Demand for healthcare services drives growth for Mediclinic, says CFO Jurgens Myburgh
Jurgens explains that Mediclinic has seen a return to pre-pandemic level revenues in the last six months.
Mediclinic has returned to pre-pandemic level revenues at all three of its divisions, indicating a strong recovery in its six months ended 30 September 2021 results.
CFO Jurgens Myburgh explains that the group’s revenue was up 12 percent as the underlying demand for healthcare services drove growth in patient volumes across all three divisions. “Volumes at Hirslanden in Switzerland and Mediclinic Middle East exceeded pre-pandemic levels, while Mediclinic Southern Africa saw significant growth in patient activity as the division effectively balanced the demands of Covid-19 and non-Covid-19 patient care during the severe third wave of the pandemic.”
He adds that, compared with the pre-pandemic period, adjusted EBITDA was broadly in line and up five percent in constant currency terms. The group’s adjusted EBITDa margin materially increased to 15.8 percent, driven by the strong revenue performance.
Across the group, incremental Covid-related expenses totalled around £14 million (about R287 million).
“The adjusted EBITDA margin is approaching pre-pandemic levels, while reflecting increases in consumable and supply costs driven by these Covid-related expenses and a higher input cost associated with higher acuity revenue,” Jurgens says, adding that specific cost management initiatives have been implemented as part of the group’s objective to return to pre-pandemic margins across all three divisions over time.
“The group has demonstrated that it is well positioned to deliver its broad and growing range of healthcare services through the pandemic,” he explains. “The performance over the last six months has confirmed that underlying demand for our services remains solid.”
Jurgens adds that the group’s strategy is geared towards delivering growth in patient volumes, which combined with its focus on operational and cost-efficiencies, is expected to see a return to pre-pandemic EBITDA margins.
“Aligned with the group’s strategic goals and balanced approach to capital allocation, Mediclinic will continue to consider opportunities to grow within its existing business across the continuum of care, invest in various innovation and digital transformation initiatives and pursue opportunities for regional expansion through bolt-on investments at the appropriate time,” he says.
Through these initiatives, Medclinic has enhanced its services through virtual care initiatives, including launching telemedicine mobile apps and precision medicine services. For example, the “MyMedical 24x7” mobile application is proving highly successful in the Middle East – and is now approaching 90,000 app downloads, and 100,000 appointments booked since April 2021.
“Mediclinic continues to effectively navigate the Covid-19 pandemic, fulfilling an essential role to the communities we serve, caring for around 78,000 Covid-19 patients and delivering around 1.2 million vaccinations across the group,” says Jurgens.
He explains that the scale of some of these operations has been immense. In April, Hirslanden opened the largest vaccination centre in Switzerland in Zürich with the capability of administering over 5,000 vaccinations per day.
“We extend our gratitude to our exceptional medical professionals and employees, who have played a vital role in combatting the pandemic and caring for all those affected,” Jurgens says.