Australia’s largest private hospital operator, Ramsay Health Care, has produced a result like so many other companies on the ASX 200 (outside the big iron ore miners) in the current June 30 reporting season - OK but nothing to boast about.
Ramsay's UK NHS admissions rose 1.8% year on year in August -- a good result, the broker notes, given an 8.0% increase in FY19 -- however 12-month rolling growth eased to 3.0% from 3.4%. Current admissions and a tariff increase bode well for NHS revenue in FY20, but the increased use of agency nurses to handle the workload reduces margin expectations, the broker points out.
The UK NHS has published hospital activity data for April. UBS estimates NHS e-referrals represent around 79% of Ramsay Health Care's UK total admissions. April volumes for Ramsay decreased -2.9% while 12-month rolling growth moderated to 4.9% from 6.5% at the end of March.
The board of Capio has unanimously recommended the RGdS offer of SEK58 per share. Capio has consequently cancelled the planned sale of the French division to a third party and RGdS has lowered the minimum acceptance condition to 75% from 90%.