South Africa - Cape Town - 19 November 2020 - Netcare hospital N1 city. Netcare is a South African health care company. It is the largest provider of private healthcare in both South Africa and the United Kingdom. It acquired a controlling stake in the UK's General Healthcare Group in 2006, and provides services to the National Health Service via its subsidiary General Healthcare Group. . /Picture Courtney Africa/African News Agency(ANA)
South Africa - Cape Town - 19 November 2020 - Netcare hospital N1 city. Netcare is a South African health care company. It is the largest provider of private healthcare in both South Africa and the United Kingdom. It acquired a controlling stake in the UK's General Healthcare Group in 2006, and provides services to the National Health Service via its subsidiary General Healthcare Group. . /Picture Courtney Africa/African News Agency(ANA)

Netcare grapples with fallout from pandemic

By Dhivana Rajgopaul Time of article published Nov 24, 2020

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DURBAN - NETCARE Group reported a 19.8 percent decline in total patient days for the year to the end of September as the private healthcare provider grappled with the fallout from Covid-19.

Its acute hospital patient days declined by 19.6 percent, and patient days at its Akeso clinics fell by 21.2 percent.

The overall occupancy levels in its hospitals declined to 55 percent for the year, down from 71.6 percent last year.

Chief executive Dr Richard Friedland said yesterday that in September the group saw the most robust non-Covid-19 activity since the start of the pandemic, with a month-on-month increase of 10.8 percent reported in acute hospital patient days in October.

“We continue to see a steady improvement in average acute occupancy levels. Our current average weekday occupancy is trending at approximately 57 percent. We have seen significant improvement in the performance in Akeso since September, and occupancy is currently at 66 percent,” Friedland said.

Revenue declined by 12.7 percent to R18.84 billion. Normalised earnings before interest, tax, depreciation and amortisation (Ebitda) were 52.4 percent lower at R2.09bn, with the Ebitda margin contracting to 11.1 percent.

The group estimated it lost R3.7bn in revenues and a loss of R2.3bn in Ebitda due to Covid-19. Profits after tax declined by 78.1 percent to R515 million.

Adjusted headline earnings per share declined by 72.2 percent to 47.6 cents a share.

BUSINESS REPORT

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