Netcare takes a R143m hit in revenue due to COVID-19

Private hospital group Netcare said today it had taken a R143 million hit in lost revenue in March due to the disruption of COVID-19.

Netcare CEO Richard Friedland said following the confirmation of the first South African case of the COVID-19 pandemic in March, the business was materially impacted by extensive Coronavirus preparations and the curtailment of patient volumes resulting in lower occupancies from mid-month.

“We have committed approximately R150 million to enhance the readiness of our ICU and high care facilities in the form of additional ventilators, specialised air filters and ultraviolet light disinfection robots. Additional inventory reserves have also been procured, including adequate levels of personal protective equipment, drugs and consumables, ” Friedland said.

Netcare’s operating profit for the six months ended March was 0.6% lower at R1.7 billion compared to the same time last year.

The group said acute hospital patient days for the month of April declined by 49.5% compared to April 2019, while general practitioner patient visits declined approximately 50% from pre-COVID-19 levels.

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