Ramsay Valuation Heavily Weighted to Australia, Other Geographies Are a Sideshow

Ramsay’s successful and cash generative Australian business enabled its global acquisition strategy but the market fundamentals in the chosen geographies are far less attractive than at home. The key differentiator is the proportion of private health insurance, or PHI, coverage of the population. According to recent APRA data, 45% of the Australian population have PHI and over 80% of private hospital revenue flows from private insurance versus 20% of revenue in the U.K. and France and 10% in the Nordics. This has a direct impact on profits earned as providers are price-takers in public outsourced work.