4. KEY RISKS
RAMSAY HEALTH CARE LIMITED
Risk Potential impact How Ramsay is responding
RELATIONSHIPS WITH DOCTORS
The recommendation of a
• Loss of doctors and associated
patient’s doctor is often the
most significant factor in a
• Inability to provide leading clinical services
patient’s choice of hospital
• Additional costs associated with doctor’s
in many of Ramsay’s regions.
decisions e.g. theatre times, use of supplies
Most doctors operating or
and timing of patient discharge
working at Ramsay’s hospitals
are not employees (other than in
Scandinavia) and therefore have
a choice of where to practice.
Ramsay continually invests in its facilities (e.g.
theatres, equipment, nurses, beds and suites) and
ensures it has strong relationships with its doctors
through regular support and engagement, including
providing education forums and opportunities for
Customer feedback (e.g. Net Promoter Score,
complaints etc.) is closely monitored as this also
impacts on doctor recommendations to patients.
GOVERNMENT POLICY & REGULATION
Ramsay operates in the
healthcare industry which is
subject to extensive laws,
regulations, policies and ethical
standards (which may vary
by jurisdiction). Government
policy may materially impact
the role of Ramsay in
provision of healthcare and/or
the affordability of private
• Policies may effectively reduce the role
of the private sector in a country’s health
system, including the involvement of the
private sector in the provision of healthcare
to public patients
• Economic factors or regulations may impact
the affordability of private health insurance
(particularly in Australia) and result in a
reduction in the level of private health
Each country closely monitors current and proposed
government policy and regulation, including through:
• Maintaining and developing relationships with
Government in all regions in which it operates.
This takes place at all levels of government and at
various levels within the business (e.g. at a national
and local level).
• Membership and/or leadership in various industry
representative bodies to ensure input into
government healthcare policies and initiatives
FUNDERS - HEALTH INSURANCE FUNDS & GOVERNMENT SOURCES
Ramsay relies on funding
provided by private health
insurers and governments in
the provision of its services.
Changes in government or
health insurance funding could
have a material impact on
• Failure to reach satisfactory commercial
terms with major insurers or changes to
government funding arrangements
• Reduction in earnings from health insurance
funding due to a decline in the profitability
of health funds, a decline in health fund
membership or an inability of health funds
to obtain premium increases (because of
government regulation or other restrictions).
Ramsay plays an important role in supporting the
health systems in the regions in which it operates and
works to foster strong working relationships with both
private health insurers and government funders.
Our commitment to clinical quality as well as provision
of cost effective, outcome focused care demonstrates
to third party funders the value in contracting
Ramsay handles and stores
personal information, including
health information, digitally
and in paper form for its
customers and employees.
A cybersecurity incident may
result in damage or interruption
to Ramsay’s information or
operational systems, or those
provided by third party vendors.
• Suboptimal patient experience due to
delays or disruption to service delivery
• Potential consequences for individuals
(including patients and employees) of a
• Increased costs as a result of recovery
strategies and/or financial penalties
• Reputational damage as a consequence of
a cyber breach.
Cybersecurity risk is addressed through a Global
Cybersecurity Framework which includes controls
associated with prevention, detection and recovery.
In addition, the Framework is externally validated,
routinely tested and subject to ongoing review and
COMPETITION, INNOVATION, DEVELOPMENTS & ACQUISITIONS
Ramsay’s growth strategy may
be impacted by industry
disruption, innovation, the
actions of our competitors,
the ability to identify future
acquisitions or generate returns
• Limited growth or inability to
• Limited improvement in service delivery
when compared to competitors
• Difficulty in attracting and
• Inability to fully respond to industry changes
• Redundancy of services and assets
Innovation is a key component of Ramsay’s strategy.
This involves exploring out of hospital opportunities
as well as investing in facilities (new and existing) and
new technologies to ensure that Ramsay is meeting
consumer needs now and in the future.
Prior to undertaking any acquisition or development,
Ramsay undertakes comprehensive due diligence to
identify key risks and ensure appropriate valuation,
uses external advisors and all acquisitions are
considered by the appropriate executive committee
or the Board.
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