Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — 2013 Annual Stockbrokers Conference
27 slides from Ramsay Health Care's conference presentation, May 31, 2013
Slide 1: Emerging Themes in the Australian & Global Health Systems
For personal use only Emerging Themes in the Australian & Global Health Systems 2013 Annual Stockbrokers Conference - 31st May 2013 Ramsay Health Care Managing Director, Chris Rex
Slide 2: Ramsay Health Care
Ramsay Health Care For personal use only • 117 hospitals in Australia, Indonesia, UK & France • Circa 10,000 beds • Employs more than 30,000 people • Admits over 1 million patients per annum • Market Cap: $7.0 billion • Enterprise Value: $8.0 billion
Slide 3: Consistently Delivering Strong Total Shareholder Returns (TSR)
CONSISTENTLY DELIVERING STRONG TOTAL SHAREHOLDER RETURNS (TSR) For personal use only Compound Annual Rate of Growth over 15½ years 11-Apr-13 2,959% Ramsay Health Care TSR 24.6% Vs. S&P/ASX 100 Acc. Index 9.2% 11-Apr-13 295% * * Ramsay Health Care listed on ASX – 23 September 1997 Source: FactSet, Ma
Slide 4: Our Formula for Success
OUR FORMULA FOR SUCCESS For personal use only • Management and culture: – Long term, stable management team, special culture (“The Ramsay Way”) – Ramsay can export proven management model & blend it with local expertise • Modus operandi and strong growth strategy: – Ramsay’s growth strategy has rema
Slide 5: Strong Growth Strategy
STRONG GROWTH STRATEGY For personal use only Sustainable growth enhanced by focusing on hospitals & taking a prudent approach to acquisitions Brownfield Creation of Public/Private Organic + Capacity + Collaborations + Acquisitions Shareholder Expansion Value Underpinned by Unmet demand Potential for
Slide 6: Ramsay Health Care in 2013
Ramsay Health Care in 2013 For personal use only • Solid performance across worldwide portfolio • Completed projects to meet the growing demand in the ongoing brownfield capacity expansion programme (investing >$100m pa) • Recently entered a JV with Malaysian conglomerate Sime Darby to expand health
Slide 7: Global Health Themes
Global Flealth Themes
Slide 8: Strong Industry Fundamentals - Global
Strong Industry Fundamentals - Global For personal use only • Growth in demand for health care will continue to be supported by: – Ageing population – Increased chronic disease burden – Increased expectations – Increased capabilities: • Surgical techniques • Devices • Pharmacology • Biotechnology
Slide 9: For personal use only
For personal use only • By 2050, the number of people aged 65+ will total just under 1.5 billion, or 16% of the global total. In 1950, it was only 5%. (UN 2009). • This ageing population is without parallel in the history of humanity.
Slide 10: Global Market Trends in Healthcare
Global Market Trends in Healthcare For personal use only • Governments around the world are increasingly concerned about the rising costs of health care • Patients demanding and willing to pay for higher quality health care • Increasing GDP and affordability driving growth for private operators • Si
Slide 11: Themes in the Australian Health Care Sector
\ y 4 Themes in the Australian Flealth Care Sector
Slide 12: Strong Industry Fundamentals
Strong Industry Fundamentals For personal use only • Balanced health care system – Cultural – Political – Financial • Industry features – Respected private providers UNDERPINS – Choice & access ONGOING – Low cost attractive insurance product STRONG – Comprehensive cover PARTICIPATION – Community rat
Slide 13: Australian Healthcare Sector Themes
Australian Healthcare Sector Themes For personal use only Grattan Institute Report released recently reveals: • People are seeing more doctors & having more tests • If the scope of health services continues to increase at the rate of the last decade (74%), health will demand an additional 2% of GDP
Slide 14: For personal use only
For personal use only
Slide 15: Who Will Pay?
Who Will Pay? For personal use only • In Australia, the cost of health & aged care across Federal & State Governments is expected to almost double over the next four decades • Based on current rates of population growth & ageing, the cost to governments of care will grow to 14.5% of GDP by 2049-50 f
Slide 16: Who Will Pay?
For personal use only Who Will Pay?
Slide 17: The Role of the Private Sector
The Role of the Private Sector
Slide 18: The Private Hospital Sector Australia
The Private Hospital Sector Australia For personal use only • Treat 43% of all hospital patients (3.6 million); • Provide 33% of all hospital beds; • Perform 66% of all elective surgery; • Of the 664 Diagnostic Related Groups undertaken in Australian public hospitals, 660 are performed in private ho
Slide 19: Australian Health Care Costs
Australian Health Care Costs For personal use only In 2010/11: • $130.3b spent on healthcare in Australia in 2010/11 (recurrent expenditure) • $38.9b spent on public hospital services • $10.8b spent on private hospitals • The government paid out $4.63b in PHI rebates • Total Medicare benefits paid f
Slide 20: The Role of the Private Sector in Public Healthcare
The Role of the Private Sector in Public Healthcare For personal use only • In Australia, State governments are looking more to the private sector to build, own and operate public hospitals (eg Qld Health Blueprint) • State Governments are procuring more input from private sector in planning, buildi
Slide 21: Successful Public/Private Collaborations
Successful Public/Private Collaborations For personal use only Joondalup Health Campus: • 650 bed public/private hospital • $393m expansion completed in March • Largest hospital in Perth’s northern corridor • Agreement with WA government • Treated public & private patients since 1996 • In 2012 – 90,
Slide 22: Successful Public/Private Collaborations
Successful Public/Private Collaborations For personal use only Sunshine Coast University Private Hospital • Public/Private 200 bed hospital being built in partnership with Queensland health • 5 year contract to treat public patients • Opening in late 2013
Slide 23: The Role of the Private Sector in Public Healthcare
The Role of the Private Sector in Public Healthcare For personal use only • Unions will campaign against privatisation using the following myths: – The private sector will “cherry pick” – Private sector will cut corners – Less focus on safety & quality – No commitment to teaching & research
Slide 24: Public v Private
Public v Private For personal use only Public Healthcare • Monopoly • No fear of failure • No need to make a profit Private Healthcare • Competitive market • Absolute fear of failure • Absolute requirement to make a profit
Slide 25: Productivity Commission Findings 2010
Productivity Commission Findings 2010 For personal use only • On average treatment in private hospitals costs $130 less than in public hospitals • When looking at the costs that private hospitals can control they cost 32% or $1,089 less than public hospitals • Private hospitals have a more complex c
Slide 26: Teaching in the private sector
Teaching in the private sector For personal use only • Private hospitals deliver >500,000 days of clinical training (medical/nursing/allied health) each year. (HWA) • Approx 50 private hospitals in Australia currently support undergraduate training for medical students (Productivity Commission repor
Slide 27: Summary
Summary For personal use only • Ageing demographic & growing disease burden - leading to increased demand for healthcare • Rising costs - leading governments across the globe to consider healthcare reform • Private sector offers efficient & effective models of healthcare delivery • An expansion of t
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