Hospital occupancy lifts as lockdown eases, Life Healthcare says
Revenue in April was 40% lower than the previous year while it had increased on a monthly basis
Private hospital group Life Healthcare said on Monday it had seen an increase in occupancy as lockdown restrictions eased.
Hospital occupancy in Southern Africa jumped from 39%, with no elective cases, under lockdown level five in April, to 61% currently, the company said in a business update for April to July 2020.
“As SA appears to be coming out of the Covid-19 surge in August and with the introduction of the level 2 lockdown we expect to see an increased rate of return of elective cases,” the company said.
Revenue in April was 40% lower than the previous year while it had increased on a monthly basis, while revenue was 14% lower in July compared to the same time in 2019.
The company said despite the monthly improvements, the aggregate revenue decreased about 22% and normalised earnings before interest, taxes, depreciation and amortisation for the period (ebitda) fell 63% from the comparable period.
The group’s UK Alliance Medical Group had seen an improvement in operating performance since April with revenue increasing by about 5% in July from the previous year.
Life Healthcare said it was in the process of increasing its committed bank facilities by R1.7bn, by mid-September. Those facilities were at R3bn by July 31 2020.
The company has been able to substantially restore its IT systems after it said in June that it had switched to manual processing systems following a hacking attack.
At 11.46am, the company’s share price was down 0.30% to R16.66 while it has lost 32% so far in 2020.
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