Head: Healthcare, Construction & Hospitality
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.
- 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.