Netcare to exit Britain

Netcare drew a line under its ambitions in Britain yesterday, saying it would exit the market.

The private healthcare operator has been in Britain for a decade via a controlling stake in BMI Healthcare. It said the move was because trading conditions “remained difficult”. BMI Healthcare’s poor performance was due to National Health Service (NHS) demand management initiatives and weaker private medical insurance demand, it added.

Recently Netcare said it would restructure its British operations, after a drop in profit due partly to NHS belt-tightening. The NHS, which has been operating with a more than one billion pound deficit and a shortage of beds and staff, has been seeking help from private companies like BMI. But the NHS caseload at BMI dropped by 4.4% year-on-year for the five months to the end of February. Netcare expects the core earnings margin in the British business to be between 0.8 to 1.2% in the first half, down from 5.2%. – Reuters