Ramsay Health Care, Australia’s largest private hospital operator, anticipates increased earnings this year but cautions that cost pressures and resistance from health insurers to boost hospital funding pose ongoing challenges. The company announced on Tuesday that its first-quarter EBIT rose by 5.8 per cent, with revenue climbing 6.5 per cent. Hospital admissions also saw an increase of 2.6 per cent during the same period. Ramsay Health Care provides a range of healthcare services, operating hospitals and other facilities across Australia and internationally. It partners with doctors and governments to deliver quality patient care.
The company reaffirmed its earnings growth guidance for its Australian operations for the current year. However, it anticipates a $37 million negative impact on profits stemming from its Joondalup hospital in Perth. This is due to a newly implemented funding agreement with the West Australian state government.
Ramsay Health Care also stated that Goldman Sachs, its advisers, have concluded a review of its Sante business in Europe, which has been facing difficulties. The company did not disclose any specific details regarding a potential sale of the European business following the review.
