Advanced Health’s day clinic model fails to take off
Slow uptake stifles Advanced Health’s SA growth prospects
When Advanced Health began building its day hospital business in SA about five years ago, it had one goal: to provide an alternative to expensive hospital stays for patients and, in turn, medical aids. SA faces rising health-care costs and a growing divide between the one-fifth of the population who can afford private health care and the rest, who rely on a strained public health system. Despite high health-care costs — so high, they have triggered a market inquiry — the Pretoria-based company's cheaper alternative to overnight hospital stays hasn't gained as much traction as it has enjoyed in the Australian market. Day hospitals have been a tough sell in SA as patients and doctors are used to most surgeries taking place in acute hospitals. Advanced Health's lack of market penetration has seen its Alt-X-listed shares tumble more than 57% in the five years since listing. It now trades at about 59c. With shares under pressure and cash running out, the company is struggling to open new...
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.