There is still uncertainty about amendments to the Swiss Health Insurance Act, which are due to be implemented next year, according to Medi-Clinic.
The listed hospital group is also concerned about the “dual role” of the cantons, which will become regulators and service providers. Cantons are the equivalent of provinces in South Africa.
The group owns Hirslanden in Switzerland.
Fixed fees for inpatient services based on diagnosis-related groups will be introduced. There will be a new hospital financing system, which redefines the funding proportions of the cantons versus the health insurance companies.
The facility lists that will name hospitals and clinics that are eligible to treat mandatorily insured patients will be revised. One intention of the change is to introduce competition between hospitals.
Those included in the hospital lists will be treated equally in terms of financing and will receive funding from both the cantons and health insurance companies.
Ole Wiesinger, the chief executive of the Swiss operations at Medi-Clinic, said yesterday: “Cantons will be responsible for planning but cantons themselves own hospitals and they run them. They are the biggest competitor to the private sector. There are 10 different cantons and that means there will be 10 different approaches.”
In a statement to the JSE yesterday the company said: “The conflict of interest arising from the dual role has resulted in sometimes questionable cantonal requirements for inclusion in the hospital list, protecting the public hospitals against private sector competition.”
Uncertainty also comes from the fact that lists are not yet finalised. “It is not yet possible to assess the consequences of the act for Hirslanden, including any quantification of the financial effect of the changes,” Medi-Clinic said.
Wiesinger said the group was optimistic and was working closely with the Swiss government. Medi-Clinic continued to invest in the business. Expansion work had already begun using R1.3 billion raised from a rights offer.
The number of fully operational inpatient beds in Switzerland increased from 1 365 to 1 457.
Klinik Beau-Site in Berne will be expanded by 23 beds while at Klinik Hirslanden, 71 inpatient beds and eight intensive care unit beds will be added. Klinik Bois-Cerf will commission a new radiology department early next year.
In its results for the year to March, also released yesterday, Medi-Clinic said group revenue surged 9 percent to R18.6bn.
Core headline earnings increased by 27 percent to R1bn while core headline earnings a share grew 20 percent to R1.796.
Craig Tingle, the group financial officer, said there had been organic growth in all its platforms.
Koert Pretorius, the chief executive of Medi-Clinic Southern Africa, said growth was backed up by an increase in medical aid membership, which was at 8.3 million by the end of the third quarter last year.
“More than 90 percent of our patients belong to medical aid schemes. It is important to keep in mind that in South Africa, people who belong to medical aid don’t have an alternative,” Pretorius said.
In southern Africa, building projects will add 158 beds in the 2012 financial year and 74 beds will follow in 2013. Approved projects for the next 12 months include a new 174-bed hospital in Centurion and a 148-bed hospital in Namibia.
The shares fell 0.67 percent to R29.70 yesterday. - Business Report