HEALTHCARE INSIGHTS | 10 JUNE 2020

Know why the private health sector is under pressure

Liza Eustace Author

Liza Eustace

Head: Healthcare, Construction & Hospitality

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Absa’s Liza Eustace unpacks exactly how COVID-19 is negatively impacting the sector

One of the biggest implications of the health crisis has been the cancellation of elective surgeries, affecting private hospital groups. Liza Eustace, Head: Healthcare, Construction & Hospitality at Absa shares more with Bruce Whitfield on The Money Show.

Video highlights:

  • With South Africa expecting COVID-19 to spike in September, one would expect the healthcare sector would be booming. Instead, the opposite is true and share prices are dropping.
  • Elective surgeries account for up to 60% of hospital revenues. Elective surgeries offer higher margins, and yet fixed costs remain the same. The result is hospitals are under pressure.
  • PPE costs have increased, without revenue increasing.
  • The result will be overall healthcare inflation.
Liza Eustace Author
Liza Eustace

Head: Healthcare, Construction & Hospitality

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