Ramsay Health Care (RHC) Investor Update summary

Strategic positioning and market fundamentals

• Maintains a leading position in key therapeutic areas and high-growth regions, leveraging a diversified hospital portfolio and integrated care networks to drive competitive advantage.

• Strong industry fundamentals, including population growth, rising chronic disease, and an ageing population, underpin sustained demand for private healthcare services.

• Private health insurance membership is at record highs, with increasing coverage among younger demographics and more comprehensive policies, and coverage rising for 16 consecutive quarters.

• Public hospital waiting lists and wait times are at record lengths, increasing opportunities for private sector involvement and growth in public contracts.

• Private hospitals provide 66% of elective surgeries and 62% of mental health services, remaining a vital pillar in Australia's healthcare system.

Transformation and operational efficiency

• Launched a multi-year transformation program targeting margin improvement, productivity gains, and digital enablement, structured around optimising, reinforcing, and transforming the core business.

• Key priorities include volume growth, improved payer terms, productivity, procurement optimisation, digital/data enablement, and integrated care.

• Performance Acceleration program and data analytics tools are driving labour productivity and operational efficiency, with tangible cost savings and improved site performance.

• Procurement centralisation and digital tools have reduced new clinical product introductions by 50% and delivered AUD 5 million in Q1 savings, targeting AUD 20 million for FY 2025.

• Investment in foundational technology and modern HR systems is underway to enable scalable digital solutions and enhance employee engagement.

Growth strategy, network expansion, and service capabilities

• Expanding emergency departments and surgical centres in high-growth corridors, with major projects in Western Australia, Victoria, Queensland, and New South Wales.

• Portfolio optimisation includes consolidation, selective sales, and relocation of facilities to maximise returns and maintain leading positions.

• Leading provider in cancer, orthopaedics, cardiology, and mental health, with deliberate infrastructure and research investments to scale these service lines nationally.

• Developing downstream services such as Hospital in the Home, allied health, and mental health clinics to create integrated patient journeys and capture additional value.

• Public-private partnerships are expanding, with recent long-term agreements and a centralized public contract division to optimise revenue and efficiency.