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 Videos In conversation with African Export–Import Bank Effective management during a pandemic needs to be supported with cross-sector partnerships and sustainable funding. Videos In conversation with The Global Fund The Global Fund is a partnership designed to accelerate the end of epidemics. Videos In conversation with Africa CDC Africa CDC is crucial in coordinating vaccination efforts to ensure we reach the 60% vaccination target.
