NETCARE CONCLUDES CONTRACT WITH UK"S NATIONAL HEAL
NETCARE CONCLUDES CONTRACT WITH UK"S NATIONAL HEALTH SERVICE
NETWORK HEALTHCARE HOLDINGS LIMITED
(Co. Reg. No. 1996/004282/06)
("Netcare")
JSE Code : NTC
ISIN number : ZAE000011953
Netcare concludes contract with UK"s National Health Service
On 12 September 2003, it was announced that Netcare had been selected as the
likely Preferred Bidder for two new NHS Treatment Centres (TC) in the United
Kingdom (UK), both TC"s having a combined value of GBP114 million (estimated at
that time at R1,4 billion).
Netcare is pleased to announce that it has successfully concluded and signed the
first of the two TC contracts which will involve approximately 44 000 cataract
procedures being performed over a period of 5 years using a combination of
mobile units throughout the UK.
The contract for the ophthalmic chain (OC) TC"s guarantees patient volumes as
well as the number of elective procedures - services under this contract will
commence on 26 January 2004 and these will be implemented using mobile theatre
units and roving clinical teams that will travel to the respective areas falling
within the scope of the TC.
Following the established networks and experience already gained through the
Group"s participation in NHS Waiting List Initiatives, Netcare has developed and
implemented an effective model for operating the TC"s which will have no impact
on local operations nor impact on healthcare resources in South Africa.
Furthermore, the TC`s will also fulfil Netcare"s strategic objective of
retaining doctors and staff in its hospitals and within the South African
healthcare system, because, by participating in these NHS contracts, Netcare
affords its staff and doctors the opportunity to work abroad on a short-term
basis only, without having to emigrate and forfeit their jobs and other benefits
such as medical insurance, pension or provident funds.
This contract in isolation is not expected to materially impact Netcare"s
earnings for fiscal 2004, but is anticipated to provide an anchor for the
Group"s UK presence, its second TC contract presently being finalised, as well
as the Group"s strategic expansion plans going forward.
Further announcements on these matters will be made from time to time, including
the status of the second TC contract requiring approximately 45 000 surgical
procedures (orthopaedic, general, and ear, nose and throat) to be performed at
the Greater Manchester Surgical Centre (GMSC) in the city of Manchester.
Sandton
13 January 2004
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 13/01/2004 05:31:02 PM Produced by the JSE SENS Department
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