Netcare shares suffer after warning on prescriptive medical aids

PREMIUM

SA’s largest listed hospital group, Netcare, was hit on Monday by the biggest one-day drop in its share price in almost two months after it said profits will be squeezed by increasingly prescriptive medical aids.
The schemes restrict members to specific hospitals, allowing them to "shift market share in return for price discounts", Netcare said.
SA’s medical aid schemes were "going to put more and more pressure on the hospital groups to be more selective in admitting patients", said Sentio Capital portfolio manager Imtiaz Suliman.
Netcare warned investors that margins in its hospitals and emergency-services divisions would shrink between 50 and 80 basis points in the second half of the financial year...

This article is reserved for HeraldLIVE subscribers.

A subscription gives you full digital access to all our content.

Already subscribed? Simply sign in below.

Already registered on DispatchLIVE, BusinessLIVE, TimesLIVE or SowetanLIVE? Sign in with the same details.



Questions or problems? Email helpdesk@heraldlive.co.za or call 0860 52 52 00.

X