Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Acurity Health expects subdued demand to continue into 2014

Acurity Health expects subdued demand to continue into 2014, Isaac says

By Tina Morrison

Aug. 9 (BusinessDesk) – Acurity Health Group, the private hospital operator formerly known as Wakefield Health, expects weak demand for private sector health care to continue in the current financial year.

Acurity’s net profit fell 2.3 percent in 2013 after private patient revenue, which makes up about 70 percent of total patient revenue, fell 1.4 percent as a sluggish economy prompted people to cancel or lower their private health insurance coverage and there was only small growth in Accident Compensation Corp and District Health Board work. At the same time, the company faced higher wage and building insurance costs.

“In general, we expect a continuation of the trends evident in 2013,” chairman Alan Isaac said in notes for delivery at the company’s annual meeting in Wellington. “We will see subdued demand, particularly for private patients and expect minimal change to ACC and DHB revenues.”

New ACC contracts agreed for the June 2014 year allow for only minimal price and volume growth, Isaac said.

Meanwhile DHB revenues will continue to be subject to short-term volatility, except for a three-year agreement in the Hawkes Bay, which will see some uplift in revenue from the addition of a fourth operating theatre.

Cost pressures will continue from wage increases however insurance premiums are stabilising after significant increases in the past few years, he said.

Shares in Acurity dropped 1.9 percent to $4.22.

Acurity expects to finalise redevelopment plans for its Wakefield Hospital in coming months as it weighs up the need for seismic strengthening with the future needs of the Wellington market and its recent investment in Bowen Hospital, Isaac said.

The company is open to opportunities for mergers or acquisitions that would add significant value to the group and offer geographic diversification, he said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>


Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>


Economy: Supply Chain On Brink Of Overload Says National Road Carriers

The New Zealand supply chain is on the brink of overload and it looks like the upcoming peak imports season may push it over the edge says National Road Carriers Association (NRC) CEO David Aitken. “Worldwide supply chains are in disarray,” says Mr Aitken. ... More>>

Stats NZ: Annual Goods Trade Surplus At 28-Year High

New Zealand’s annual goods trade surplus reached a 28-year high of $2.2 billion as imports tumbled in the year ended October 2020, Stats NZ said today. “This is the largest annual surplus since the July 1992 year, driven mainly by much lower ... More>>

ComCom: How Real Is That Bargain?

The Commerce Commission urges retailers and consumers to think hard about the bargains being offered as ‘Black Friday’ and Christmas draw near. Black Friday has now overtaken Boxing Day in terms of retail spending, according to data from electronic ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>


Forest & Bird: Kākāpō Wins Bird Of The Year 2020

The nation has voted and Aotearoa New Zealand has a new Bird of the Year. New Zealand’s moss-colored flightless parrot has climbed to the top-spot for the second time in Forest & Bird’s annual Te Manu Rongonui o Te Tau/Bird of the Year competition. ... More>>