Discovery Health announced on Friday that Destiny Health, its US unit, was ending its three-year joint venture with Tuffs Health Plan.

The joint venture sold the Liberty health care plan to the Massachusetts market. Discovery said that the plan would now be closed to new business, while the existing 10 000 members would be serviced until the end of their plans.

Business Day noted on Monday that Discovery has faced a number of problems with its US operations.

Destiny Health reported a loss of R80-million for the half year to December 2005 from a previous loss of R41-million in the prior year.

Discovery CEO Adrian Gore said: "Our partnership has fostered strong acceptance of the concept of consumer-directed health care in Massachusetts and sparked continued innovation within our companies.

"However, the strategic interests of each party have diverged over time, and we have recently made the mutual decision to wind the alliance down."

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