You are granted the right to install the update on your own computer/computers subject to the limitations of the copy protection software. This update is for your practice only. You shall not permit any other person to use this update and Optimax does not hold itself responsible for any software corruption if used by an illegal user.

1. Due to various names used by everyone for the Medical Schemes we require you to link your Medical Schemes to the various tariffs by adding the following number in the appropriate field.

Call up “ Status Medical Scheme” and in the field next to “ Link all subplans to code”  select “1550”  from the dropdown box.

2. Then click on the “ Link all subplans to code” button. The Status tariff will now be applied to Status Medical Scheme. Please note, every medical scheme must have a subplan.

3. Repeat this process with the following Medical Schemes :

Medihelp (2003 Tariff + 4.9% on Fees) - 1560

Omnihealth - 1570

We understand the effort involved in linking all the scheme but due to non standardization of scheme names this is the only way it can be resolved. We will continue to provide linking numbers to you. Once this link is created, when then have a powerful tool in providing us with a means of automatically making tariff changes to your medical aids. The effort you put in now will certainly pay off in the future.

4. Please ignore the message “ OLTP enabled” or “OLTP not enabled” - not live yet. We are testing at beta sites.

Enhancements in this Update:

• Appointment Book
• DHS Reservation number for MediCover
• Cost Price may be displayed on Frame label( in your own coded )
• Tariff files for Status, Medihelp Omnihealth
• Reports – have been expanded to provide more information
• SMS Internet dial up – may now be protected at user level
• Lab Orders – print in Dot Matrix mode

The draft Regulations are open for public comment for three months as from the date of appearing in the Government Gazette which was the 16^th January.

The impact of these Regulations are far reaching. To summaries the Regulations are as follows : 

• All discounts, bonusing and sampling are banned from the 2^nd May 2004.
• The current listed Manufacturers exit price ( as per the Blue Book) must decrease by not less than 50%.
• This will be the Single Exit Price. (SEP)
• This price may only increase once per year.
• This price must appear on the pack.
• Distributors & Wholesalers may charge a fee of 15% with a maximum of R6.00
• Where a Schedule 0 medicine or Scheduled substance is sold at a place other than a pharmacy, a maximum fee of 16% of the SEP may be charged.
• Where the medicine is obtained via a wholesaler or distributor the fee payable to the wholesaler or distributor may be added to the maximum fee.

Impact on the Healthcare Chain

The impact on the multibillion rand healthcare chain in the RSA is devastating. There are three major players – the impact is such:

• Manufacturers – must reduce their prices by at least 50%. Possible for a few but impossible for most.
• Wholesalers – own the goods they purchased at full price & must now sell at half price plus a maximum distribution fee of R6.00. Will have to seriously curtail their services to survive. Means that deliveries of medicines whether urgent or not may only be made once per week.
• Pharmacies – may charged a fee of 24% on the SEP but cannot pass on the wholesaler fee. In essence pharmacies will receive on products over R100 in cost, a fee of R24-R6 =R18.00. Pharmacies will not be able to carry stock of expensive drugs, provide credit to medical schemes as the only margin made will be the R18.00. Bearing in mind that the prices will be halved, the margin effectively will drop substantially.

MHS has been contracted by the Pharmaceutical Society of SA to perform a study on the impact on retail pharmacy and produce an alternative proposal which will be delivered to the Pricing Committee on the 18^th of March. Our preliminary investigation using data from hundreds of pharmacies, millions of prescription records from Administrators and audited financials predicts a disastrous future for retail pharmacy. Should the draft Regulations come into effect unchanged, at least 85% of all pharmacies will not survive for very long. This will dry up the delivery of healthcare as many wholesalers will also disappear and the impact will not by pass the dispensing doctor.

Impact on Optometrists

Optometrists besides lenses and frames, sell Opthalmic drops and Contact lens solutions and associated products. I, initially believed that Contact lens solutions were not classified as medicines, but after investigation found that they are registered in terms of Act 101 and are therefore Schedule 0 medicines. Obviously, Opthalmic drops are medicines and fall into either Schedule 0 or Schedule,12,3 depending on the active ingredients.

This means that all of the above SEP and fees chargeable apply to Opthalmic drops/ointments and contact lens solutions and related products sold by practices. As this is often a large percentage of turnover the impact needs to be evaluated.

Lets take a few examples :

Today’s scenario

Scenario on the 2^nd May 2004 assuming all purchases are made from manufacturers:

The implications are far reaching – not only are manufacturers, wholesalers & pharmacies affected but any seller of medicine. This covers the entire spectrum – Pick & Pay, Clicks, Spar etc , plus all store – the garage shops, 711s, and even the corner supermarket.

Optimax Version 1.3.83 - Latest News! Congratulations on being able to receive your update via the Optimax website. We have moved into a new era – no more late arrivals or lost CDs.

Optimax, the software written by Optometrists for Optometrists continues to provide you with the latest and most comprehensive practice management software. We have great pleasure in issuing you another update with the latest enhancements.

We enclose for your attention, our Version 1.3.83. This update contains important new features and it is essential that all persons, ranging from Proprietor, Manager and the Optimax Computer operating staff read this letter. This update also contains the suggested tariff list as published by the Optical Assistant plus the Discovery, Old Mutual and MedScheme, MX Health and PPN Tariffs.

Please do not hesitate to contact our support staff on 011 – 548 8050 or e-mail us at optimax@mhs.co.za

Internet & E-mail for R19.99 pm

OPTIMAX - the complete optometric solution

Important

Dial into the Optimax website ( www.optimax.mhs.co.za) register to obtain your password and follow the instructions as per the screen.

You are granted the right to install the update on your own computer/computers subject to the limitations of the copy protection software. This update is for your practice only. You shall not permit any other person to use this update and Optimax does not hold itself responsible for any software corruption if used by an illegal user.

Follow the instructions carefully. The update may be run immediately – there is no reason to wait for 1^st January, 2004 only the prices must be updated on 1^st January.

1. Go to "File" – then "Price Updates" then click " Prices Updates for 2004" The new price lists for Discovery, MedScheme, Old Mutual, Mx Health & PPN as well as the suggested tariff as published by the Optical Assistant will be downloaded.
   
2. Due to various names used by everyone for the Medical Schemes we require you to link your Medical Schemes to the various tariffs by adding the following number in the appropriate field.
   Call up Discovery Medical Scheme and in the field next to " Link all subplans to code" select "1000" from the dropdown box.
   
3. Then click on the " Link all subplans to code" button. The Discovery tariff will now be applied to Discovery Medical Scheme. Please note, every medical scheme must have a subplan.
   
4. Repeat this process with the following Medical Schemes :
   Old Mutual - 1020
   All Schemes administered by MedScheme - 1030
   Polmed - 1500
   Medcor - 1510
   Pathfinder - 1520
   Mimed - 1530
   Automed - 1540
   We understand the effort involved in linking all the scheme but due to non standardisation of scheme names this is the only way it can be resolved. We will continue to provide linking numbers to you. Once this link is created, when then have a powerful tool in providing us with a means of automatically making tariff changes to your medical aids. The effort you put in now will certainly pay off in the future.
   
5. Please ignore the message " OLTP enabled" or "OLTP not enabled" - not live yet. We are testing at beta sites.