Industry News

& Articles

Ramsay Health Care Inks COVID-19 Deal with NSW Health

Facebooktwitterlinkedin

The federal government has given the green light for states to accelerate elective surgery capacity when ready, leaving private hospitals operators hanging mid-air with growing waiting lists. Across the nation, most states were operating at 25 per cent for non-essential elective surgery. Yet, South Australia was the outlier, moving to 100 per cent on Wednesday, 13 May 2020.

Aside to Victoria and Queensland, Ramsay Health Care (RHC) has now entered into a binding deal with the NSW Ministry of Health to make its services and facilities available during the COVID-19 pandemic. The new agreement with NSW Health replaces the non-binding terms that were in place since 31 March 2020. Specifically, the initial period of the agreement has started on 14 May 2020 and will last until the date notified by the Commonwealth as the last date covered by the private hospital financial viability payment under the National Partnership Agreement. The deal emerges weeks after a partial lift on the ban of non-urgent elective surgeries in Mid-April.

On Friday, 15 May, merely 50 COVID-19 cases remained in hospital with 12 patients requiring ventilators. As a result, Prime Minister Scott Morrison announced a three-staged approach towards a full resumption of elective surgeries. Specifically, stage one is no more than 50 per cent of normal surgical activity levels; stage two is up to 75 per cent and stage three spans up to 100 per cent.

Moving forward, the feral government will review the level of elective surgery monthly in ensuring that it remains safe and sustainable. Ramsay Chief Executive Craig McNally says that the firm, which operates more than seventy hospitals nationwide, was ready for the reintroduction. Surgeons anticipate that Australia will be greeted by a wave of overdue as procedures such as endoscopies, colonoscopies, and hip and knee replacements are rescheduled. Yet, RHC believes it is in an excellent position to assist with the backlog of elective surgery that has been weighing heavily on the public system.

Outside of Australia, RHC has also confirmed that it has finalised an agreement with NHS England to make its facilities and services available to the NHS and its patients during the COVID-19 pandemic. The term of the comprehensive agreement is for a minimum of thirteen weeks from 23 March 2020, following which the agreement will operate on a rolling basis terminable by NHS England on one month’s notice. Additionally, the hospital operator will receive cost recovery for its service, including overheads, operating costs, utilisation of assets and rent.

More broadly speaking, having received both funding support from the federal and state government, it is likely that RHC will break even on earnings before interest and tax (EBIT). In April, Ramsay has also successfully completed A$1,200 million placement to institutional investors, priced at $56 a security. The firm is also looking to raise up to A$200 million through a share purchase plan.

By Caroline Wong 

Click here for a 7 days access to our Lotus Blue Portal.

Comment on this company

Latest Stories

Macmahon Holdings Reaffirms FY20 Guidance

Coronavirus has had a massive impact worldwide and has shaken investor confidence in many…..

CIMIC Group Silent On Fresh Cash Flow Doubts

The international, multifaceted contractor CIMIC Group (ASX: CIM) has seen their Thiess.. …

Credit Corp Successfully Completes Share Purchase Plan

Local debt collection company, Credit Corp Limited (ASX: CCP), has today announced…..

More for you

Wisetech Reshuffles Payout Arrangements

Founder and CEO of WiseTech Global (ASX: WTC), Richard White oversaw renegotiations… …

Kogan.com Struggles To Appease Matt Blatt Customers

Turbulent macroeconomic developments across the world have created unique circumstances.. …

Seven Group Becomes Substantial Holder of Boral

Back in March when Australia was struggling to battle the coronavirus pandemic, Seven.. …

Woolworths Rewards Employees With $57m in Shares

Woolworths recognises the value of essential workers, with over 30,000 full-time employees each…..

UAC Energy Makes Attractive Bid for Infigen

UAC Energy Holdings has today, 03 June 2020, proposed a new addition to its business.. …

ACCC Intervenes in Qantas’ Acquisition

Qantas (ASX:QAN) has recently attracted scrutiny from the  Australian Competition and.. …

KOSEC Terms & Conditions

Kodari Securities Pty Ltd (CAR 399556) trading as KOSEC is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC is a financial services company and any information provided by its platforms, portals, reports and documents is protected by copyright. Any unauthorised production of this information is prohibited.
KOSEC reserves the right to change or remove any information provided on our website, reports or any documents including these terms and conditions at any time without notice. The change or modification to the terms and conditions will be effective immediately upon posting an updated version on our website, necessary platforms and documents. It is recommended that you review the information provided on our website, including these terms and conditions frequently for any changes.

Disclaimer
KOSEC provides general advice only. The information provided is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. KOSEC recommends that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Please make sure you read our Financial Services Guide (FSG).

KOSEC does not guarantee any returns. Past performance of any product discussed is not indicative of future performance. (We urge that caution should be exercised in assessing past performance. All financial products are subject to market forces and unpredictable events that may adversely affect their future performance). Investing in the stock market can incur huge losses. Please also be aware that fees will incur on every transaction regardless of the performance of your investments or returns generated. Employees and or associates of KOSEC may hold one or more of the stocks, securities or investments reviewed by the company.

Your use of information from our website, reports, documents and from talking to our representatives/associates is at your risk. Under no circumstance should the investment be based solely on KOSEC information and general advice. You should seek professional financial planning advice.
KOSEC aims to maintain the accuracy of the data and information provided on this website, by using information prepared from a wide variety of sources, which KOSEC to the best of its knowledge and belief, considers accurate and does not make any representations or warranties of any kind, expressed or implied, about the completeness, accuracy, reliability, suitability or availability of the information provided.

We may at times refer to third parties, which the details of these third parties have been provided solely for you to obtain further information about other relevant products and entities in the market. KOSEC has no control over the information third parties have, or the products or services offered, and therefore make no representations regarding the accuracy or suitability of such information, products or services. You are advised to make your own enquiries in relation to third parties. Our inclusion of any third party content is not an endorsement of that content or the third party.

Fees
As a client you will be charged a yearly service fee and a set brokerage fee per transaction. Your service fee will automatically renew at the end of your agreed 12 month period at the same rate advertised at the time. Your credit card or bank account will be charged for a further year following which will again auto renew until you cancel your yearly service fee. You can cancel the auto renewal at any time in advance of the renewal date by contacting us. KOSEC is aware of the need to ensure the security of your credit card details and our payment systems are compliant with the Payment Card Industry (PCI) Data Security Standard.

Privacy
You consent to receiving email correspondence from KOSEC, as well as companies KOSEC has an association with. These emails will be sent by KOSEC and third party companies. You can opt out of receiving any category of emails at any time by contacting us. We may from time to time inform you of special offers, or even ask your opinion of the services we provide, but your involvement is optional. Should you request us to do so, we will archive your details.

Indemnity and Liability
You indemnify KOSEC from all claims or threatened claims, suits, demands, damages, costs as well as including legal costs incurred in dealing with any threatened claim, expenses made by any person or corporation against KOSEC and any other amounts which is caused by KOSEC providing information, execution and General Advice.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from a decision made by you on the basis of information obtained through the use of our portal, reports, documents or any General Advice given and any transaction taken place.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from delays in executing orders for the client and acknowledges KOSEC makes no guarantees about the time taken to execute an order on behalf of the client. You acknowledge that KOSEC relies on third parties in providing technology and release KOSEC from any harm, loss or damage you may suffer as a result of the failure of such information technology.

Cookies and Links
KOSEC website, and its portal uses cookies, which lets us identify your browser while you are using the site or our portal. Cookies do not identify you personally. They simply allow us to track your usage patterns. If you prefer not to receive cookies, you can configure your browser to reject them or to notify you when they are being used. The functionality of the KOSEC website may be impacted if you restrict the use of cookies.

Fill up the form below and we will get back to you as soon as possible.

CLAIM YOUR FREE E-BOOK &
7 DAY ACCESS TO LOTUS BLUE

STOCK MARKET SUCCESS

KOSEC’s CEO, Michael Kodari’s new book, “Stock Market Success” valued at $39.95, available at Dymocks book stores with all the proceeds going to Dymocks Children’s Charities.

CLAIM YOUR FREE E-BOOK WHEN YOU LOGIN TO LOTUS BLUE INVESTMENT PORTAL

Latest TV Commercial