Ramsay Health Care : ASX Announcement - Update on Elective Surgery Restrictions in Australia

ASX ANNOUNCEMENT

7th January 2022

UPDATE ON ELECTIVE SURGERY RESTRICTIONS ON AUSTRALIAN PRIVATE HOSPITALS

Ramsay Health Care (Ramsay) (ASX: RHC) notes the announcement by the NSW Ministry of Health today that in response to rising COVID 19 cases in that state, restrictions on non-urgent overnight Category 2 and Category 31 elective surgery are to be introduced on all private hospitals in NSW effective 10 January 2022.

Ramsay also notes changes made by the Victorian Department of Health and Human Services (DHHS) to the surgical restrictions imposed in that state, that were effective immediately, Thursday 6th January. Elective surgery is now restricted to urgent elective surgery2 procedures, including Category 1 admissions in all private hospitals and day procedure centres in metropolitan Melbourne and Geelong and private hospitals (excluding day procedure centres) in regional centres, including Ballarat, Shepparton, Bendigo and the Latrobe Valley.

At the current time, neither the DHHS nor the NSW Ministry of Health have provided a date at which these restrictions will end and Ramsay will be able to return to business as usual.

As detailed in Ramsay's FY21 final results, the impact on FY22 EBIT of surgical restrictions will be material and will depend on the geographical coverage, extent and duration of restrictions. By way of reference, noting that January is the seasonally quietest month of the year in the Australian business, the estimated total EBIT impact in 1QFY22 in Australia of disruption caused by COVID, including restrictions on elective surgery and the increased costs associated with COVID, was $55m3.

Contact:

Kelly Hibbins

Group Head of Investor Relations Ramsay Health Care

[phone]

[phone] [e-mail]

The release of this announcement has been authorised by the Ramsay Health Care Disclosure Committee.

1. Category 2 admission within 90 days desirable for a condition which is not likely to deteriorate quickly or become an emergency. Category 3 admission within 365 days acceptable for a condition which is unlikely to deteriorate quickly and which has little potential to become an emergency
2. Urgent elective surgery is where admission within 30 days is clinically indicated for a condition that has the potential to deteriorate quickly to the point that it might become an emergency. This includes cancer screening and surveillance
3. Refer ASX announcement Ramsay Health Care - FY22 Trading Update released to the ASX on 11th November