Mediclinic records solid half-year performance as it adapts to Swiss regulations
Companies / 17 October 2019, 3:30pm / Sandile Mchunu
DURBAN – Mediclinic International rose to its highest level in nearly a year after the diversified private healthcare services reported a solid performance in all of its divisions for the six months to end September.
The group said on Wednesday that its revenue in South Africa rose 7 percent to R8.56 billion during the period from R8bn last year.
It said it projected that its earnings before interest, tax, depreciation and amortisation (Ebitda) would increase 5 percent during the period.
Chief executive Dr Ronnie van der Merwe said the performance is in line with expectations.
“At all three divisions, our core acute care business is being supplemented by our continued expansion across the continuum of care,” Van der Merwe said.
The group said in Southern Africa revenue increased 7 percent, with an increase in inpatient bed days sold of 2.7 percent, in line with expectations.
In Switzerland, Hirslanden delivered revenue growth of around 5 percent, with inpatient admissions benefiting from the contribution of Clinique des Grangettes.
The group said the division continued to make good progress in adapting to the regulatory changes affecting the Swiss healthcare system.
“Performance was in line with expectations and incorporates the impact of identified clinical treatments transferring from an inpatient to a lower outpatient tariff. This process has gradually occurred across Swiss cantons over the past two years, with official national implementation effective from January 1, 2019,” the group said.
Van der Merwe said Hirslanden delivered good revenue growth and a broadly stable Ebitda margin.
“At Mediclinic Southern Africa, patient volumes were in line with expectations, and we continue to invest in initiatives to further enhance our clinical standards,” he said.
Mediclinic Southern Africa operated 53 hospitals, five sub-acute hospitals and nine day-case clinics across South Africa and three hospitals in Namibia with more than 8 500 inpatient beds at the end of September.
Mediclinic Middle East reported 8.5 percent increase in revenue and inpatient and outpatient volumes in the division were up 9 percent and 5.5 percent respectively.
The group said revenue growth was driven by the continued ramp-up of Mediclinic Parkview Hospital in Dubai and a gradual improvement in the Abu Dhabi business with Mediclinic Airport Road Hospital delivering a strong performance.
In the UK, where the group holds a 29.9 percent stake in Spire Healthcare Group, it received a profit of £7.1 million (R32m) in the six months to June.
Mediclinic rose 3.83percent on the JSE on Wednesday to close at R70.50.