Private hospital group Life Healthcare to invest R2.5bn in new facilities

Life Healthcare has reported a 'resilient' performance for the year to end-September 2025.

The JSE-listed private hospital group runs more than 60 healthcare facilities across South Africa, and one in Botswana.

Revenue growth from continuing operations was up 6% to R25.1 billion compared to the prior year.

Cash generated from operations increased by 23.8% to R4.6 billion.

The Group reported growth in paid patient days (PPDs) of 1.1% resulting in occupancy of 69.7%.

It also concluded the disposal of Life Molecular Imaging (LMI) for up to $755 million, of which $355 million was received upfront. A special dividend of R2.35 per share (R3.4 billion) was paid on 22 September from these proceeds.

RELATED: Life Healthcare to sell its Life Molecular Imaging business for up to R14 Billion

Life Healthcare declared a final cash dividend of 35 cents per share from income reserves, an increase of 12.9%. It said total distributions for the year, including special dividends, amount to R4.3 billion.

The group is focusing on expanding its facilities and attracting more specialist doctors, says CEO Peter Wharton-Hood.

For the 12 months to 30 September 2026, the additions will include adding 89 acute hospital beds, 40 acute rehabilitation beds and 20 renal stations to its facilities.

The new 140-bed Life Paarl Valley Hospital is already under construction and expected to open in the second half of 2027.

"Making further investments in infrastructure, recruiting doctors, that's how you drive improvements in volume - it's about having more facilities and more specialist doctors with admission privileges to your hospitals."

Wharton-Hood notes that this new build is one of the biggest commitments the group has made in the last decade.

"There will be 140 beds initially, but we're building the underlying infrastructure to cater hopefully one day for 250 beds, which is a really big hospital... It's about where the opportunities are that we're specifically following."

Scroll up to the audio player to listen to the interview with the Life Healthcare CEO