31/10/2014 - 06:04

SJOG reports 47% surplus increase

31/10/2014 - 06:04

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SJOG reports 47% surplus increase

Strong demand for healthcare in Western Australia has provided a significant boost to St John of God Health Care’s revenue and resulting surplus.

The healthcare provider marked revenue of $1.16 billion for the 2013-14 financial year, up from $1.07 billion for the previous corresponding period.

Meanwhile, its surplus of funds for the year increased 47 per cent to $76.7 million at the end of June 2014.

Chief executive Michael Stanford attributed the growth to a 6 per cent rise in hospital admissions with the number of day admissions increasing by 8.6 per cent.

As noted in the upcoming print edition of Business News with a special report on WA’s biggest employers, St John of God has also boosted staff numbers to cater to the increase in patients.

Over the 2013-14 financial year the number of caregivers rose 10 per cent to 10,850, according to the provider’s annual report. More than 55 per cent of those staff are based in the organisation's home state.

The acquisition of Mercy Hospital in Mount Lawley in May this year was a contributor to the growth in both revenue and staff.

Dr Stanford said St John of God was focusing on recruiting more staff in preparation for the opening of the Midland Health Campus, which has included an international recruitment campaign.

Construction of the facility is expected to be completed by the end of the current financial year in time for the official opening in November 2015 when more than 1,000 additional staff will join the provider.

St John of God invested $194 million in redevelopments and upgrades over the year - the most it has ever spent on redevelopments in a single year during its 25 year history.

The capital expenditure on the redevelopments and expansions are funded by bank debt, which St John of God increased by 51 per cent to $250 million.

 

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