Stork loses his way
Ramsay’s ‘surprising’ drop-off in maternity
THE number of patients having babies at Ramsay Health Care’s private hospitals tumbled a “surprising” 12 per cent last month, chief executive Craig McNally says.
Delivering the warning yesterday, Mr McNally said it was a further sign of the affordability issues buffeting the Australian healthcare system.
He was speaking after Ramsay downgraded its forecast for growth in “core” earnings for the financial year ending this month.
Shares in the group, which has more than 70 hospitals around Australia, fell heavily on the revelation, closing $4.68 – or 7.5 per cent – lower at $57.49.
Mr McNally highlighted the weaker conditions in the company’s Australian hospitals and a significant downturn in volumes at its British business.
The cost of healthcare in Australia’s private system has been driving debate between providers and payers.
It has also fuelled government reviews into the rising out-of-pocket costs hitting consumers, and calls for new models of care to stop people getting unnecessary procedures.
Mr McNally said there had been a lot of “noise” around the issues, particularly last month.
It was too early to determine if that publicity was behind the weaker growth in procedural work and inpatient admissions, he said.
But he added there was a clear trend emerging for maternity services. “In May, there was a surprising 12 per cent decrease in maternity and I believe that is an outof-pocket issue,” he said.
“We have flagged to the market for a while that maternity services were under pressure. That seems to have ramped up.
“I don’t have the absolute answer about that at the moment but I’m sure affordability is a part of that.”