Life Healthcare Group Holdings (LHC) CMD 2025 presentation summary

Strategic vision and market context

• Aims to be the preferred healthcare provider and employer, focusing on high-quality, cost-effective care and sustainability.

• Faces a stagnant insured population, rising disease burden, and increased competition in South Africa.

• Ageing insured population and doubling of chronic disease prevalence are driving demand for acute and complementary services.

• Acute care remains the core revenue driver, with complementary services and healthcare services expanding.

Growth strategy and expansion plans

• Plans greenfield and brownfield expansions, including a new 140-bed hospital in Paarl and upgrades across KZN, North West, and Free State, targeting >16–20% IRR.

• Acquired 41 new renal units (including 5 in Namibia) via Fresenius Medical Care, doubling renal revenues and expanding dialysis capacity.

• Investing in diagnostic imaging and nuclear medicine, with new PET-CT and SPECT-CT facilities and two cyclotrons to address underutilisation and meet rising cancer incidence.

• Oncology network expansion includes new radiotherapy units and comprehensive care models to meet >60% forecasted rise in cancer cases by 2040.

• By 2029, targets include 8,496–8,700 acute beds, 1,065–1,200 renal stations, 8–10 oncology units, and 12–18 imaging units.

Driving utilisation and value-based care

• Focuses on maximising facility utilisation through GP and A&E channels, doctor recruitment, and funder partnerships.

• Investing R500m over 8 years to train 75 specialists and 40 sub-specialists, aiming for net recruitment of ~120 doctors per year.

• Value-based care (VBC) strategy integrates funder relations, analytics, and technology to lower costs and improve outcomes, with first-mover advantage in value contracting.

• Renal Integrated Care Product (ICP) scaled to 30 sites, delivering 97% dialysis compliance, 17% reduction in admissions, and 10% CAGR in dialysis revenues.

• Plans to launch additional ICPs in maternity, oncology, and cardiology, and to become the designated service provider for chronic kidney disease by 2026.