The implementation of BEE in Gauteng-based private hospital groups

Abstract

The South African government is committed to breaking the cycle of underdevelopment and marginalisation of black people and is utilising Broad-Based Black Economic Empowerment as a key strategy to achieve its objectives of creating a fair and just society. The South African private hospital industry is highly competitive and regulated and the jury is still out on whether and how this industry is transforming. This research sought to assess the implementation of BBBEE and its importance to corporate strategy in selected private hospital groups based in Gauteng. The results of the research will add to the body of knowledge and practice regarding the implementation of BEE in South Africa. The literature suggested that there was little progress being made on BBBEE and qualitative research methods were utilised to find out if this was the case. The key findings were that participants felt that their hospital groups were doing in meeting the DTI BBBEE targets, the hospital groups found it difficult to meet targets on preferential procurement, ownership, management control and employment equity. Corporate strategy approaches were utilised by the previously white-owned groups. Strategies employed were successful and BBBEE was of strategic importance to the hospital groups. Black-owned companies were not making any concerted efforts to implement BBBEE. Recommendations are made to government, private hospital groups and for future research.Copyright