How it works
Designated service providers (DSP) explained
By Naledi Mokoena · 4 min read · Updated 24 June 2026
A designated service provider (DSP) is the hospital, doctor or pharmacy your scheme chooses as the preferred provider for a benefit, usually for PMBs and chronic medicine. Using the DSP is what keeps PMB care paid in full - go to a non-DSP without a valid reason and the scheme can charge you a co-payment.
DSPs are central to how schemes control costs and to how you get full cover. Understanding when you must use one, and the few times you can use someone else, protects you from co-payments. This short guide explains it.
What a DSP is
A DSP is a provider the scheme has contracted at agreed rates for a specific benefit. There are often DSPs for:
- PMB conditions (hospital and treatment)
- Chronic medicine (DSP pharmacies)
- Specific procedures
Your scheme tells you the DSP for each benefit. Using it means the scheme pays the negotiated rate in full.
Why the DSP matters for PMBs
PMBs must be paid in full, but the law lets schemes require you to use the DSP for that condition. If you voluntarily use a non-DSP for a PMB, the scheme can apply a co-payment - so the DSP rule is the catch behind "paid in full". Using the right DSP is the single most reliable way to avoid PMB co-payments.
When you can use a non-DSP
You can use a non-DSP without penalty in valid situations, such as:
- A genuine emergency where the DSP was not accessible
- The DSP not being available within a reasonable distance or time
- The DSP being unable to provide the required treatment
In these cases the scheme must still cover the PMB in full. Keep evidence of why the DSP could not be used.
DSPs for chronic medicine
Chronic medicine often has to come from a DSP pharmacy to be paid in full. Using a non-DSP pharmacy can trigger a co-payment even though the medicine itself is covered. Many schemes use a courier or retail pharmacy network as the DSP, so register your chronic medicine with the correct pharmacy to avoid paying in.
Frequently asked questions
What is a designated service provider?
A DSP is the hospital, doctor or pharmacy your scheme chooses as the preferred provider for a benefit, usually PMBs and chronic medicine. Using the DSP keeps that care paid in full.
Why must I use a DSP for PMBs?
PMBs must be paid in full, but the law lets schemes require the DSP for the condition. Using a non-DSP voluntarily lets the scheme apply a co-payment, so the DSP keeps PMB cover full.
What if there is no DSP near me?
If the DSP is not accessible within a reasonable distance or time, you can use another provider and the scheme must still cover the PMB in full. Keep evidence of why the DSP was not usable.
Do I have to use a DSP in an emergency?
No. In a genuine emergency you use the nearest facility, and the scheme must cover the PMB emergency in full even if it is not the DSP. Notify the scheme afterwards.
Why was my chronic medicine not fully paid?
Often because you used a non-DSP pharmacy. Chronic medicine usually has to come from the scheme's DSP pharmacy to be paid in full. Register with the correct pharmacy to avoid the co-payment.
Can I choose any doctor on medical aid?
For general care often yes, but for PMBs and chronic medicine the scheme can require its DSP. Using a non-DSP without a valid reason can lead to a co-payment on that care.
