The day-hospital prescription written by Advanced Health would appear to be the antidote to rising medical costs in the private hospital sector.The company, in a presentation covering the interims to end-December, argues that private hospitals are the main drivers of health care in SA, but adds that 70% of procedures can be attended to at substantial savings in day hospitals.On paper, Advanced’s day-hospital model looks a healthy alternative to the (largely) default private hospital offering.On the financial statements, unfortunately, the proposition still looks weak and perhaps due for another injection of capital.The company raised R86m in a rights issue last August, though directors switched loans into equity as part of the exercise.Advanced is still burning through cash. The cash-flow statement shows a net cash outflow of R14m. This is, at least, a marked improvement on the previous interim period’s R22m outflow.The problem for Advanced is that its more mature Australian oper...

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