Netcare to withdraw from the UK
Netcare has decided to exit the British market, citing difficult trading conditions as the reason.
Netcare, South Africa’s third-largest private hospital chain, has decided to exit the UK market. Netcare has been in Britain for a decade through a controlling stake in BMI Healthcare.
The company made the decision as it says trading conditions “remain difficult” across the private healthcare market. It further noted that poor performance by BMI Healthcare was the result of National Health Service (NHS) demand management initiatives and weaker private medical insurance demand.
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According to Bloomberg, Netcare expects the core earnings (Ebitda) margin in the British business to be between 0.8 percent and 1.2 percent in the first half of this year, down from 5.2 percent in the previous period.
Pictured: Dr Richard Friedland, CEO of Netcare Limited