Netcare said yesterday it was encouraged by the improvement in its financial performance as the full-year to September 30 results normalised from the seasonal inconsistencies of the first-half results.
The private hospital group said in a trading statement the improvement was supported by sustained activity growth through the second half. The group said it was on track to meet the full-year guidance and strategic project goals published in the first-half results.
Total paid patient days (PPD) for the year were expected to grow by 0.3% against 2023. Revenue for both the group and the hospital and emergency services segment was expected to grow by 5.5% to 6.5%.
The business remained focused on cost efficiencies and continued to benefit from operating leverage. Normalised group earnings before interest, tax, depreciation and amortisation was expected to strengthen by 25 to 60 basis points year-on-year.
The group incurred the final implementation costs related to the CareOn Electronic Medical Record project of R59 million in the first half, and gross savings would exceed guidance of R120m for the year.
Similarly, other strategic operating costs relating to environmental sustainability and NetcarePlus remained within guidance of R75m.
During the year the group bought back 60 million shares at an average price of 1 193 cents per share.
In the second half, acute hospital PPD were expected to grow by 2.1%, exceeding guidance and reversing the seasonal inconsistencies across March and April 2024, which had resulted in a 1.7% PPD decline in the first half.
Total PPD for the segment increased by 0.6% for the 11 months to August 31. However, the earlier commencement of the school holidays on September 20, 2024, negatively impacted activity in the last two weeks of the year.
Acute hospital revenue per PPD for the 11 months to August 2024 increased by 6.1%.
The average case severity remained above that of 2019 as reflected in an increased length of stay for the 11 months to August 2024 of 4.5 days, from 4.4 days in the 2023 financial year.
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