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Strategic Report:

Business
model

PURPOSE Mediclinic’s purpose is to ENHANCE THE QUALITY OF LIFE.

VISION

TO BE PREFERRED LOCALLY AND RESPECTED INTERNATIONALLY

We will be preferred locally for:

  • delivering excellent patient care;
  • ensuring aligned relationships with doctor communities;
  • being an employer of choice, appointing and retaining competent staff;
  • building constructive relationships with all stakeholders; and
  • being a valued member of the community.

We will be respected internationally for:

  • delivering measurable quality clinical outcomes;
  • continuing to grow as a successful international healthcare group;
  • enforcing good corporate governance; and
  • acting as a responsible corporate citizen.

Our relentless focus on patient needs will create long-term shareholder value and establish Mediclinic as a leader in the global healthcare industry.

OUR ASSETS AND RESOURCES

Strong financial position

Mediclinic has a strong financial profile, underpinned by an extensive property portfolio. The Group has good access to capital, a disciplined capital allocation approach and invests for growth.

See the Financial Review for more information.

Facilities and technology

The Group provides high-quality healthcare facilities and continuously invests in the expansion and maintenance of these facilities, as well as in new technology.

See the Divisional Reviews for more information.

Engaged employees

The Group employs more than 32 000 employees. Mediclinic believes that client experience depends highly on interaction with its employees; those working with and for the Group are highly valued. Fair labour practices are followed and competitive remuneration, training and development opportunities are offered. Continuous investment in the training and development of employees creates a highly trained, client-oriented workforce and talent pipeline.

The Group’s overall employee engagement grand mean score, as measured by the Gallup® Employee Engagement Profile survey, increased meaningfully in all divisions during the 2018 survey. The improvement in the central themes indicated a positive return on the resources invested in supporting initiatives and this approach will be continued based on the most recent results. The participation rate also increased from 77% in the previous financial year to 82% in this reporting period.

See the Sustainable development overview for more information.

Operational expertise

Mediclinic has an experienced Board and management team. The Group’s clinical expertise is a critical element of its business, enabling it to provide quality healthcare services. Deep operational expertise delivers a seamless patient experience, underpinned by high-quality nursing care.

See the Clinical services overview for more information.

Sound relationships

Mediclinic is committed to ensuring a high standard of ethics, social responsibility, accountability, cooperation and transparency. The Group maintains excellent relationships with key stakeholders through regular engagement with employees, funders, patients, supporting medical practitioners, suppliers, government and communities.

Any initiative to improve the quality of clinical care needs the support and engagement of the treating medical practitioners. For this reason, the Group openly acknowledges its supporting medical practitioners as a key stakeholder and is actively involved with various programmes to engage with them.

See the Corporate Governance Statement and the Sustainable Development Report (available on the Company’s website) for more information.

Responsible environmental management

The Group is committed to efficient energy use in all its facilities and continuously strives to reduce water consumption and carbon emissions, with an increasing number of its facilities certified to the ISO 14001 standard.

See the Sustainable development overview for more information.

OUR STRATEGY TO DELIVER VALUE

2019 STRATEGIC OBJECTIVES

Putting Patients First

Patients are at the core of everything Mediclinic does. The Group strives to deliver superior clinical performance through efficient structures, processes and outcomes, in accordance with its clinical performance framework.

Improving efficiencies

By using the Group’s combined international capacity and effective collaboration, it is able to achieve efficiencies through the principles of simplification, standardisation and centralisation.

Continuing to grow

Mediclinic has a record of investing in carefully selected capital projects and has demonstrated the ability to integrate and extract value from acquisitions and expansions of existing facilities.

Adapting to a changing business environment

By positioning itself to effectively respond to changes in the business environment, the Group is able to minimise its risk exposure.

KEY STRATEGY ENABLERS

  • Invest in employees
  • Invest in ICT
  • Invest in analytics

See Our strategy, goals and progress for more information.

RISK MANAGEMENT

The Group has established an integrated and effective risk management framework wherein important and emerging risks are identified, assessed and managed. The framework is aligned to and supports the Group’s strategy.

See Risk management, principal risks and uncertainties for more information.

WHAT WE DELIVER

Mediclinic’s business model is aimed at delivering quality healthcare services, in particular, and at sustaining growth and creating value for its stakeholders, in general.

Quality healthcare services

During the year, the clinical performance across the Group made good progress and several patient safety and clinical effectiveness indicators showed improvement. In addition, many initiatives in support of clinical performance and quality improvement were launched and completed.

See the Clinical services overview for more information.

Shareholder value

Mediclinic seeks to deliver sustainable long-term shareholder value through return on invested capital. While recent profitability has challenged the achievement of appropriate returns, the invested capital of the Group remains underpinned by a philosophy of property ownership.

The Company’s diligent approach to financial management across the Group presents Mediclinic with medium-term sustainability and flexibility to invest in incremental growth propositions across the continuum of care; manage the level of debt to covenants across all divisions; and improve shareholders returns. 

See the Financial Review for more information.

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