debt promptly
- Macroeconomic volatility and reduced foreign support
- Political and regulatory uncertainty, supply chain disruptions and high fixed costs
- Insufficient skills capacity and poor stakeholder engagement with government and medical schemes
- Cash flow shortfalls, inability to meet demand, reputational damage and regulatory non-compliance
Opportunities and strategic response to create value
Implement a robust billing system with transparent cost models to improve accuracy, accelerate revenue collection and support a defensible pricing strategy
Leverage the SAP-Meditech integration to complete the order-to-collect and procure-to-pay initiatives, driving back-office efficiency and strengthening cash flow
Maintain tariffs at or below inflation to reinforce trust with medical schemes, government, and private customers
Formalise strategic partnerships with medical schemes, the Department of Health and regulatory bodies to secure timely payments and protect Prescribed Minimum Benefit status
Enhance budgeting processes, key performance indicators and combined assurance governance to oversee financial performance and resource allocation
Develop a defensible business model and a reserves justification position paper to formalise cash reserve and surplus management
Outlook for the year ahead
- Launch the new billing programme and cost model initiative to increase collections
- Advance refinements in the order-to-collect and procure-to pay processes to further optimise cash flow and procurement efficiency
- Deepen collaboration with medical schemes and government to accelerate claim settlements
- Keep pricing aligned with consumer price inflation and manage operating costs within inflation targets
- Finalise a cash reserve strategy and surplus deployment framework
- Explore targeted pricing adjustments to pass through operational savings to clients, balancing fair pricing with the need to preserve reserves and support long-term sustainability
Top risks
Capitals impacted
Strategic priorities
