In the six months to March 2007, Netcare hospitals experienced 8% growth in admissions, up from 3%-5% in previous years.
The bigger-than-average increase is related to shifts in demographics, disposable income, disease patterns, and government intervention in the medical aid sector.
"One of the biggest factors contributing to the growth in hospital utilisation is the ageing population," says Ryan Noach, Netcare's chief operating officer: hospitals, emergency and group services.
WHAT IT MEANS
 Netcare's business booms as it services a growing demand for private healthcare
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"Since 2000, we have monitored our patients' average length of stay, and there is a direct correlation with age - older patients stay in hospital longer."
But patients are also choosing private health facilities, and paying for it.
For the third year running, the group has recorded growth of more than 6% in maternity cases.
A changing medical schemes environment is another factor in Netcare's growth. The number of medically covered lives recently topped 7,1m people, partially thanks to initiatives like the Government Employees Medical Scheme (Gems).
However, there are another 7m people in SA who are formally employed, but with no medical scheme cover.
"We'd like to believe that, in partnership with medical schemes, we will find ways to make membership more affordable. In doing so, we may be able to increase the amount of private healthcare patients 50%," says Netcare CE Richard Friedland.
The growing incidence in lifestyle diseases is also contributing to the growth of SA's private health-care market.
"South Africans are adapting to a developed-world lifestyle, manifested through the so-called chronic diseases of excess," says Friedland.
This demand is good for business. Netcare increased revenue for its SA operations 14% during the six months to end-March. The hospital and trauma division's revenue increased 12% to R3,5bn. And its emergency medical services division, Netcare 911, attended to 22% more patients than in the previous comparative period.
Netcare acquired primary health-care service provider Prime Cure last year. The group added 2,9% growth to Netcare's revenue, and it has experienced 10,3% growth in visits to general practitioners and dentists.
"We have invested a large amount of money in strengthening the primary care network and, between Prime Cure and Medicross, we now have 100 primary care facilities and 41 retail pharmacies nationally," says Victor Litlhakanyane, Netcare's chief operating officer: primary care, partnerships and diagnostics.
"Revenue growth in the primary care market is at a lower margin than at hospital and trauma level, as the focus is more volume driven," he says. "It is a market in which we plan to expand further, especially as it is a viable option for medical schemes wanting to offer lower-cost options to members."
