Shares in Australia's largest private hospital operator have plunged despite it nearly tripling full-year profit on the previous year.
Ramsay Health Care Limited on Friday reported it made a $888.7 million net profit in 2023/24, up from $298.1 million in the last financial year, with total revenue up by 9 per cent year on year to $16.8 billion.
Ramsay Health says the increase in revenue is from patient activity driven by growth in all regions combined with indexation increases and the benefit of new capacity coming online.
"We have made some progress with private sector payors on tariff indexation, however tariffs from payors remain out of touch with cost inflation," chief executive Craig McNally said.
It comes after data from the Australian Prudential Regulation Authority revealed health fund payments to hospitals surged 8 per cent over the past year, with these payments now at 117 per cent of pre-pandemic levels as more people to turn to private health for rapid access to care.
Ramsay Health says the outlook for 2024/25 is for activity growth in all regions, albeit at a lower late than in the previous financial year with market reacting poorly to the news.
Early on Friday afternoon shares for the private health provider were trending down just over 7 per cent to $41.39 and continue to be down by nearly 20 per cent year to date.
Ramsay Health owns and operates more than 70 hospitals, clinics and surgical centres across metropolitan and regional Australia.
