Swiss problems result in a huge knock for Mediclinic
Mediclinic's Swiss subsidiary Hirslanden plunged into an operating loss of £54m from an operating profit of £72m
Private hospital group Mediclinic's net loss increased fourfold to £158m in the first half of its 2019 financial year from £40m in the matching period, dragged down by a disastrous performance from its Swiss subsidiary, Hirslanden. Mediclinic nevertheless maintained its interim dividend at 3.2p. Good news in the results was that Mediclinic's Middle East division turned to an operating profit of £14m from an operating loss of £16m in the first half of the prior financial year. But the bad news was its Swiss subsidiary Hirslanden plunged into an operating loss of £54m from an operating profit of £72m. Operating profit from its Southern African hospitals declined by 4% to £81m from £78m.
The group's overall interim revenue declined 1.3% to £1.4bn, dragged down by revenue from Switzerland — which contributed 46% of Mediclinic's total — falling 3% to £631m. "The rapidly implemented regulatory changes regarding outpatient tariff adjustments and out migration of care in Switzerland a...
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.