Mediclinic International, which currently has fewer than 100 patients in SA hospitals with Covid-19, the lowest since the start of the pandemic, posted better-than-expected first-half result with headline earnings rising fourfold.
The group, with a primary listing on the London Stock Exchange, now predicts higher-than-expected revenue for the year ending in March 2022.
Its headline earnings per share, a profit measure used in SA that strips out one-off items, rose from 2.4p to 8.8p.
The group, which owns hospitals in SA, Abu Dhabi and Dubai in the United Arab Emirates (UAE), and Switzerland, has treated 78,000 patients for Covid-19 since January 2020.
Hospital groups, however, saw revenue fall at the beginning of the pandemic as non-emergency treatments were cancelled in order to save resources for Covid-19 patient care.
Mediclinic said patient volumes in both the Middle East and Switzerland have returned to normal.
In Switzerland, “we delivered a very robust performance and patient volumes hit pre-pandemic levels, which is really quite positive”, said CEO Ronnie van der Merwe in a media call.
Abu Dhabi is seeing better-than-expected international visitor numbers and, with the rising oil price and a good macroeconomic environment, the group expects revenue in the Middle East to rise in its second half, possibly by double digits.
Group revenue was up 12% to £1.5bn (R30bn). Compared with the prepandemic first half to September 2019, group revenue was up 4%. While operating profit of £129m was up 101% in the first half in 2020, it was still down 14% compared with the prepandemic period.
The group believes it is on track to reach prepandemic profit levels, but this is unlikely to happen in the next six months.
At the peak of the pandemic in SA, there were 2,500 patients at one time in its hospitals. Van der Merwe said, however, even in the severe third wave, its SA hospitals were able to treat an increased volume of non-Covid-19 patients, which led to better earnings.
Its day hospitals in SA, which offer treatments that rarely require overnight stays, are not back to capacity but he expects they will rebound. Day surgeries are likely to increase at the beginning of next year when people have medical aid funds and return to doctors for nonemergency care.
Hospitals in SA are prevented by law from hiring doctors, but Mediclinic employs nurses and has instituted mandatory vaccination for them with only a minority objecting.
Van Der Merwe said: “We made a decision in the interest of our patients and our staff. We followed all the necessary processes and engaged with our staff in a very transparent way. There are always some people who have some doubts about vaccinations, but we’re dealing with that. It’s a minority. Things are moving along smoothly.”
One of Mediclinic’s focuses is digital innovation. It said virtual care initiatives that were used to increase access to doctors in the pandemic complemented existing services and have been expanded.
In Switzerland, a Hirslanden mobile application pilot allows for live chats with paediatricians and midwives who then have the ability to refer patients to a doctor if necessary.
The “MyMediclinic 24x7” mobile application at Mediclinic Middle East allows for live appointment booking, telemedicine services and is fully integrated with the division’s electronic health record.
In SA, it expects digital uptake and telemedicine to take longer to grow, but that it will increase in popularity.
Dis-Chem is also investing in telemedicine and believes a switch is coming as the service makes it cheaper to see a nurse and dial up a doctor.
Van der Merwe said the applications used in the UAE will be available in SA, and interest in telemedicine will grow.
“SA will follow in the footsteps of many of these other countries in which these things are done. We are focusing on a much broader digital health offering, and eventually there will a big demand for it in SA. It just might take a little bit longer, but there’s no doubt that it’s going to become a big part of healthcare delivery.”
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