Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Investing in Healthcare Conference 2008
25 slides from Ramsay Health Care's conference presentation, Oct 30, 2008
Slide 1: The Independent Hospital Sector
For personal use only The Independent Hospital Sector Jill Watts, CEO, Ramsay Health Care, UK Investing in Healthcare Conference 29 October 2008 1
Slide 2: Agenda
Agenda For personal use only • Overview of Ramsay Health Care • The Independent Hospital Sector • UK Market observations • Opportunities and Risks for Investors • Differences between the UK and Australian sector
Slide 3: Ramsay Health Care
For personal use only Ramsay Health Care
Slide 4: Ramsay Health Care
Ramsay Health Care For personal use only • Established in 1964 by Paul Ramsay – celebrating 44 years in the Australian Healthcare industry • Listed on Australian Stock Exchange in 1997 • Own and operate over 100 hospitals & day surgery facilities across Australia, UK & Indonesia • Employs over 25,00
Slide 5: Ramsay Health Care Profile
Ramsay Health Care Profile For personal use only UK Indonesia Australia Total Hospital & Facilities* 36 3 64 103 Beds 1,098 615 6,724 8,437 Operating Theatres 48 11 220 279 Admissions FY08 47,000 36,000 693,000 776,000 *Includes day surgery centres, rehabilitation and psychiatric units
Slide 6: Ramsay UK
Ramsay UK For personal use only Ramsay acquired Capio UK, Private hospitals in late 2007 ISTCs Day treatment centre Neuro rehabilitation homes Portfolio includes: • 23 hospitals • 9 day surgery facilities • 2 neuro-rehabilitation centres Cobalt • Diagnostic services Tees Valley Clifton Park Yorkshir
Slide 7: Why the UK Market?
Why the UK Market? For personal use only • Good potential for growth in UK Market and expansion of the independent sector’s role in the NHS market was an attraction • Private Medical Insurance (PMI) a stable market • Capio was seen as a quality group of hospitals and the size of the portfolio a good
Slide 8: Ramsay – year on
Ramsay – 1 year on For personal use only • Ramsay’s UK presence is growing strongly
Slide 9: Security of Funding
Security of Funding For personal use only • Refinanced senior debt in November 2007 to accommodate the Capio UK acquisition and provide future growth funds • Have committed debt funding to November 2012 • Ramsay has a conservative approach to the management of interest rate & currency risk exposures
Slide 10: A Growth Strategy
A Growth Strategy For personal use only • Organic growth ¾ Investing in existing business ¾ Improving quality of our facilities and acuity of our hospitals ¾ Brownfield expansion programme • Ramsay have committed to a 17% increase in theatre throughput capacity • Capex of £28 million approved over F
Slide 11: Independent Hospital Sector in the UK
For personal use only Independent Hospital Sector in the UK
Slide 12: UK Acute Hospital Sector
UK Acute Hospital Sector For personal use only • 180 private hospitals and 359 public hospitals • Acute Sector dominated by five key operators, GHG, Spire, Nuffield, Ramsay and HCA • 13% of population covered by PMI – 1.8 million covered by individual insurance – 4.8 million covered by group polices
Slide 13: UK Private Health Expenditure
UK Private Health Expenditure For personal use only Source OECD Health Data 2008
Slide 14: Independent Sector and NHS Care Provision (ISTC wave sites)
Independent Sector and NHS Care Provision (ISTC wave 1 sites) For personal use only
Slide 15: Independent Sector and NHS Care Provision (ISTC phase 2)
Independent Sector and NHS Care Provision (ISTC phase 2) For personal use only
Slide 16: Independent Sector and NHS Care Provision (ECN sites)
Independent Sector and NHS Care Provision (ECN sites) For personal use only 139 sites approved to list services through the Extended Choice Network
Slide 17: UK Market Observations
For personal use only UK Market Observations
Slide 18: UK Market Observations
UK Market Observations For personal use only • Strong industry fundamentals with ageing population and increasing life expectancy • Robust PMI market – still growing • NHS committed to pluralism and creating competition within the marketplace • Growing distinction between PCT Commissioner and Provid
Slide 19: Growth of Free Choice
Growth of Free Choice For personal use only • Irreversible shift in the landscape with the introduction of Free Choice • Referrals to the independent sector up 60% since 1 April • Ramsay NHS activity has increased 237% in past year and is now nearly one third of our UK activity • Effective different
Slide 20: The Patient Perspective
The Patient Perspective For personal use only • Satisfied patients are a critical part of our success • ISTC Patient Satisfaction at 97% • ISTC clinical outcomes same as or better than NHS for all procedures • Independent Sector MRSA rates negligible • The NHS partners network the taking a lead role
Slide 21: Opportunities and Risks
For personal use only Opportunities and Risks
Slide 22: The Next Years - Opportunities
The Next 3 Years- Opportunities For personal use only • Growth of the NHS and Patient choice • Strengthening the PMI and self insurance product and introdcuing new products • Investment in facilities and differentiation - giving consumers more reasons to use private healthcare facilities • Marketing
Slide 23: The Next Years - Risks
The Next 3 Years - Risks For personal use only • Credit crunch and lack of investment back into the industry • PMI and NHS Tariff • Industry inability to implement new models of care or change cost structure • The speed at which the NHS can drive change • Local political agendas and transfer of NHS
Slide 24: The Ramsay outlook on the UK Independent Sector
The Ramsay outlook on the UK Independent Sector For personal use only A commitment from the top “Ramsay has not looked back since entering the UK market. Government reform of the UK health care system has opened the private hospital market to everyone and we are excited about the opportunities this
Slide 25: Thank You
For personal use only Thank You
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