DGAP-News: RHÖN-KLINIKUM AG (english)
RHÖN-KLINIKUM AG: Today's Analyst Conference in Frankfurt/MainRHÖN-KLINIKUM AG / Quarter Results/Results Forecast
09.11.2006
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RHÖN-KLINIKUM AG, Bad Neustadt/Saale
Analyst conference in Frankfurt/Main
Results for the first nine months of 2006 (already published) explained
Market position and future strategy
1. Acquisition of university hospitals Gießen/Marburg
2. Health reform + Group's 10-point programme
3. Goal: further market penetration
Forecast for 2006 results and trend result for 2007
Bad Neustadt / Saale, 9 November 2006 ----- At Rhön-Klinikum AG's analyst
conference held today in Frankfurt/Main, the Group's results for the first
nine months of 2006 (already published on 26 October 2006) were once again
briefly explained and the parameters underpinning the expected results
discussed. For the first nine months of 2006 the Group reports revenues of
EUR 1.4 billion (9M 2005: EUR 1.0 billion / + 36.7%). The jump in revenues in
the first nine months of the current financial year stems primarily (to the
tune of EUR 280.9 million) from the consolidation of Universitätsklinikum
Gießen/Marburg from 1 February 2006. Consolidated third-quarter revenues
reached EUR 489.8 million, up 37.4% from the same period in the previous year
(Q3 2005: EUR 356.4 million). In the first nine months of 2006 (before the
earnings share of minority owners), the Group's net consolidated profit
reached EUR 70.1 million (9M 2005: EUR 67.1 million / + 4.5%). That translates
into an EpS in Q3 of EUR 0.45 (Q3 2005: EUR 0.42); with reference to the first
nine months EpS increased to EUR 1.29 (9M 2005: EUR 1.23).
Market position and future strategy
Re. (1) Acquisition of university hospitals Gießen/Marburg
'The privatisation of the first university hospital is path breaking for
the whole of Germany and hitherto unique on the German hospital and
university landscape, serving as a beacon for the future', explained
Wolfgang Pföhler, chairman of the Board of Management of the listed
hospital group headquartered in the Rhön. 'With the acquisition of
Universitätsklinikum Gießen/Marburg, our healthcare delivery chain is
complete. Our offering now ranges from outpatient and inpatient basic and
standard care facilities to cutting-edge medicine at our maximum care
facilities, and thus spans all major fields of acute medicine'.
He emphasised the good co-operation between the areas of research/teaching
and healthcare, and in this connection congratulated the medical faculty of
the University of Gießen on its award for excellence in promoting science
in Germany received from the German Government and the German Federal
States.
The restructuring and privatisation of Universitätsklinikum Gießen/Marburg
are quietly moving ahead as planned. 'Both owners of the university
hospital are pulling together as one team', Pföhler said. 'The steadily
improving earnings underscores our assessment that we will make
Gießen/Marburg a success. Whereas the loss in the first abridged quarter of
2006 - Gießen/Marburg has belonged to us only from 1 February - totalled EUR
2.6 million and in the second quarter EUR 3.0 million, this was trimmed in
the third quarter to EUR 0.9 million. This loss will once again be cut by
about half in the fourth quarter. We will pursue our past strategy
unrelenting and therefore assume that Gießen Marburg can turn a profit in
2007'.
Pföhler is convinced that more and more federal states will come to the
realisation that the privatisation of university hospitals can successfully
be used to secure maximum-care medicine at universities. 'Given the current
woes of Germany's public finances we are certain that further university
hospitals will be offered on the market within the next two years'.
Re. (2): Health reform and Group's 10-point programme
The Group's management expects that the planned cuts, i.e. the general
lowering of hospital budgets and prolonging of start-up financing for
integrated care, will give a further impetus to the privatisation process.
Further drivers are the VAT hike planned for 1 January 2007 and rising
doctors' salaries. The planned lowering of compensation for shortfall
volumes will also shake up the market. The chairman of the Board stated:
'Of course we will not be unaffected by the impact of the reform, but we
have done our homework, are ready, and we can and will act.'
The burdens can be compensated by numerous countermeasures that we have
already initiated', explained the chairman of the Board of Management. The
most important measures of the ten-point programme include the following:
For every Group hospital a plan of action has been prepared to steadily
reduce expenditures and raise earnings.
To offset the VAT increase we will proceed with an intelligent insourcing
of services hitherto obtained from external providers, or certain purchases
will be moved forward. By establishing tax consolidated groups, high VAT
payments will be avoided. Moreover, the increase in VAT will be largely
offset by the Group's already existing bargaining power in purchasing.
With an even greater standardisation of input products - this relates to
the use of consumables and implants and the streamlining of our offering -
procurement costs will be cut further.
We will step up our efforts to expand our material cost benchmarking and
competition among our Group subsidiaries, thus further reducing
expenditures.
The internal reorganisation of our facilities will also be pushed ahead
with the continued consistent use of staffing benchmarks.
Moreover, leaner supply and discharge structures at our Group hospitals
will also help cut the costs of materials management, further optimising
hospital logistics.
We will counter the planned cuts in hospital budgets by raising case
numbers, expanding offerings and further developing specialisations at
selected facilities. This internal growth will result in even better
occupancy rates, which in turn will raise earnings.
'We have not only identified the problems, but have already begun to solve
them', said Wolfgang Pföhler. All measures will move within a target
corridor in their effects, thus making offsetting adjustments between the
individual measures a part of the concept and its ongoing fine-tuning.
Re. (3): Goal - further market penetration
According to the Group's CEO, the decision taken by the German government
on healthcare reform heralds a sea change: it is trying to put a lid on
demand which is to be spread over waiting lists. Here, too, the Group's
management is ready with the right concepts. 'I would just name our concept
of the medical care centres (MVZs) attached to our Group hospitals, our
comprehensive product portfolio and our willingness to offer the health
insurance funds a generalised, full-coverage service. As you can see, the
healthcare reform measures will not put us off our long-term strategy of
sustained growth in earnings.'
In addition to the ten-point programme to improve the operative processes
in the Group's individual hospitals and the Group as a whole, the Group's
management is also working on strategic concepts. RHÖN-KLINIKUM AG is also
striving to lead developments beyond the day-to-day business of a hospital.
The latest considerations were briefly summarised and outlined under the
catchphrase 'quality through standardisation and service volumes'.
This subject is subdivided into the following four points:
Technology advances in a hospital's clinical processes
Transfer of non-physician tasks to other professional groups
New professional model for doctors: greater efforts towards division of
labour and specialisation
Multi-level university hospital as a working model for generalised
provision of healthcare
The Group's management are convinced that with the 10-point programme the
company will quickly be able to take on and meet the challenges of the
health reform. With the concepts as outlined the goal is to further raise
the efficiency and quality of healthcare delivery. 'This brings us one step
closer to achieving our corporate goal of ensuring affordable, generalised
healthcare for everyone to high quality standards', Pföhler explained. 'We
thus clearly continue our earnings-oriented growth strategy despite the
burdens mentioned and will not disappoint our patients or our investors.'.
To encourage debate on the subject 'Das Neue Ärztliche Berufsbild - Zur
Zukunft des Arztberufes im Krankenhaus' (New professional model for doctors
- on the future of the doctor's profession in the hospital) RHÖN-KLINIKUM
AG will hold a symposium at the Sheraton Frankfurt Hotel & Towers,
Frankfurt Airport Terminal 1, on Friday, 24 November 2006, from 12:30 to
about 5:00 p.m. The event is addressed to representatives of associations,
politicians, the media, hospital directors as well as the Advisory Board of
RHÖN-KLINIKUM AG. The subject will be debated - probably controversially -
by reputed guest speakers and dedicated panellists.
Forecast for 2006 results and trend result for 2007
'For financial year 2006 we continue to expect revenue of EUR 1.9 billion, a
net consolidated profit of EUR 93.0 million and earnings per share of EUR
1.72', said Wolfgang Pföhler. In this connection Dietmar Pawlik, the
company's CFO, referred to the special burdens that the hospital group had
to deal with this year and next, from the doctors' strike - with the
resulting increases in personnel expenditure - to the VAT increase as well
as budget cuts under the health reform. 'All of these are new burdens which
RHÖN-KLINIKUM Group did not face in the previous years and which will be
offset by the restructuring of the newly acquired hospitals and the
10-point programme', Pawlik said.
'Without taking into account acquisitions, we maintain our target for
revenues of just under EUR 2 billion and a net consolidated profit of EUR 100
million for financial year 2007. We thus clearly continue our
future-oriented growth strategy despite the described burdens', explained
Wolfgang Pföhler in closing.
Brigitte Sallwey
Sallwey & Partner
Telemannstr. 18
Tel.: (+49)069 97203628
e-mail: sallwey@rhoen-klinikum-ag.com
DGAP 09.11.2006
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Language: English
Issuer: RHÖN-KLINIKUM AG
Salzburger Leite 1
97616 Bad Neustadt/ Saale Deutschland
Phone: +49 (0)9771 - 65-0
Fax: +49 (0)9771 - 97 467
E-mail: fire.ir@rhoen-klinikum-ag.com
WWW: www.rhoen-klinikum-ag.com
ISIN: DE0007042301
WKN: 704230
Indices: MDAX
Listed: Amtlicher Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, Stuttgart
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