9 Aug 2010

Economic downturn hurts private healthcare firm

2:59 pm on 9 August 2010

Wakefield Health says it sees some scope in providing medical care to Americans in the future.

The economic downturn has hurt the private healthcare firm, with fewer self-funded or insured patients as well as a slump in ACC funded treatment and a drop-off in District Health Board (DHB) contracts.

Wakefield's chief executive, Andrew Blair says factors such as the relaxation of rules on DHBs purchasing from private hospitals should help.

He says the company hasn't noticed people seeking cheaper treatment offshore in Asia.

Mr Blair says there is a perception about quality issues which results in patients preferring to be treated in their home countries.

He says the flip side is that New Zealand could offer health care to people from other countries, particularly the USA where healthcare is very expensive, but to date volumes have been very low.

Meanwhile, Wakefield Hospital's attempt to take over Norfolk Investments, which owns 60% of Grace Hospital in Tauranga, has stalled.

Mr Blair says the healthcare group failed to reach agreement over price and process. He says the takeover process has so far cost Wakefield $350,000.

The company will also be affected by the removal of depreciation on buildings from April 2011, which it estimates will increase Wakefield's deferred tax liability by about $6 million.