Netcare, Africa’s largest private hospital group, increased full-year adjusted headline earnings per share by 27% to 61,8 cents and said on Monday it expected strong growth in its sector to continue.
Headline EPS, which excludes non-trading, capital and certain extraordinary items, is the key profit measure for South African firms.
Netcare said total revenue from its South African and United Kingdom operations rose 66,8% to R18,61-billion for the year to end-September.
The firm said strong growth was experienced in its South African private healthcare business in both the insured and self-pay markets, which was expected to continue. This was partly fuelled by new growth in the medically insured population.
”However, capacity constraints at a number of our facilities are necessitating a review of our operating practices,” Netcare said in a statement.
”We [Netcare] continue to restructure our pricing model and intend to convert a substantial portion of our fee-for-service pricing model into an alternative reimbursement and risk sharing model with funders, and are working with government to formulate the National Health Reference Price List.”
”Strong organic growth was evidenced by a 5.9% increase in the number of patients admitted into hospital or treated in our casualties during the year to over one million. Patient days increased by 4,5%. The 13% growth in self-pay hospital revenue alongside strong growth in casualty and maternity admissions, demonstrates the willingness of the medically uninsured to purchase healthcare,” the group stated. – Reuters, I-Net Bridge