Netcare’s ailing UK business at crossroads
Occupancy rates in SA improved, and revenue was pushed up by an increase in patient numbers and in revenue per patient
Private hospital group Netcare’s decision to exit the UK contributed a R4.2bn "profit on loss of control", helping its interim net profit nearly double to R3.6bn. Netcare reported on Monday morning that revenue from continuing operations for the six months to end-March grew 8.2% to R9.97bn. It raised its interim dividend by 16% to 44c. Netcare announced in March it intended selling its 57% of the UK’s largest private hospital group, BMI Healthcare, following a dispute with BMI’s largest landlord. Netcare is also selling its 57% share of a property company that owns six of BMI’s hospitals. Besides the high rents, Netcare said it was leaving because of "the deterioration of the UK healthcare market, which is expected to remain constrained in the medium to longer term". Netcare reported its South African hospitals and emergency services grew revenue by 9.3% to R9.64bn. The group said this was due to patient day growth of 3.5% and an increase in net revenue per patient day of 5.1%. That...
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