Netcare falls as revenue rises
ospital group’s shares slide 6.23 % after trading update reveals headline earnings are expected to drop
Hospital group Netcare’s share price dropped 6.23% to R25.60 following the release of the group’s pre-close trading update for the period from October 1 2016 to the end of March 2017. The share price has been falling for three weeks in a row, declining 19.5% in March. The trading update showed revenue for the group rose 7.7% for the first half of the 2017 financial year despite a decrease in patient days. With 114 hospitals and more than 13,300 beds, Netcare operates the largest private hospital networks in SA and the UK. Its market cap is just more than R38.57bn. Netcare said revenue per patient rose as did an associated increase in drugs and surgical revenue per patient day. Higher revenue occurred against a 1% drop in patient days. The group said lower than expected patient days put pressure on payroll management, made worse by the greater complexity of admissions. "This increased complexity also resulted in high consumption of more expensive drugs and surgicals, on which no marg...
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