HEALTHCARE: Life Eyes Cape Market
Recent Western Cape Business News
PRIVATE hospitals conglomerate Life Health-care Group, which listed on the JSE recently, looks keen to expand its presence in the Western Cape.
Shortly before listing Life announced the acquisition of the Bayview Private Hospital in Mossel Bay.
While no purchase price was disclosed, the acquisition looks fairly sizeable. Bayview holds 102 beds, five operating theatres, a cardiac catheterization laboratory and an accident and emergency unit.
Life MD Michael Fleming says the Bayview acquisition affords the company an opportunity to “broaden our geographic footprint within South Africa and particularly in the Western Cape region.”
Life Healthcare’s primary business is acute private hospital care with 62 acute care facilities and over 8 100 beds.
The company has a good spread of operations, but the bulk of its earning power lies in Gauteng.
It could be argued that, by comparison, Life is under-represented (at least against the dominant Medi-Clinic) in the Western Cape.
In fact, Life’s website shows that it has more hospitals in East London and Port Elizabeth than in Cape Town.
Life’s Western Cape presence is currently concentrated in Cape Town where it competes for market share with other private hospital giants like Medi-Clinic and Netcare.
Life’s best-known hospitals are the Vincent Pallotti near Pinelands as well as the southern suburb operations, Life Claremont and Life Kingsbury. It also owns Life Orthopaedic Hospital in Pinelands and the Life Sports Science Centre Surgical Day Centre.
Life also owns a private hospital in Vredenburg on the Cape West Coast.
The Bayview acquisition is not Life’s first foray outside its traditional Cape market.
The company already owns a private hospital in Knysna.
With the Cape Town market already quite congested, CBN suspects Life may be looking at selected sites in the more affluent towns scattered around the Western Cape.
Could be an interesting exercise…
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