HEALTHCARE INSIGHTS | 10 JUNE 2020 Know why the private health sector is under pressure Absa | Corporate and Investment Banking > Insights and Events > Know why the private health sector is under pressure Liza Eustace Head: Healthcare, Construction & Hospitality SHARE 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 EustaceHead: Healthcare, Construction & Hospitality https://cib.absa.africa/wp-content/uploads/2020/07/file_example_MP3_700KB.mp3 Related Articles HEALTHCARE INSIGHTS Webinar: The Impact of Covid-19 on the Healthcare Sector A panel of experts examine the impact of Covid-19 and the measures that must be taken to prepare for what lies ahead. HEALTHCARE INSIGHTS SA’s private healthcare sector addresses COVID’s negative financial impacts While on the surface, a medical crisis benefits the healthcare sector, the realities of COVID-19 are far more complex.