Life Healthcare expects better patient numbers to lift full-year revenue
The private hospital group’s European operations outperform its SA unit
SA’s third-biggest private hospital group, Life Healthcare, said patient volumes at its Southern African operations were recovering, but its operations in Poland and the UK were performing slightly better.
Group revenue for the year to end-September is expected to grow by between 10% and 15%, with the group’s UK division Alliance Medical posting revenue growth of between 23% and 27%.
Revenue is expected to grow by between 13% and 16% in Poland, due to the current four-year contract with the Polish National Health Fund.
Revenue in Southern Africa is expected to rise by between 7% and 10%, with the group also reporting higher costs in the unit, including head office costs and due to its spend on data analytics.
Life Healthcare is currently refocusing on its core businesses in the UK, SA and Poland after recently announcing it was exiting from its Indian business.
The group is selling its 49.7% stake in Max Healthcare for about R4.3bn, which it intends to use to settle debt and invest further in its core markets.
Max Healthcare’s investment book value at the end of March amounted to R2.9bn, the group said on Friday, with its share of that company’s net loss expected to be between R115m and R135m.