LENMED AIR 2019.pdf

Increasing competition WHY THIS IS IMPORTANT TO LENMED RISKS AND OPPORTUNITIES Competition between healthcare providers is intensifying as other groups establish hospitals near Lenmed facilities. Increasing competition also increases demand for doctors, which is not being met by South Africa’s educational institutions. Attracting and retaining competent medical professionals is vital to our long-term sustainability. The most constructive response for defending market share is ongoing innovation. Lenmed constantly evaluates how to improve customer services, reduce costs and add in differentiators. Retaining market share requires increasing our competitive strength and value-add to customers. We are presently exploring opportunities to diversify into day, psychiatric and acute care facilities. OUR RESPONSE To protect and grow our market share, we are raising service levels and reviewing all our operations for efficiency, affordability and costs. Lenmed aims to ensure a consistently superior experience for patients and medical professionals. Making healthcare more efficient for patients and providers WHY THIS IS IMPORTANT TO LENMED RISKS AND OPPORTUNITIES Rising healthcare expenses and systemic economic instability require traditional models of care to update in the face of increasing demand and costs. One specific change required is the interface between acute care and alternative care settings in traditional day hospitals or rehabilitation centres. Certain specialities, such as ophthalmology, gastroenterology, chemotherapy and nephrology (especially dialysis), utilise relatively short procedures that do not require prolonged hospital stays. Refocusing on day healthcare centres will not only substantially reduce patient expenses, but also decrease operational costs. Short-stay facilities are less capital- intensive than traditional hospitals and require fewer beds. Day clinics cost significantly less to operate than regular hospitals. Day clinics don’t require operating theatres that are equipped for complex heart or orthopaedic surgeries. Day clinics are affordable, convenient and practical in that procedures are pre-planned and do not require overnight stays. While short-stay clinics will not solve the healthcare industry’s shortage of built infrastructure and medical professionals, these do provide an alternate interface for efficient patient care. OUR RESPONSE Where feasible, Lenmed’s aim is to establish day clinics near our current hospitals. Strategic differentiation WHY THIS IS IMPORTANT TO LENMED The healthcare industry is undergoing rapid change. Today’s patients research their symptoms before visiting healthcare practitioners and expect astute and high-quality service. As competition stiffens, healthcare players must differentiate themselves through service, range of facilities and a compelling brand. RISKS AND OPPORTUNITIES Consumers engage with brands that they can relate to, make them feel important and well taken care of. Healthcare brands are compelled to position themselves in offering superior service and unique propositions. Location is important, and Lenmed will remain true to our roots and the communities we serve by championing quality patient experiences and clinical outcomes in the areas we serve. OUR RESPONSE Lenmed continuously addresses all internal operations and processes to refine the quality levels required to support our brand promise. Our emphasis is on quality patient experience rather than increasing bed occupancy rates. OUR MATERIAL MATTERS LENMED ANNUAL INTEGRATED REPORT 2019 31