/ 24 November 2008

Netcare: Demand for private healthcare will be sustained

Netcare is confident that the demand for private healthcare will be sustained locally, the private hospitals operator in South Africa and the United Kingdom said on Monday.

”This is underpinned by a financially sound and growing medical-scheme market.

”We are hopeful that real opportunities to partner and assist government in the improvement of access to healthcare may also be forthcoming,” Netcare said in releasing its results for the year to September 30 2008.

However, the recessionary environment in the United Kingdom was expected to impact out-of-pocket spend on private healthcare in the short term, the group said.

Group revenue increased by 16,8% to R21,735-million with the South African business contributing 48% and the UK business contributing 52%.

”Performance was driven by organic and acquisitive growth in both countries and the impact of the increased average ZAR/GBP exchange rate during the year.”

Group operating profit increased by 12,7% to R3,370-million while the group operating profit margin declined from 16,1% to 15,5% as a result of sub-optimal tariff levels in South Africa, underwriting costs in primary care and non-recurring costs in both
South Africa and the UK amounting to R132m.

Netcare said it welcomed the appointment of Barbara Hogan as Minister of Health.

”Her constructive and open approach to healthcare issues heralds an opportunity for the health sector, both public and private, to collectively confront the challenges to national health, specifically those posed by the HIV/Aids and [tuberculosis] epidemics and the problems in healthcare delivery.”

The company said it stood ready to assist the government and the department of health in initiatives to broaden access to quality healthcare and ensure better clinical outcomes. – Sapa