Strategic Report: Business Model

PURPOSE DRIVEN

Our business model is focused on our core purpose:

TO ENHANCE THE QUALITY OF LIFE OF PATIENTS

by providing acute care, specialist-orientated, multi-disciplinary healthcare services.

OUR VISION

TO BE preferred locally and RESPECTED INTERNATIONALLY
We will be preferred locally for:
  • delivering excellent patient care;
  • ensuring aligned relationships with doctor communities;
  • being an employer of choice, appointing and retaining competent staff;
  • building constructive relationships with all stakeholders; and
  • being a valued member of the community.
we will be respected internationally for:
  • delivering measurable quality clinical outcomes;
  • continuing to grow as a successful international healthcare group;
  • enforcing good corporate governance; and
  • acting as a responsible corporate citizen.
Our relentless focus on patient needs will create long-term shareholder value and establish Mediclinic International as a leader in the global healthcare industry.

OUR ASSETS AND RESOURCES

Strong financial position

Mediclinic has a strong financial profile, underpinned by an extensive property portfolio. The Group has good access to capital, a disciplined capital allocation approach and invests for growth.

See the Financial Review for more information.


Facilities and technology

We provide high-quality healthcare facilities and technology, with continuous investments in new technology and to expand and maintain existing facilities.

See the Financial Review and the Chief Executive Officer’s Review for more information.


Engaged employees

The Group employs over 31 500 employees across its three divisions. We value our employees by following fair labour practices and offering competitive remuneration, training and development opportunities. The Group overall employee engagement grand mean score increased from 3.81 in the previous year to 3.88 in November 2017.

During the year, £1 293m (2017: £1 231m) was paid to employees as remuneration and other benefits. Continuous investment in the training and development of staff creates a highly trained workforce and talent pipeline.

See the Sustainable Development Highlights for more information.


Operational expertise

Mediclinic has an experienced Board and management team. The continued growth of Mediclinic is testament to their ability to execute the Group’s strategy. The expertise of the Group’s clinical staff is a critical element of its business, allowing it to provide quality healthcare services. Deep operational expertise delivers a seamless patient experience, underpinned by high-quality nursing care.

See the Chief Executive Officer’s Review and Clinical Services Overview for more information.


Sound relationships

Mediclinic has excellent relationships with key stakeholders, regularly engaging with employees, funders, patients, supporting doctors, suppliers, governments and communities. It has a proven commitment to ensure a high standard of ethics, social responsibility, accountability, cooperation and transparency.

See the Corporate Governance Statement and the Sustainable Development Report for more information.


Responsible environmental management

The Group is committed to efficient energy use in all its hospitals and continuously strives to reduce its water consumption and carbon emissions, with an increasing number of its hospitals certified to the ISO 14001 standard.

See the Sustainable Development Highlights for more information.

OUR STRATEGY TO DELIVER VALUE

Strategic objectives

Putting Patients First

Patients are at the core of everything we do at Mediclinic. We strive to deliver superior clinical performance through efficient structures, processes, and outcomes, in accordance with the Group clinical performance model.

Improving efficiencies

We strive to use our combined international capacity and effective collaboration to achieve Group efficiencies through the principles of simplification, standardisation and centralisation.

Continuing to grow

Mediclinic has a track record of investing in carefully selected capital projects that deliver satisfactory returns and has demonstrated the ability to integrate and extract value from acquisitions and expansions of existing facilities.

Adapt to changing business environment

We strive to minimise risk to the business by positioning the Group to effectively respond to changes in the business environment.

Key strategic enablers

See Our Strategy, Progress and Aims for more information.

Risk management

The Group has established an integrated and effective risk management framework where important and emerging risks are identified, assessed and managed, which are aligned to and supports the Group strategy.

See the Risk Management, Principal Risks and Uncertainties for more information.

WHAT WE DELIVER

Quality healthcare services

During the year, the clinical performance was satisfactory across all operating divisions, and several patient safety and clinical effectiveness indicators showed improvement. In addition, many initiatives in support of clinical performance and quality improvement were launched and completed during the year.

See the Clinical Services Overview for more information.

Shareholder value

We deliver value to shareholders through growth in capitalisation and shareholders returns, with the balance of funds retained for investment in profitable growth opportunities.

A focus on disciplined cost management and improving efficiencies has delivered a strong track record of cash flow generation, with a total dividend to shareholders of 7.90 pence per share.

See the Financial Review for more information.

MEDICLINIC’S BUSINESS MODEL HAS RESULTED IN THE DELIVERY OF QUALITY HEALTHCARE SERVICES AND GENERALLY A BUSINESS THAT SUSTAINS GROWTH AND CREATES VALUE FOR ITS STAKEHOLDERS.