LIFE HEALTHCARE (LHC) – It is about revenue per service

Life Healthcare delivered satisfactory results, aided by robust revenue generated per Hospitals and complementary services paid patient day and revenue earned per UK’s diagnostic imaging scan.

Hospitals and complementary services paid patient days (PPDs) declined, even as acute hospitals’ occupancies improved marginally. We find that independent hospitals’ competitive pricing for preferred networks, have impacted patient volumes to the listed hospital groups. However, we believe the hospital groups are realising increases in revenue per PPDs above CPI, with LHC achieving at least 2% above CPI. The healthcare funders’ efforts to manage the cost of healthcare might have reduced admissions, but these efforts have not reduced the cost per admission. Covid-acuity is improving hospital case mix, enabling the hospital groups to generate high increases in revenue per PPDs.