Ramsay Health Care share price lower on COVID-19 update

The Ramsay Health Care Limited (ASX:RHC) share price is trading lower after withdrawing its earnings guidance because of COVID-19…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Ramsay Health Care Limited (ASX: RHC) share price is trading lower on Wednesday after the release of an announcement.

The private hospital operator's shares are currently down 3.5% to $57.60.

a woman

What did Ramsay announce?

Ramsay has followed the lead of many other companies and announced that it is withdrawing its earnings guidance for FY 2020.

This follows the ongoing high level of uncertainty surrounding the spread, duration, and impact of the coronavirus, and as Ramsay's hospitals around the globe move to assist governments with managing the virus.

How has Ramsay been impacted?

Ramsay's managing director, Craig McNally, explained: "While we face the unknown in terms of the extent of the impact of COVID-19, it is vital that all health providers work together during this time to deliver the best care and treatment to patients within our communities."

"The rapid spread of COVID-19 in Europe has resulted in decisions to defer surgery in some regions as governments seek extraordinary support from private operators such as Ramsay to deal with capacity requirements. Specific details of the extent of this support including volume, casemix and reimbursement are still being finalised," he added.

In France, the company notes that the government has cancelled all non-urgent surgery and Ramsay's hospitals are providing much needed capacity and services.

Whereas in the United Kingdom, elective surgeries are continuing, but the company is in discussions with the NHS to provide services and capacity to help deal with the impact of the coronavirus.

In Australia, the company advised that it is still too early to determine the full impact.

In relation to its Australian hospitals, Mr McNally explained: "As the number of COVID-19 cases continues to escalate, we will see an impact on private volumes for the short term. However, in some cases, we are seeing decisions to fast-track elective surgery in order to minimise any future potential disruption."

The company advised that its Australian hospitals are willing to assist the public health sector ease the surgical burden on the public health system. It will undertake urgent and elective surgery, as well as provide capacity to cater for COVID-19 patients if required.

"Ramsay and our facilities right across the world are ready and willing to assist at this time of crisis. Our hospitals are well-prepared to manage the impacts of COVID-19. We have strict infection control and prevention protocols in place to protect our staff and healthcare workers. These measures are enabling us to continue to provide world-class care and treatment to patients," McNally concluded.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ASX Share Market News

Three rock climbers hang precariously off a steep cliff face, each connected to the other with the higher person holding on and the two below them connected by their arms and rope but not making contact with the cliff face.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rather nasty Thursday session for investors.

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Broker Notes

Buy, hold, sell: Whitehaven, Endeavour, Neuren Pharmaceuticals shares

As earnings season continues, brokers have updated their ratings and 12-month price targets.

Read more »

Disappointed man with his hand to his forehead, looking at a falling share price on his laptop.
ASX Share Market News

Why is the ASX 200 falling to a 4-day low today?

What’s behind the market’s latest pullback?

Read more »

Woman smiles at camera at she buys greens from the supermarket.
Broker Notes

Do leading brokers rate Woolworths shares as a buy following its results?

Two leading brokers have given their take on the supermarket giant.

Read more »

Upset business woman in hijab working inside office,.
Broker Notes

7 ASX 200 shares downgraded by brokers this week

Brokers reduced their ratings on PLS Group, Lovisa, and others as earnings season continued.

Read more »

A man in his 30s with a clipped beard sits at his laptop on a desk with one finger to the side of his face and his chin resting on his thumb as he looks concerned while staring at his computer screen.
Broker Notes

Buy, hold, sell: Coles, Paladin Energy, and Woodside shares

Morgans has updated its view on these stocks.

Read more »

Two happy woman on a sofa.
Broker Notes

Buy, hold, sell: Breville, Car Group, Temple & Webster shares

Experts share their views on three ASX stocks post-results as earnings season continues today.

Read more »

A young African mine worker is standing with a smile in front of a large haul dump truck wearing his personal protective wear.
Broker Notes

3 ASX mining shares Bell Potter rates a buy

These miners could be worth a look.

Read more »