Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Investor Day (November 2023)
72 slides from Ramsay Health Care's investor day presentation, Nov 10, 2023
Slide 1: ASX Announcement: Ramsay Health Care Australia Presentation
ASX ANNOUNCEMENT 10 November 2023 RAMSAY HEALTH CARE AUSTRALIA PRESENTATION Ramsay Health Care (Ramsay) (ASX:RHC) is hosting an investor briefing today covering Ramsay Health Care Australia’s business and strategy. The briefing will be hosted by Ramsay Health Care Australia CEO Carmel Monaghan and C
Slide 2: Investor Presentation
For personal use only Investor Presentation Carmel Monaghan Chief Executive Officer Ramsay Australia 10 November 2023 ramsayhealth.com
Slide 3: Important information
The information in this presentation is These factors include general economic For personal use only general background information about conditions; changes in government and Ramsay Health Care Limited and its policy; actions of regulatory bodies and subsidiaries (together, the Ramsay Group), other
Slide 4: Agenda
For personal use only Portfolio Update 01 Market Fundamentals 02 Activity Update 03 Performance Acceleration 04 Strategy for Sustainable Growth 05 Closing Remarks 06 ‘Together in 2020’ by Wendy Rix 3
Slide 5: The Ramsay Way, Mission and Vision
For personal use only The Ramsay Way Our Mission Our Vision People are at the heart of our Creating a best-in-class, To be a leading success. As ‘people caring for digitally enabled healthcare healthcare provider people’ there are three key ways ecosystem – to change what of the future. we approach
Slide 6: Portfolio Update
For personal use only Portfolio Update ramsayhealth.com
Slide 7: Ramsay Health Care – leading provider of healthcare
Ramsay Health Care – leading provider of healthcare For personal use only • Rich history, privileged position in Australia private hospitals, market share c.2x nearest competitor 1 • Responding effectively to structural shift and growth in demand for care delivered outside hospitals • Strong doctor
Slide 8: Our Competitive Advantage
Our Competitive Advantage For personal use only • Strong presence in high growth markets • Purposefully expanding our services in high growth therapeutic areas • Proven ability to efficiently design, build and commission new facilities • Deep long-standing relationships with doctors and health worke
Slide 9: Adjacent services expanding our capabilities
Adjacent services expanding our capabilities For personal use only Comprehensive network of franchised Growing portfolio of 12 stand-alone day Growing network of Ramsay Psychology Clinics community, hospital and in-hospital surgeries and short stay surgical hospitals from Perth to Cairns and Melbour
Slide 10: SE Queensland market
SE Queensland market For personal use only Hospitals* 15 Stand-alone Day Surgical Centres 3 Mental Health Hospitals 3 Emergency Departments 4 Operating Theatres 90 Beds 2,382 Franchised Community Pharmacies 26 Psychology Clinics 5 Ramsay Health Plus 4 Ramsay Ramsay Ramsay Ramsay Health Plus Pharmacy
Slide 11: Market Fundamentals
For personal use only Market Fundamentals ramsayhealth.com
Slide 12: Strong market fundamentals continue to drive demand for health services
Strong market fundamentals continue to drive demand for health services For personal use only • Population growth has increased recently, off the Strong population growth with aging profile Higher life expectancies back of strong net migration, up more than 80% 85.4 versus pre-Covid levels1. 35 Popu
Slide 13: Fiscal pressure on government healthcare spending
Fiscal pressure on government healthcare spending For personal use only Public system is under increasing pressure – privates will need to counterbalance Public hospital per capita capacity has leading public share of separations private providers will play a role in been declining or stagnant since
Slide 14: Changing modes of care delivery
Changing modes of care delivery For personal use only Transition to day surgery expected to continue – albeit confined largely in hospital walls In Australia, the transition to day surgery implying same day will gain share from overnight, is largely occurring in hospitals… muted day hospital share
Slide 15: Impact of future market trends
Impact of future market trends For personal use only Ramsay is well-placed to navigate these changes Trends Ramsay response Increasing healthcare Growth strategy includes strong pipeline of hospital and out-of-hospital services to meet rising demand – concentrating in market demand strongholds, high
Slide 16: Activity Update
For personal use only Activity Update ramsayhealth.com
Slide 17: Ramsay Australia Volumes Trends
Ramsay Australia Volumes Trends For personal use only Activity now trending favourably Activity Trends since Covid Rolling 12 months to October 2023 versus across most specialties 12 months to Feb 2020 (i.e. pre-Covid) growth % • Activity in terms of admissions and IPDAs* now Admissions FY23 Patient
Slide 18: Ramsay Australia Admitted Activity Overview
Ramsay Australia Admitted Activity Overview For personal use only Capital investment, specialty strategies, public partnerships, Emergency Department Contribution to Growth and increased emergency services expected to drive New ED ongoing growth % of Inpatient Admissions ED Expansion from ED (FY23)
Slide 19: Market Share Growth
Market Share Growth For personal use only Ramsay’s investment in its hospitals and an integrated care network is expected to drive long term competitive advantage and market share growth • Ramsay has strategically located, high quality hospitals e.g. collocated with public, undertaking teaching and
Slide 20: Performance Improvement
For personal use only Performance Improvement ramsayhealth.com
Slide 21: Margin Improvement
Margin Improvement For personal use only Ramsay Australia is undertaking a range of initiatives in FY24 that aim to drive margin improvement Ramsay Australia’s core growth slowed during Covid, with margins impacted by a range of factors including lower activity and higher costs Key Focus areas that
Slide 22: Performance Acceleration
Performance Acceleration For personal use only A range of specific initiatives being driven in prioritised waves by a dedicated Rapid Delivery Team to accelerate performance and drive margin improvement Take BEST PRACTICE from one site, apply to others Examples: Existing automations, CDS best practi
Slide 23: Strategy for Sustainable Growth
For personal use only Strategy for Sustainable Growth ramsayhealth.com
Slide 24: Strategy on a page
Strategy on a page For personal use only By growing, modernising and leveraging our And moving purposefully into New & Adjacent Services World Class Hospital Network Integrated patient- Strategic growth centred care Diagnostic Organic Strategic Extended Broader digi- New services, New payers in key
Slide 25: Capacity Expansion
Growing, modernising and Capacity Expansion leveraging our World Class Hospital Network For personal use only Ramsay has a strong pipeline of brownfield and greenfield opportunities, which aim to both enhance and expand our portfolio of facilities and drive future growth Historical Value of Approved
Slide 26: Developments underway
Growing, modernising and Developments underway leveraging our World Class Hospital Network For personal use only $636m of projects approved and underway delivering 355 net beds, 36 theatres, 45 consulting rooms FY24 FY25 Theatres/Cath Forecast Hospital State Project Description Gross Beds Net Beds C
Slide 27: Extending purposefully in key geographic areas
Extending purposefully in key geographic areas For personal use only Warringal Private Hospital, Victoria • Due to open in stages over 2024/25, this expansion aims to secure Ramsay’s position as the major private operator by market share in Melbourne’s fast-growing north-east and greater north growt
Slide 28: Meeting demand for more theatres in key locations
Meeting demand for more theatres in key locations For personal use only Sunshine Coast, Caloundra and Caboolture Corridor, Queensland • Planned total c. $36.1m expansion to further cement Ramsay's strong presence in the booming coastal network • Demand continues to grow from existing and new surgeon
Slide 29: Future major expansions in pipeline
Future major expansions in pipeline For personal use only Lake Macquarie Private Hospital, New South Wales • The staged masterplan development is expected to secure Lake Macquarie Private’s continued market position as a leader in specialist private care and further provides a vision for a truly com
Slide 30: Growing our surgical centre portfolio
Growing our surgical centre portfolio For personal use only Cleveland, Queensland • $16.3m greenfield development which will give RHC a purpose-built facility in a growth corridor that enables us to provide care to our patients in the most appropriate care setting • Takes advantage of growing popula
Slide 31: Striving for Clinical Excellence
Growing, modernising and Striving for Clinical Excellence leveraging our World Class Hospital Network For personal use only Ramsay is striving for clinical excellence in key therapeutic areas through investment in people and technology Orthopaedics Cardiology • Ramsay is a leading provider Cancer Ca
Slide 32: Expanding our Market Share in key therapeutic areas
Expanding our Market Share Growing, modernising and leveraging our World in key therapeutic areas Class Hospital Network For personal use only Market share1 Admitting Net Promoter Score Cancer care 25% ~3.5k 75 Pathology Endoscopy Diagnostics Surgery Medical Day oncology Radiotherapy Rehab/prehab Su
Slide 33: Providing convenient access and care coordination beyond the hospital walls
Providing convenient access and care coordination beyond the hospital walls For personal use only +2 pharmacies, expansion into 101 aged care, e-commerce and Pharmacies servicing non-hospital treatments 46 12 Short–stay Strong development pipeline in Surgical Centres planning stages 10 3 1 6 Nationa
Slide 34: New and innovative services
New and innovative services For personal use only Hi-tech heart health Culturally appropriate care Palliative care at home Ramsay’s new Virtual Heart Failure Service provides Ramsay Connect has been awarded a $1 million grant, Ramsay is launching a new Palliative Care and cardiac patients with remot
Slide 35: Delivering Service Excellence
Extracting the highest Delivering Service Excellence potential value by Operational Excellence For personal use only Net Promoter Scores Net Promoter Score (NPS) is a grade from -100 to +100 that gauges the willingness of customers to recommend a company’s products or services to others. Clinical Ex
Slide 36: Procurement Strategy
Extracting the highest Procurement Strategy potential value by Operational Excellence For personal use only Our procurement strategy is realising significant value across 10 priorities, under 3 pillars Spending Smarter Spending Smarter One Supply • volume aggregation and commitment “Leveraging our s
Slide 37: Digital & Data Transformation
Reinforcing Ramsay’s Digital & Data Transformation Strong Organisational Foundations For personal use only Our digital and data strategy aspires to leapfrog to become a benchmark in patient-centred, integrated care Transforming Ramsay Health Care into a “Best-in-class digital healthcare system to po
Slide 38: Investing in our people
Investing in our people For personal use only • In Top 10 most attractive employers in 2023 by HR services firm Randstad • 42% reduction in critical vacancies over the past 6 months • Employee turnover down 8% YOY GROWING OUR OWN: ➢ 815 graduate offers accepted in FY23 ➢ Cadetship Program sup
Slide 39: Contributing to a Sustainable Future
Contributing to a Sustainable Future For personal use only • • • Caring for our People Caring for our Planet Caring for our Community • 475 employees trained in Mental Health • Reduced energy intensity by 5.3% on FY20 • >250 clinical trials underway, five new sites First Aid • Reduced greenhouse gas
Slide 40: Closing Remarks
For personal use only Closing Remarks ramsayhealth.com
Slide 41: Key Takeaways
Key Takeaways For personal use only • Largest private hospital operator in attractive high growth markets Strong foundations as • #1 in key therapeutic areas – cardiac, cancer, orthopedics, which is hard to replicate Australia's #1 private • Long-standing and deep relationships with doctors and clin
Slide 42: For personal use only
For personal use only ramsayhealth.com 41
Slide 43: Today's discussion
Today’s discussion For personal use only The digital and data imperative 1 Ramsay’s digital and data ambition 2 3 Impact to date and roadmap ahead Key Takeaways 4 Questions 5 42
Slide 44: The digital and data imperative
Today’s discussion For personal use only The digital and data imperative 1 43
Slide 45: The digital & data transformation underpins Ramsay's 2030 strategy
The digital & data transformation underpins Ramsay’s 2030 strategy For personal use only OUR VISION: To leverage our global platform and be a leading healthcare provider of the future By growing, modernising and leveraging our And moving purposefully into New & Adjacent Services World Class Hospital
Slide 46: Healthcare is one of the least digitally mature industries
For personal use only Worldwide, healthcare is one of the least digitally mature industries Most Health Care Companies Lack Digital Maturity High The Health Care Industry Shows Low Maturity in Digital Comparison across industries Overall but the Medtech Sector is Leading (average DAI score) Technolo
Slide 47: Australian healthcare is undergoing key shifts
Australian healthcare is undergoing key shifts… necessitating more digital nous For personal use only New entrants Increasing healthcare Doctors increasingly Changes in model of Governments developing demand and tight exploring digital- care enabled by enabling different compelling scale labour supp
Slide 48: Generative AI will further accelerate adoption of technology in healthcare
Generative AI will further accelerate adoption of technology in healthcare For personal use only AI technology is likely to be the largest and fastest tech cycle yet... … with major players rapidly developing GenAI-enabled platforms that are relevant in solving healthcare use cases Microsoft Google
Slide 49: Opportunity to unlock value by evolving technology and data foundations
Ramsay has significant opportunity to unlock value by evolving its technology and data foundations For personal use only Opportunity Pain point Streamline / reduce process • Site-centric processes, with significant variation and few consistent practices across sites variability and drive scale • Lim
Slide 50: Ramsay's digital and data ambition
Today’s discussion For personal use only Ramsay’s digital and data ambition 2 49
Slide 51: Our digital ambition is to leapfrog, not just catch-up
Our digital ambition is to use our late mover advantage to leapfrog… not just catch-up Our A best-in-class digital health care system to position Ramsay as a global benchmark in For personal use only vision integrated care for better doctor, patient and Ramsay team outcomes. For doctors For patients
Slide 52: Learning from and linking to leading global providers
We are learning from and linking to leading global healthcare providers, big tech and thought leaders For personal use only 51
Slide 53: Our Digital 2030 strategy: four transformation pillars
Our Digital 2030 strategy: four transformation pillars are enabled by cultural, technology and governance foundations For personal use only Digital ambition Our 'North Star' “Best-in-class digital health care system to position Ramsay as a global benchmark in patient centric integrated care" ~9% ~45
Slide 54: Building blocks of our transformation
The building blocks of our transformation reflect global best practice and are distinct to how digital programs have traditionally been led in Healthcare For personal use only Modular systems Two-speed: and standardisation: momentum from re-usability, Ensure the impact: immediate value & scalability
Slide 55: Focus on the what and the how
Our approach ensures a clear focus on the what (value delivery) and the how (desired culture for sustained success) For personal use only WHAT HOW 54
Slide 56: Impact to date and roadmap ahead
Today’s discussion For personal use only 3 Impact to date and roadmap ahead 55
Slide 57: Five-year strategic digital road map
A sequenced five-year strategic digital road map has been developed to guide future investment around our four transformation pillars For personal use only “Best-in-class digital health care system to position Ramsay as a global benchmark in patient centric integrated care" 3. Effective data 1. Inte
Slide 58: The road map balances delivering value and managing complexity
The road map balances continuously delivering value and managing tremendous complexity and foundation build under the waterline For personal use only Digital solution design & strategy • Rigorous prioritisation • Customer insights and co-design • Prototyping and iteration Back-end architecture • Leg
Slide 59: The Ramsay Health Hub is our Digital Front Door
The Ramsay Health Hub is our Digital Front Door and the single entry into the 1 Integrated ecosystem for patient-centric care digital Ramsay Ecosystem – for our Patients, Clinicians, and Ramsay team For personal use only Patients will have a personalised, Clinicians will have greater visibility and
Slide 60: Healthcare trends elevate importance of connected workflows
2 Healthcare trends elevate the importance of building Clinical excellence connected workflows For personal use only Shift to hybrid models of Gen AI disruption: rise Integrated care: Shift to value–based Growing focus on Collective growing focus care of AI in healthcare increasing importance care c
Slide 61: Scope of Ramsay's Clinical Information System
The scope of Ramsay’s Clinical Information System is 2 Clinical excellence modular, lean and value-oriented For personal use only Adaptability to future change Clinical interoperability & orchestration Population Health Management Longitudinal Patient Records Across Care Settings Value based care •
Slide 62: Clinical ownership and engagement is paramount
Clinical ownership and engagement is paramount and core to our 2 Clinical excellence selection and implementation plans for our clinical information system For personal use only An uplift in VMO experience and efficiency through… Digitally-enabling and Connecting health Providing right data, to the
Slide 63: The Ramsay Data Hub
The Ramsay Data Hub is a single integrated, near real-time 3 Effective data driven actions, decisions, and outcomes foundational platform for clinical and non-clinical data For personal use only Non-aligned data stored on a …will be systematically migrated to one secure … with compelling benefits pl
Slide 64: Potential Generative AI opportunities
3 Effective data driven actions, Our potential Generative AI opportunities target key stakeholders and decisions, and outcomes select appropriate solutions for different use cases For personal use only Technological Simplicity VMOs and their clinical staff Patients and their families Digital Front D
Slide 65: Automation has enabled a new digital workforce
Automation has enabled Ramsay with a new digital workforce, 4 Digitally enabled operating environment saving more than 5k hours each month For personal use only Extract from data dashboard tracking automation impact Highlights • Accelerated growth in both hours saved and automations activated • Duri
Slide 66: Safeguarding digital assets and data against cyber threats
We are proactively safeguarding our digital assets and data 4 Digitally enabled operating environment against evolving cyber threats to ensure business continuity and protect sensitive information For personal use only • ✅ Network Segmentation • Digital Identity for all – Staff, Doctors, Patients Tr
Slide 67: Roadmap spans three horizons
Our roadmap spans three horizons with a focus on continuously delivering value as we build digital maturity and leadership For personal use only HORIZON 1 | BUILD FOUNDATIONS HORIZON 2 | SCALE HORIZON 3 | ESTABLISH DIGITAL LEADERSHIP Implement foundations and establish Scale the transformation, add
Slide 68: Digital program expected to generate net positive EBITDA benefit in FY28
Our digital program is expected to generate net positive EBITDA benefit in FY28 For personal use only Digital program capex and net EBITDA impact A$ millions FY24 FY25 • Net EBITDA impact is expected to be CAPEX 16-18 70-80 breakeven in FY27 and a net benefit in FY28 Net EBITDA -60-70 -70-80 • Capex
Slide 69: Digital and data transformation expected to uplift EBITDA by FY30
Our digital and data transformation is expected to uplift EBITDA by FY30, alongside significant non-financial benefits and risk mitigations For personal use only Drivers of EBITDA Impact by FY2030 Non-financial benefits EBITDA • Superior clinical outcomes uplift • Strong doctor engagement • Exceptio
Slide 70: Key Takeaways
Today’s discussion For personal use only Key Takeaways 044 69
Slide 71: Key Takeaways
For personal use only Key Takeaways • Healthcare is one of the least digitally mature industries The digital & data • Australian healthcare is undergoing key shifts… necessitating more digital nous in the future transformation is a core part • Ramsay has significant opportunity to evolve its digital
Slide 72: Questions
For personal use only Questions ramsayhealth.com