The share price was just as rewarding, and Mediclinic was one of the best-performing stocks on the JSE for many years - blue blood and very popular. By early 2017 the cracks became evident and the company started battling on all fronts, as it faced regulatory constraints to domestic expansion and struggled to succeed abroad.
Last week, market players breathed a sigh of relief at the first sign of improvement; Mediclinic published an encouraging trading update for the six months to September 2019. Revenue was up 6.5percent in constant currency terms during the period. Mediclinic Southern Africa saw an increase of 2.7percent of inpatient bed days sold during the period, while inpatient and outpatient volumes in Mediclinic Middle East rose 9 and 5.5percent respectively.
Chief executive Ronnie van der Merwe said at all three divisions of its core acute-care business is being supplemented by continued expansion across the continuum of care. Analysts were concerned with its ongoing regulatory problems in Switzerland, but Hirslanden continued to make good progress in adapting the business to the regulatory changes affecting the Swiss healthcare system.
Hirslanden has initiated a new day case surgery strategy, which focuses on a lower cost and more efficient service delivery model. It continued to attract additional clinical professionals, delivered ongoing cost management and efficiency savings, and advanced the Hirslanden 2020 strategic project. Hirslanden delivered growth of around 5percent in both revenue and inpatient admissions