LENMED AIR 2019.pdf

Our business environment For the past five years, Lenmed’s South African operations have expanded and delivered returns in a flat economy that has delivered minimal growth in this time. Trading conditions are expected to worsen in 2019 due to growing political turbulence and increased business risks, with cybercrime a distinct red flag. While many companies will adopt defensive positions to ride out the storm, adventurous and liquid companies will uncover exceptional opportunities. Technological and social disruption is now part of everyday business, with healthcare exposed in aspects such as costs, communications, medicines, techniques and the quality of experience for patients and medical professionals. Globally, there is intense attention and pressure on decreasing cost and increasing the value extracted from hospitals. Technology advances and channelling of patients to less expensive alternate care delivery platforms will increase demand side pressure. While strengthening the core of our business, we must also strategise for challenges beyond the horizon. + Attracting and retaining competent doctors and medical staff remains challenging, particularly as training institutions are failing to meet demand + Greater collaboration within teams of doctors can reduce patient visit frequencies. Private hospitals can play a big role in coordinating patient care ECONOMIC ENVIRONMENT The private healthcare market in sub-Saharan Africa is primarily shaped by five competitive factors: + Suppliers — doctors, staff, trade unions, outsourced services, capital providers, municipalities, pharmaceutical distributors and medical equipment suppliers – Insight: maintaining productive and sustainable relationships with supplier supports + Customers — doctors, their patients, and MAFs – Insight: attracting and retaining competent doctors helps maintain standards and patient satisfaction + Existing hospital competitors — can potentially attract key talent and patients away from Lenmed – Insight: other packages and facilities that enhance the doctor, nursing staff and patient experience + Aspiring or new entrants — disrupt in the industry as causing incumbents to review their market positions – Insight: disruption creates opportunities and visits + Substitute products or services — continually enter the market while patients are self-diagnosing and treating themselves through online sources – Insight: Lenmed must remain current with treatment trends COMPETITIVE LANDSCAPE HEALTHCARE TRENDS TO WATCH 24 CREATING VALUE IN A SUSTAINABLE MANNER THROUGH OUR STRATEGY