latest health care news

16.01.19

Private giant Spire cuts expected earnings again amid NHS funding squeeze

Private hospital group Spire has cut its expected core earnings forecast for the second time in a year, driven by increasing waiting times and funding pressures across the NHS and prompting many investors to sell their shares in the FTSE-listed company.

One of Britain’s biggest private hospital companies, Spire said its earnings before tax, interest, and other charges will be in the range of £120m, far lower compared to the £150m generated the year before.

The earnings forecast is below the previous forecast of £125m in September, and extends a decline that has wiped out two-thirds of the group’s stock market value in the past six months.

The company has previously hit out at NHS funding squeezes as the main cause to its decline in profits when in September Spire revealed a 20% profit hit.

Chief executive Justin Ash said an “unprecedented depth and speed of decline” in NHS admissions had led to the company’s disappointing results and was critical of the NHS for sending less patients than before for elective surgery.

Spire operates 39 hospitals and 11 clinics in the UK and employs around 8,400 full-time staff, providing care for self-pay patients, private medical insurance, and referrals from the NHS.

Since Spire was created in 2007 by a private equity firm, investors have endured a turbulent time as the private company struggled with a £27.6m compensation pay-out to settle claims from 750 patients regarding botched surgery as well as issues at three new hospitals.

Spire’s second profit warning has seen its shares fall 13% over the past day after the £5m hit to its annual estimate— but the company reiterated it had increased the number of its hospitals rated outstanding or good by the CQC.

Image credit - PeopleImages

Comments

There are no comments. Why not be the first?

Add your comment

 

national health executive tv

more videos >

featured articles

View all News

last word

Haseeb Ahmad: ‘We all have a role to play in getting innovations quicker’

Haseeb Ahmad: ‘We all have a role to play in getting innovations quicker’

Haseeb Ahmad, president of the Association of the British Pharmaceutical Industry (ABPI), sits down with National Health Executive as part of our Last Word Q&A series. Would you talk us throu more > more last word articles >

health service focus

View all News

comment

NHS England dementia director prescribes rugby for mental health and dementia patients

23/09/2019NHS England dementia director prescribes rugby for mental health and dementia patients

Reason to celebrate as NHS says watching rugby can be good for your mental ... more >
Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >

interviews

Matt Hancock says GP recruitment is on the rise to support ‘bedrock of the NHS’

24/10/2019Matt Hancock says GP recruitment is on the rise to support ‘bedrock of the NHS’

Today, speaking at the Royal College of General Practitioners (RCGP) annual... more >

the scalpel's daily blog

Why social prescribing is the future of healthcare

01/04/2020Why social prescribing is the future of healthcare

Jennifer Jones-Rigby, COO at Health Exchange, a social enterprise seeking to shape the design and development of health and wellbeing services in a way that wil... more >
read more blog posts from 'the scalpel' >

editor's comment

25/09/2017A hotbed of innovation

This edition of NHE comes hot on the heels of this year’s NHS Expo which, once again, proved to be a huge success at Manchester Central. A number of announcements were made during the event, with the health secretary naming the second wave of NHS digital pioneers, or ‘fast followers’, which follow the initial global digital exemplars who were revealed at the same show 12 months earlier.  Jeremy Hunt also stated that by the end of 2018 – the 70th birthday... read more >