Advanced Health in battle for its life
The day clinic specialist is finding the going hard as Mediclinic starts muscling in on its market
Since private hospitals group Mediclinic International secured a primary listing on the London Stock Exchange, investors have been assessing the effectiveness of the bitter pills it’s taken to ensure sustained growth in tricky international markets. But new competition in SA has meant the Remgro-controlled group has had to rework its local growth prescription. In the past financial year, Mediclinic Southern Africa pumped more than R1bn into local operations, investing R423m in expansion capital projects and new equipment, and R634m in upgrade projects and replacing equipment. That spend is not huge in the greater scheme of things, considering Mediclinic carries a market capitalisation of more than R75bn. The total number of licensed beds increased marginally during the year to 8,131 after expansion of Mediclinic’s Thabazimbi and Newcastle hospitals in the second half was completed. Other "modest expansion works", as described by outgoing CEO Danie Meintjes at the company’s results p...
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