Advanced Health's losses widens as it rolls out more hospitals

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Advanced Health's losses widens as it rolls out more hospitals

Published Date: 2017-08-31 | Source: Stephen Gunnion | Author: Stephen Gunnion

Advanced Health's losses widens as it rolls out more hospitals

The day hospitals group is hoping to capitalise on new technologies that mean patients don't have to stay overnight.

Advanced Health has widened its first-half loss as the day hospital group expands its operations. It has opened eight new facilities over the past two years and is planning a further two next year. However, it says it's placing any further facilities on hold until its existing hospitals are making a profit. It plans to have 20 day hospitals in South Africa and six in Australia by 2020.

The hospitals group is taking advantage of changes in the healthcare industry where the move to compact, short-procedure facilities are being accelerated by technology, the latest being key-hole surgery, which means patients may not have to stay overnight.

Revenue for the year to end June rose 28% to R309 million, with more than two-thirds of that made in Australia. Its losses tripled to R48.2 million, dragged lower by head office costs and its subscale South African operation. Its headline loss per share more than doubled to 17.08c. However, South Africa's contribution to income is increasing, as more day hospitals are opened and patient numbers increase. Patient numbers increased by 55% across the group over the period.

Advanced Health is now going on a marketing drive to attract more customers to its facilities. It says a number of medical schemes have voiced their support for the treatment of patients in day hospitals as it's cheaper for them.

Its shares ended the day unchanged at 90c.



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