Netcare Limited JSE: NTC

Netcare shares

Background of Health Partners For Life Limited

  • Netcare, the healthcare giant has a Broad Based Black Economic Empowerment initiative called Netcare’s Health Partners For Life. It is an empowerment transaction which sees Netcare establish a number of BEE Trusts, that qualifying shareholders can buy into and participate in. The BBBEE share scheme, established in 2005 will see 160 million shares sold to qualifying groups. Netcare is listed on the Johannesburg Stock Exchange (JSE).

    Participation is open to the following groups:

     The patient care and passionate people trust

     The physician partnership trust

     The mother and child trust

     The healthy lifestyle trust

    The establishment of the trusts as part of the HFPL initiative is on the understanding that a large number of the awarding of units in these Trusts will advance broad based black economic empowerment in communities selected in light of their relation to or involvement with healthcare in SA and or Netcare.

  • The agreement also stipulates that the selected communities of each of the Trusts are South African citizens and permanent residents.

    They must also be:

     Employees of Netcare and its subsidiaries including nurses, paramedics and other care givers and Netcare management and staff. To be eligible for the Patient Care and Passionate People Trust

     Healthcare professionals such as doctors, registrars, academics, medical students and medical professionals working in rural areas where the need for quality medical treatment is more urgent, to be eligible for the Physician Partnership Trust

     Runners of children and women organisations focusing on their interests, to be eligible for the Mother and Child Trust

     Organisations and individuals promoting a healthy lifestyle through wellness programmes and healthy lifestyle choices regarding physical activity, weight loss and proper nutrition. Selected national sporting bodies promoting sport in rural and underserved areas focusing on development and growth to 2010 and beyond.

    Netcare has elected to run and organise the trusts in the above manner so as to manage and administer the affairs of the Trusts consistently with Netcare’s commitment to empowerment and transformation.

Health Partners For Life Limited Shares Growth Driver

  • Netcare’s HPFL scheme does not have a business component, this means that any value that HPFL shareholders will get, will be through the Netcare share price and Netcare stock movement which will have an influence on how well the HPFL share price and HPFL shares do. In essence, the Group’s business model positions it as an intermediary between funders and doctors. Netcare is bound by a responsibility to provide the best possible healthcare outcomes to its common customer, the patient, in a responsible and efficient manner. For Netcare specifically, sustained investment in its management systems – which include quality leadership, human resources, continuous business improvement underpinned by increasing digitisation, and environmental sustainability – is vital to the quality of its relationships with these key stakeholders and the many other role players in the private healthcare value chain. The effectiveness of these systems determines the availability and affordability of the resources Netcare needs to operate, and thus the sustainability of its business model. Notable features of the Group’s strategic progress include a renewed effort to increase the consistency of care across its facilities, reflected in the generally positive performance against ambitious targets in quality outcomes, in recent history. Operational excellence, a Group-wide efficiency programme aimed at digitising and improving business processes, remained a key priority and is delivering efficiencies and supporting operating margins. Netcare’s human resources teams focused on facilitating these significant systems and process changes in both its markets, easing what was no doubt a challenging year for the people of the Group.

  • The environmental sustainability programme in the SA operations, targeted at securing the supply of electricity and water and reducing costs, is of a substantial scope by any measure and delivered the expected cost savings, while reducing the strain on municipal utilities. An appropriate system of internal controls is maintained to safeguard and manage Netcare’s assets, minimise losses arising from fraud and/or other illegal acts, and fairly present financial and operational information. Group Internal Audit fulfils an assurance and consulting function, and is mandated to provide independent and objective assurance over this system of internal controls. Group Internal Audit’s activities provide assurance to its stakeholders that Netcare operates in a responsible manner. During 2016, Netcare invested R824 million of capital (2015: R640 million) in the refurbishment of its facilities, excluding the relocated Netcare Christiaan Barnard Memorial Hospital, as well as the replacement and upgrade of medical equipment. Netcare extended practising privileges to 201 specialists, 33% of whom were attracted from competitors and 59% who practise in surgical disciplines.

Health Partners For Life Limited Group Investor Tip

  • A significant feature of Netcare’s financial performance in SA was integrating the 6% capacity Netcare added to its hospital network portfolio in 2015, this will surely serve to drive HFPL shares and HFPL share price. Although its new hospitals in Pinehaven and Polokwane recorded higher than anticipated occupancies, above 50% in September 2016 and earnings before interest, tax, depreciation and amortisation (EBITDA) is positive, they have yet to contribute to profit after tax. However, a 4.7% increase in patient days reflected sound growth and strong demand for its services in expansion areas in the year. Netcare increased its capacity by a further 1% in 2016 according to its own data. Despite a tough operating year, the Hospital division experienced strong patient day growth of 4.7%. this will be good encouragement for HFPL’s portfolio and stock. Excluding the growth from its new greenfield hospitals in Polokwane and Pinehaven, patient days grew by 2.4%. Pleasingly, demand in Polokwane and Pinehaven is in line with expectations, yielding occupancy levels above 50% by the end of the 2016 financial year.

  • Netcare’s share price dropped 6.23% to R25.60 following the release of the group’s pre-close trade update for the period from October 1, 2016 to the end of March 2017. This translated to negative purchase sentiments from the online live charts, raising sentiments that putting up HFPL’s stock for sale could be a better move. The share price had been falling for three weeks in a row, declining 19.5% in March. The trading update showed revenue for the group rose 7.7% for the first half of the 2017 financial year despite a decrease in patient days, driving higher dividend hopes. With 114 hospitals and more than 13,300 beds, Netcare operates the largest private hospital networks in SA and the UK. Its market cap, today is just more than R38.57bn.

Health Partners For Life Limited Major Shareholders

  • Sector

    Healthcare

  • Industry

    Healthcare Equipment and Services

How to buy Health Partners For Life Limited Group Shares

  • Health Partners For Life Limited : How to buy Health Partners For Life Limited Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Health Partners For Life Limited shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Health Partners For Life Limited and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Health Partners For Life Limited Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Health Partners For Life Limited.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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<a href="https://www.sashares.co.za/health-partners-for-life">Credits: SA Shares™</a>
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