Mediclinic benefits from unseasonably high inpatient activity

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Mediclinic benefits from unseasonably high inpatient activity

Published Date: 2021-01-25 | Source: Stephen Gunnion | Author: Stephen Gunnion

Mediclinic benefits from unseasonably high inpatient activity

The private hospital group says it is working with health authorities to support government-led vaccination roll-out plans.

Mediclinic has reported an improved third-quarter performance after it was able to continue with elective procedures at its hospitals despite the ongoing Covid-19 pandemic. It says its financial performance was supported by unseasonably high levels of inpatient activity at Mediclinic Southern Africa and Mediclinic Middle East, partly offset by lower patient volumes at Hirslanden due to increased lockdown measures in Switzerland.

In a trading update for the three months to end-December, the private hospital group said the second, more severe wave of Covid-19 cases had placed greater demand on its acute care capacity. To date, it said it had cared for over 30,000 Covid-19 patients at its hospitals but had reduced the average length of stay as it refined its treatments. In the absence of national restrictions suspending non-urgent elective procedures, it said capacity planning and the availability of services remained the responsibility of the divisions. As a result, in addition to the ongoing delivery of critical and urgent care, its approach to providing elective procedures and outpatient treatments had remained fluid.

Revenue for the quarter rose 2.5% from a year earlier as growth in Southern Africa and the Middle East offset a small decline in Switzerland. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 8%. In the six months to end-September revenue was down 5% in constant currency while adjusted EBITDA fell 32%.

Mediclinic said it was working with health authorities to support government-led vaccination roll-out plans and prioritisation schedules. Last week, Hirslanden opened two vaccination centres in the Zug and Thurgau cantons. The government-led vaccination programme in the UAE was also well underway, with Mediclinic Middle East supporting the roll-out. Mediclinic Southern Africa was supporting the National Department of Health's vaccine roll-out strategy and was part of the private sector initiative to assist the government where required.

Mediclinic said it would release a full-year trading update in mid-April. Its shares fell 3.8% to R58.66 on Friday.





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