Netcare to spend R2bn on expansion

25 November 2014

Healthcare group Netcare will spend R2bn to expand facilities during its 2015 financial year in expectation of strong demand for hospital services, as SA’s population ages and public facilities fail to offer good services.

Netcare CEO Richard Friedland said the group would add 510 new beds in new projects, expansion of existing ones, and a small acquisition in the Western Cape.

Two new facilities are to open next year — a 100-bed hospital in Pinehaven, west of Johannesburg, and a 170-bed hospital in Polokwane, he said at Netcare’s results for the year to September.

The new Netcare Christiaan Barnard Memorial Hospital in Cape Town is expected to be opened in 2016.

Dr Friedland said the planned capital expansion was a vote of confidence in SA’s economy considering the group had already invested R1.2bn in capital projects in its 2014 financial year.

The group has also secured a R500m loan from Nedbank and the French Development Agency to convert 35 of its 50 hospitals to solar power. It expects the conversion to solar to deliver R1bn in saved costs over 10 years.

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