Netcare welcomes improved medical schemes' solvenc
CAPE TOWN The private health-care sector stood to benefit from the increasing numbers of insured individuals in SA as the solvency of medical aid schemes gets better and medical inflation continues to decline, Network Healthcare Holdings (Netcare) CEO Jackie Shevel said yesterday.
Netcare and its partnership with health-care professionals through Netpartner can now offer a full range of health-care services to almost 80% of SA's insured population.
"This favourable positioning will see the development of numerous preferred provider products in the future, with the ultimate objective of making private health-care more affordable to more people of SA.
Shevel said operating margins improved despite pressure from improved staff benefits, lower inflation and the stronger rand, which affects inflation on pharmaceuticals. Headline earnings grew 25% to 45,9c and the total capital distribution for the year was 15c (11,5c). The group posted a 25% increase in revenue to R6bn in the year to September compared with the same period last year. Excluding the firsttime consolidation of its interests in Netcare Diagnostics, revenue grew by 18%.
The core hospital business, which represents 77% of group revenue, performed well but Traumanet, the owner of the Netcare 911 brand, reported a disappointing loss.
The hospital division grew market share and the group has invested in upgrading some of the full-service, acute-care hospitals.
Traumanet grew the number of insured principal members by 64% over last year and attended a record number of emergency cases one case every four minutes. But increasing public awareness and the lack of resources in the state sector caused a 79% increase in services to indigent, nonpaying patients.
Traumanet will continue to serve indigent patients as Shevel said it was part of the group's social responsibility.
Netcare is continuing to develop its working relationship with the UK's National Health Service. It is the preferred bidder on two five-year contracts with guaranteed patient volumes and combined value of about £114m. In SA Netcare recently launched Netpartner, an investment with independent health-care professionals .
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