South Africa's third-biggest hospital group, Netcare, anticipates R2.3 billion loss

Netcare has expects to a R2.3 billion earnings loss due to Covid-19.
Netcare has expects to a R2.3 billion earnings loss due to Covid-19.
James Stent, GroundUp

South Africa's third largest hospital group, Netcare, warned that it may report a R2.3 billion loss as patients shied away from surgeries in the wake of Covid-19 pandemic.

In a trading update released on Thursday, the company tallied up its revenue loss due to the pandemic to be in the region of R3.7 billion. Netcare, which comes third in size compared to the likes of Mediclinic and Life Healthcare, is expected to report its annual results next week.

Netcare has seen fewer than normal patients in its hospitals, after they postponed their surgeries when South Africa went into its hard lockdown in March. The group which operates 56 acute hospitals, with 10 471 beds, ended its year with 52.5% full week occupancy levels compared to 66% in 2019 and 56% weekday occupancies, down form 71.6%.

The company's shares closed more than 5% lower after the update.

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