Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Investor Presentation (October 2024)
76 slides from Ramsay Health Care's investor presentation, Oct 24, 2024
Slide 1: Ramsay Health Care Australia Presentation (ASX Announcement)
ASX ANNOUNCEMENT 24th October 2024 RAMSAY HEALTH CARE AUSTRALIA PRESENTATION Ramsay Health Care (Ramsay) (ASX: RHC) is hosting an investor briefing today in Perth covering Ramsay Health Care Australia’s business and strategy. The briefing will be hosted by Ramsay Health Care Australia CEO, Carmel Mo
Slide 2: Investor Presentation
Investor Presentation Carmel Monaghan Chief Executive Officer Ramsay Australia 24 October 2024 ramsayhealth.com.au
Slide 3: Important information
The information in this presentation is These factors include general economic 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 governmental authoriti
Slide 4: Agenda
01 Sustainable Growth Strategy 02 Market fundamentals 03 Driving improved performance Agenda 04 Developing comprehensive networks 05 Expanding clinical capabilities 06 Investing in our people & communities 07 Key takeaways 3 Investor Presentation, Oct 2024
Slide 5: Key Takeaways
Key Takeaways Ramsay is well positioned to take advantage of strong industry fundamentals and deliver improved operating performance. Strong long- Our competitive There is more term industry advantage is potential in our fundamentals unrivalled core Enduring long-term trends such as the Ramsay’s com
Slide 6: Celebrating 60 Years of Caring
The Ramsay Way • We value strong relationships • We aim to constantly improve • We seek to grow sustainably Our Purpose People caring for people. Our Vision To be a leading healthcare provider of the future. Our Mission Creating a best-in-class, digitally enabled healthcare ecosystem – to change wha
Slide 7: A leading healthcare provider
A leading healthcare provider Driving success with network growth, financial discipline, operational excellence and a vibrant culture. • Rich history, privileged position in Australian private hospitals, market share c.2x nearest competitor1 • Leading the way in meeting rising demand for care outsid
Slide 8: Delivering customer excellence
Delivering customer excellence Net Promoter Scores1 A Net Promoter Score (NPS) is a grade from -100 to +100 that gauges our customers’ willingness to recommend Ramsay products and services to others. 1) Scores are for FY24.
Slide 9: Excellence in patient outcomes
Excellence in patient outcomes • All sites subject to short notice assessment have been fully accredited • National Maternity Program ~900 midwives trained • Safety huddles across all facilities • Doctor panels across major therapeutic areas • Workers’ comp claims down 40% since joining Comcare • 6t
Slide 10: Our enduring strengths remain...
Our enduring strengths remain... Our unwavering commitment to ‘People caring for people’ remains the heart of our business. Delivering high quality clinical outcomes for our patients. Partnering with doctors to deliver exceptional outcomes. Empowering our people through “The Ramsay Way”. 9 Inv
Slide 11: ...and we will drive more value
...and we will drive more value We will seek to leverage our core business to drive improved returns. • Opportunity to Optimise the business and drive more value from the core and capitalise on growing demand. • Opportunity to Reinforce the core by expanding our network with integrated, digitally en
Slide 12: Sustainable Growth Strategy | RHCA 2030
Sustainable Growth Strategy I RHCA 2030 Our Vision Our Mission To be a leading Creating a best-in-class, digitally enabled healthcare provider healthcare ecosystem – to change what of the future. is possible for your health. Develop coordinated and integrated health care networks and new care pathwa
Slide 13: Sustainable Growth Strategy | RHCA 2030
Sustainable Growth Strategy I RHCA 2030 Ramsay is accelerating our strategic objectives by harnessing our core strengths: Leveraging scale Disciplined financial management Exceptional clinical outcomes Deep relationships with doctors Strong operational experience ‘The Ramsay Way’ culture
Slide 14: Market Fundamentals underpinning outlook
Market Fundamentals underpinning outlook ramsayhealth.com
Slide 15: Navigating uncertain times
Navigating uncertain times 14 Investor Presentation, Oct 2024
Slide 16: Strong underlying demand for health services
Strong underlying demand for health services Meeting the needs of Australia’s growing and ageing population. Strong population growth + Higher cancer incidence Growing hospitalisations aging profile • High population 35 22% 700 14.0 500.0 Incidence per 100,000 population growth in over 65s of 650 To
Slide 17: Private hospitals: a pillar of the system
Private hospitals: a pillar of the system The private sector has a vital role in Australia’s healthcare landscape. • Private hospitals 651 66% 61% 62% 62% provide a Private Hospitals of all elective of sub and of all mental of surgical significant (compared to 689 public) surgery non-acute services
Slide 18: Public hospital elective surgery waiting times
Public hospital elective surgery waiting times The public sector continues to experience increased wait times and less surgeries completed on time. Median wait times for planned surgery are at their longest National Category 2 planned surgery admissions - on record at 49 days, compared to 27 days in
Slide 19: Public activity
Public activity Ramsay’s public contracting eases the pressure on public hospitals while diversifying our revenue. Public Admissions in Ramsay’s Non-public Hospitals1 • Public contracting division established within Ramsay in 2022 to drive improved relationships & longer-term growth as well as centr
Slide 20: Positive outcomes from public partnerships
Positive outcomes from public partnerships 19 Investor Presentation, Oct 2024
Slide 21: Workforce and wage cost growth
Workforce and wage cost growth Workforce shortages are largely alleviated. Payor terms and indexation must be appropriate. • Increasing growth in workforce has largely Growth in Nursing Workforce alleviated the demand/supply imbalance that was evident during COVID 400 12.0% 359 • Minimal impact from
Slide 22: Driving Improved Performance
Driving Improved Performance ramsayhealth.com
Slide 23: Transformation pillars
Transformation pillars Realising our strategic ambition, driving efficiencies and improving margins requires investment and disciplined execution. OPTIMISE REINFORCE TRANSFORM 1. OPTIMISE THE CORE 2. REINFORCE THE CORE 3. TRANSFORM THE CORE Standardising to monetise scale, Expand as a digitally inte
Slide 24: Optimise the Core: Performance Improvement Priorities
Optimise the Core: Performance Improvement Priorities Ramsay Australia’s immediate focus is on improving margins. • Promote a growth focus, with best practice for site-level engagement with doctors embedded to drive recruitment and volume uplift Volume #1 Growth • • Driving greater insights, better
Slide 25: Digital Enablement: Driving efficiencies and improving margins
Digital Enablement: Driving efficiencies and improving margins Continued margin improvement will need to be underpinned by increased digital and data investment, including redesign and digitisation of workflows. Leverage Redesign Digitise DATA PROCESSES WORKFLOWS Use real-time, drillable, and Map ne
Slide 26: Developing comprehensive healthcare networks
Developing comprehensive healthcare networks ramsayhealth.com
Slide 27: Our extensive & diversified care network
Our extensive & diversified care network Delivering industry-leading care at scale with over 200 Ramsay facilities. Ramsay AI driven Surgical centres Health healthcare Hub Regional Specialists GPs Emergency Hospital in Regional the Home Payor & Doctor hospitals Departments Multidisciplinary Queensla
Slide 28: Ramsay in Western Australia
Ramsay in Western Australia Two major centres of excellence alongside lower acuity services & spokes providing integrated care. Joondalup Health Campus Hollywood Private Hospital Joondalup Private Hospital Australia’s largest private hospital Ramsay Health Plus – Joondalup Psychology Clinic – Joonda
Slide 29: Victorian market
Victorian market Hospitals1 16 at Ballarat Stand-alone Surgical Centres 2 Mental Health Hospitals 1 Stand-alone Rehab Hospital 1 Emergency Departments2 2 Operating Theatres 91 Beds ~1,500 Community based pharmacies 12 Psychology Clinics 4 Ramsay Health Plus 7 Ramsay Ramsay Ramsay Ramsay Health Plus
Slide 30: SE Queensland market
SE Queensland market Hospitals1 14 Stand-alone Surgical Centres 3 Mental Health Hospitals 3 Emergency Departments 5 Operating Theatres ~125 Beds ~2,240 Franchised Community Pharmacies 26 Psychology Clinics 5 Ramsay Health Plus 4 Ramsay Ramsay Ramsay Ramsay Health Plus Pharmacy Facilities Psychology
Slide 31: Focused Investment in Facilities
Focused Investment in Facilities Theatre Expand in Bolster leading Emergency Surgical Portfolio Focus growth corridors positions Departments Centres Optimisation Expand theatre Continue to selectively Expand Health Expand emergency Enter new catchments Consolidation of capacity to meet expand market
Slide 32: Extending purposefully in key geographic areas
Extending purposefully in key geographic areas South-East Queensland • Planned total c.$79m in expansions to further cement Ramsay's strong presence in the booming coastal network. • New operating theatres (3 in Sunshine Coast, 2 in St Andrews, 2 in Caloundra) plus additional theatre shells. • Expan
Slide 33: Focusing on key centres of excellence
Focusing on key centres of excellence Joondalup Private Hospital, Western Australia • Commenced $190m expansion of private hospital co-located on Joondalup Health Campus, with standalone state-of-the-art theatre complex and new beds. • Supports public hospital and provides additional capacity to exi
Slide 34: Consolidating our position in regional areas
Consolidating our position in regional areas Ramsay proactively manages its portfolio in line with service demand, to maximise return on invested capital • Murray Valley Private was not performing and the facility was in need of enhancement. Albury • The rehabilitation service was relocated and cons
Slide 35: Growing our surgical centre portfolio
Growing our surgical centre portfolio Queensland Ramsay Surgical Centre Cleveland: $16.3 million greenfield development with 3 theatres (potential for a 4th) tailored to meet growth in the Redlands area; offers specialties like gastroenterology, orthopaedics, urology, and more. Completion expected e
Slide 36: Emergency Growth Strategy
Emergency Growth Strategy Our EDs are strategically located to offer accessible 24/7 emergency care in key regions throughout Australia. Non-public Funded ED Admissions1 New ED ED Expansion % of Inpatient Admissions • Key source of acute from ED (FY24)1 Warringal CY26 patients • Extends our relation
Slide 37: Developments underway
Developments underway Concentration on adding procedural capacity and developments in high growth areas. SHIFT TO THEATRE FOCUS COMMITTED INVESTMENTS Ramsay built: FY25 greenfield and brownfield development capex is expected to be in the range $250-280m focused on expanding treatment capacity and fo
Slide 38: Expanding clinical capabilities to drive market share growth
Expanding clinical capabilities to drive market share growth ramsayhealth.com
Slide 39: Expanding market share in key therapeutic areas
Expanding market share in key therapeutic areas Through investment in our people and technology, Ramsay is striving for clinical excellence and more integrated care within key therapeutic areas. Private Admitted Activity Market Share1 Admitting specialists Net Promoter Score Cancer care 25% ~2.7k 76
Slide 40: Clinical Excellence – Orthopaedics
Clinical Excellence – Orthopaedics Ramsay’s investment in theatres & equipment makes it a leader in orthopaedics. • Ramsay is a leading provider of joint replacement surgery – 5 hospitals in top 10 (public RAMSAY and private) 4% 3% • 1 in every 5 knee replacements and 1 8yr CAGR 8yr CAGR in every 6
Slide 41: Clinical Excellence – Cancer
Clinical Excellence – Cancer Ramsay is the largest private provider of integrated cancer services and largest private clinical trials network in the country. • Expanded cancer offering across our network meaning more than 50 hospitals now deliver cancer surgery, RAMSAY 25 co-located chemotherapy uni
Slide 42: Clinical Excellence – Cardiology
Clinical Excellence – Cardiology Our comprehensive network makes us a leader in cardiology in Australia. • Ramsay delivers 12% of cardiac surgery procedures in Australia & 15% of all TAVIs (public & RAMSAY private: ANZCTS) • 11 Ramsay hospitals undertaking TAVI 5% 3% • Ramsay Connect Virtual Heart F
Slide 43: Clinical Excellence – Mental Health
Clinical Excellence – Mental Health Ramsay is focused on improving utilisation of our mental health capacity. • A focus on improving our core mental health business – including the recruitment of psychiatrists and investment in digital solutions (e.g. MH Digital Intake solution) to RAMSAY provide qu
Slide 44: Investing in our People & Communities
Investing in our People & Communities ramsayhealth.com
Slide 45: Developing capability and culture
Developing capability and culture GROWING OUR OWN • >1m student placement hours Top 6 • Increased graduate intake World’s top • 650 cadets healthcare • 46 enrolled in masters of mental health companies for • 72 enrolled in nurse practitioner program women #1 Graduate PROFESSIONAL DEVELOPMENT employe
Slide 46: For our people, for our planet, for our community
for our people for our planet for our community • Achieved gender targets: >16.8% 60% reduction in greenhouse gas emissions of suppliers by spend independently (2020 baseline). assessed for sustainability. On track to meet 80% target by FY26. • Achieved FY24 GHG reduction target and on track for 42%
Slide 47: Key Takeaways
Key Takeaways ramsayhealth.com
Slide 48: Key Takeaways
Key Takeaways Ramsay is well positioned to take advantage of strong industry fundamentals and deliver improved operating performance. Strong long- Our competitive There is more term industry advantage is potential in our fundamentals unrivalled core Enduring long-term trends such as the Ramsay’s com
Slide 49: Investor Presentation
Investor Presentation Dr Rachna Gandhi Chief Digital & Transformation Officer Ramsay Australia 24 October 2024 ramsayhealth.com.au
Slide 50: Our transformation program
01 Our transformation program 02 Designed to deliver impact - maximising value, minimising risk Agenda 03 Our transformation investment 04 Key takeaways 2
Slide 51: Key Takeaways
Key Takeaways Realising our strategic ambition, driving efficiencies and improving margins requires investment and disciplined execution Our core business has more Our transformation is focused on growth potential creating value Our core business has more potential, and our Our response has been wel
Slide 52: Our transformation program
Our transformation program 4
Slide 53: Transformation pillars
Transformation pillars Realising our strategic ambition, driving efficiencies and boosting margins requires investment and disciplined execution OPTIMISE REINFORCE TRANSFORM 1. OPTIMISE THE CORE 2. REINFORCE THE CORE 3. TRANSFORM THE CORE Standardising to monetise scale, Expand as a digitally integr
Slide 54: Transformation priorities
Transformation priorities The first couple of years for the transformation comprise six clear priorities that focus on growth, Needsmargin designimprovement and laying the groundwork for long term competitive advantage 1. OPTIMISE THE CORE 2. REINFORCE THE CORE Sustainable operational efficiencies A
Slide 55: Designed to deliver impact – maximising value, minimising risk
Designed to deliver impact – maximising value, minimising risk 7
Slide 56: Designed to delivery impact
Designed to delivery impact We’ve hit the ground running, registering significant progress in optimising the core and testing Needsanddesign learning to expand integrated patient centric care through digitally enabled healthcare networks Maximising value…. Prioritising initiatives that are value-add
Slide 57: Growth with priorities
Growth withpriorities Transformation Volume greater insights and digital tools While there is a significant amount of good work happening across our business aimed at growth, our potential has been constrained by: In a matter of weeks, an early pilot is already seeing: • 32% growth in a robots utili
Slide 58: Expanding our Doctor value proposition to support Volume Growth
Expanding our Doctor value proposition to support Volume Growth The transformation addresses growing doctor needs for support with their practice and modern digital tools In Progress Multidisciplinary Teams & AI Clinical Documentation Integrated Care Ways of Working In Progress Launched VMO Hub, inc
Slide 59: Improved Productivity
Improved Productivity Transformation through the Performance Acceleration program priorities A carefully designed program to identify and capture benefits in Operations Improving pricing and service optimisation Take BEST PRACTICE from one site, apply to others $1.0m Captured Q1 FY25 $6M Target FY25
Slide 60: Improved Productivity through analytics and predictive modelling
Improved Productivity through analytics and predictive modelling Theatre Staffing Insights Suite driving behaviour change to optimise staff resourcing $2.5M (Captured Q1 Real-time analytics Performance Real time Predictive FY25) unlocking value in our monitoring analytics modelling supply chain thro
Slide 61: Improved Productivity through AI innovation
Improved Productivity through AI innovation Moving from…. Clinicians have always been required to To…. Clinicians powered by AI Clinical scribe consultations in clinical settings Documentation with ambient and dictation. Increased Doctor satisfaction, productivity and document quality • Innovation 1
Slide 62: Improved Productivity through digitising patient experiences
Improved Productivity through digitising patient experiences Two examples To…. End to End digital patient admission experience (discharge experience underway). Real-time patient tracking significantly reducing Moving from….Patients encounter calls from families and offering data insights to optimise
Slide 63: Procurement optimisation
Procurement optimisation Transformation prioritiesdriving savings Moving from…. Good practice procurement across ~60% of To…. Best practice procurement across all our supplier spend, with a decentralised approach leading to an our spend, leveraging our scale by buying increase in suppliers and produ
Slide 64: Laying the groundwork for digitally enabled integrated care
Laying the groundwork for digitally enabled integrated care Joining up our quality episodes of care by acting as a Care Navigator for patients Patient expectations are shifting – patients are fatigued by high friction hand-offs between care settings and increasingly expect integrated solutions AI dr
Slide 65: Minimising risk
Minimising risk Our transformation is designed to minimise risks on the road to value Modern Foundational Technology 1 Foundations that will enable us to 1 unlock our transformation benefits Disciplined Delivery Methods A critical stage gate process to ensure 2 our capital is only committed to value
Slide 66: The current state of our technology
The current state of our technology 1 2 3 Outdated technology Paper based People are the ‘patch’ processes for the system Impacting run costs, employee $22M+ Spent on paper and storage Significant time spent and doctor experience and speed annually on administrative tasks of Transformation and docum
Slide 67: Foundational technology gaps can constrain benefits and are being addressed
Foundational technology gaps can constrain benefits and are being addressed 1 2 3 OUR TRANSFORMATION The benefits of our transformation program can only be achieved... MODERNISATION OF OUR FOUNDATIONAL TECHNOLOGY …when the technology and Missing or non-optimal Technology foundations not Technology f
Slide 68: Closing foundational technology gaps to enable our people
Closing foundational technology gaps to enable our people 1 2 3 To…. Moving from…. A unified platform providing core people data, automated processes and self-service functionality, and enabling strategic and Manual and paper-based workforce tactical workforce management across Ramsay management imp
Slide 69: Disciplined delivery methods
Disciplined delivery methods Comprehensive stage gates are built-in to fund only high-impact initiatives 1 2 3 Business Needs Led Clear Accountability Modular Technology Ensure the Focus on Value impact The building blocks of our transformation World class Co-design & Think big, start Scale (Adoptio
Slide 70: Focus on value management
Focus on value management Our lead and lag success measures have been carefully curated to ensure a balanced perspective across financial, operational and people dimensions 1 2 3 22 Investor Presentation, Oct 2024
Slide 71: Our transformation investment
Our transformation investment 23
Slide 72: Investment profile with a return to positive EBIT by FY28
Investment profile with a return to positive EBIT by FY28 Margin tailwinds from FY26 as investment remains largely flat, but benefits continue to increase Net Transformation OPEX1 + D&A ($M)2, 3 $90M (Transformation & Foundational Technology Modernisation) $60M Net EBIT benefit / (investment) $30M N
Slide 73: Our transformation investment
Our transformation investment Based on our approach to de-risk, the majority of the total investment to FY29 is uncommitted Transformation Spend (Opex + Capex) ($M) Transformation Spend (Opex + Capex) ($M) (FY25, categorised by priorities) (Committed vs Uncommitted) Foundation Modern Tech. Corporate
Slide 74: Key takeaways
Key takeaways 26
Slide 75: Key Takeaways
Key Takeaways Realising our strategic ambition, driving efficiencies and improving margins requires investment and disciplined execution Our core business has more Our transformation is focused on growth potential creating value Our core business has more potential, and our Our response has been wel
Slide 76: Questions
Questions ramsayhealth.com
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