St John returns to profitability
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St John of God Health Care announced on Friday it had returned to profitability, generating a net operating surplus of $13 million in the year to November 2023, up $24 million from the previous comparable period.
The information was released by the catholic-based health care provider, which has 37 facilities across Western Australia, in tandem with its 2022-23 annual report.
St John's transformation of fortunes has come on the back of the company completing a significant organisational restructure following the height of the COVID-19 pandemic, which resulted in a $116 million deficit for the 2022/2023 financial year.
Nationally, St John's revenue was up 8 per cent in the year to November 2023, building on more than $2 billion generated during the 2022-23 financial year. Its WA-based private revenues were also up 11 per cent.
The organisational review last year included tweaking operational procedures and launching a major recruiting drive, which netted 1650 new caregivers, comprised of doctors, midwives and nurses.
St John Group chief executive officer Bryan Pyne said it also resulted in 176 full-time employees, predominantly administration-based, losing their jobs.
The company said it would invest a further $242 million in capital expenditure during the first six months of 2024, up from $187 million during the previous comparable period, primarily due to its new 120-bed Midland Private Hospital, which had its planned funding approved late last year.
Construction at the Midland facility will begin later this year and is expected to be completed by the middle of 2026.
Mr Pyne said he was keen for the company's recent momentum to continue.
"We are pleased with the results, but there is still more work to do," he said.
"The health care sector is in a very different position from what it was before COVID-19. Significant increases in operating costs, interest rates, cost of living pressures impacting private health insurance and changing demand for services, have all impacted prvate hospital groups."