CIMAS wins licence case

The High Court has barred Government from cancelling CIMAS Medical Aid Society's operating licence pending finalisation of its dispute with Corporate 24 Group of Hospitals.

Justice November Mtshiya set aside the decision by Deputy Minister of Health and Child Care Aldrin Musiiwa to cancel CIMAS' licence.

The threat of CIMAS, one of the largest medical aid societies in the country, losing its licence had caused panic and chaos among the membership but the court set the decision aside.

The two companies entered an agreement whereby CIMAS members would be treated at Corporate 24 Hospital using their valid medical aid cards and CIMAS would later pay for the services directly to the hospital.

CIMAS accused Corporate 24 of processing fraudulent medical aid claims and exaggerating the figures, a development that temporarily ended the direct payment system between the two firms.