Mediclinic battles to staunch flow of doctors out of Middle Eastern group
Mediclinic’s share price fell 7% on Tuesday morning after it warned investors it was battling to stem the haemorrhaging of doctors and patients from the Middle East hospital group it acquired for about R23bn in October 2015. The private hospital owner did not provide any forecast of the earnings it expected to report on May 24, but repeated past warnings of the string of problems it had encountered with the Al Noor group it used to reverse-list on the London Stock Exchange. "As previously announced, in the 12 months leading up to the Al Noor combination a significant number of doctors departed from the business and this trend continued into the start of the current financial year," the company said in Tuesday’s statement. Changes to the government’s health insurance programme, called Thiqa, aimed at encouraging citizens to use state rather than private hospitals have hindered Mediclinic’s expansion into the United Arab Emirates. "On July 1, a 20% co-payment was introduced for all Th...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.