Materiality summary

A sharp rise in the burden of disease in all markets makes the healthcare sector relatively resilient to economic cycles, but becoming increasingly underfunded by governments as populations age.

Leading the top half of the materiality table are ethical, governance and customer issues:

• Moral DNA of the organisation
• Patient satisfaction
• Inducements, between hospitals, pharmaceutical firms and doctors, unnecessary and/or illegal procedures, potentially inflated claims as to the efficacy of drugs, overprescription and the risk of multi-drug resistance and infection
• Anti-competitive behaviour that has led to the local Health Market Inquiry in SA
• Responsible manufacture and supply in the pharmaceutical industry
• Equitable access to healthcare for the poor, including fair pricing of pharmaceuticals
• Competition for skilled doctors and medical practitioners
• Patient ID protection and confidentiality

Results

• Hospital groups show more mature leadership than SA pharmaceuticals, though Novo Nordisk by far best reporter
• Netcare shows clear and consistent focus on patient care as the core of its business strategy. Life Healthcare shows good links between challenges and strategy, but lacks frankness and clarity, while Mediclinic drives performance in care through data, but suffers from a compliance approach to responsibility.
• Multinational drug producer Novo Nordisk only pharmaceutical manufacturer to show mature and decisive leadership with thoughtful and detailed reporting
• APN heads poor performing SA pharmaceuticals, but moral claims poorly substantiated.
• Generally inadequate response to equitable access to healthcare services across the board, but APN particularly insincere, with a disconnect between stated commitment and response
• NVO most responsible engagement with drug ethics issues, while SA pharmaceutical firms offer nod to legislative compliance in general, but fail to offer meaningful response

See the executive summary for individual company scores and materiality weightings. Buy our full report for detailed analysis and substantiation of our analysis.