Annual integrated report 2011

Our key relationships

We take a strategic approach in engaging with our stakeholders, understanding that a sustainable strategy is an inclusive one.

  Key issues for our stakeholders   Our response to their key issues
Safe environment with low infection rates.
Quality of nursing staff.
Understanding medical procedures and processes.
Access to world-class medical innovation.
The number of patients developing healthcare associated infections in Netcare SA hospitals is 1.94 patients per 1 000 inpatient days. In the UK, the number of patients developing MRSA bacteraemias is 0.37 per 100 000 bed days.
The overall incident rate per 1 000 inpatient days in SA is 9.66.
Founding member and active leader of “Best Care…Always!” SA clinical improvement campaign across public and private sector.
In SA, our most recent patient satisfaction score was 88.4%. In the UK, 99.1% of patients rated the quality of care as good, very good or excellent.
First officially accredited SA Level 1 trauma centres at Netcare Milpark and Netcare Union hospitals.
Launched the Netcare Way in SA to instil behaviours in keeping with our values.
1 528 SA nursing graduates qualified between 2010 and early 2011.
The new Netcare Waterfall City Hospital offers patients a complete range of world-class medical services and the latest in medical technology.
New technology in SA includes the upgrade to a new hybrid catheterisation theatre for cardiac and general vascular procedures.
In the UK, new technology includes a new cryotherapy unit providing alternative treatment for inflammation and pain relief.
In the UK, GHG continues to hold ISO 27001 accreditation (Information Security) which ensures that all patient and other data is managed securely at all times.

Access to quality nursing support.
Access to the best equipment, instruments, medicines and support staff.
Convenient access to multi-disciplinary health services.
Availability of beds and theatre slates.
Netcare trained over 4 400 nurses in SA and the UK.
We invested R1.4 billion in capital expenditure (including intangible assets), R921 million in SA and R487 million in the UK.
178 beds were added at SA hospitals, including 126 beds at the new Netcare Waterfall City Hospital.
SA Hospital division conducted two pilot assessments of the National Department of Health Core Standards in 2011 as a baseline for a full-scale assessment across all divisions. A full review of all hospitals will be completed by January 2012 with a report on outcomes by February 2012.

Refer to the SA and UK clinical governance reports on pages 66 and 94 respectively for details of committees and Netcare’s clinical governance platform.

Opportunities for growth and development.
Recognition of contribution to the Group.
Right to freedom of association and collective bargaining.
In SA, 14 217 training interventions were undertaken (12 months ending 31 March 2011). In the UK, 30 019 training days were delivered.
Netcare SA pays the highest minimum wage in the private hospital sector.
NETrewards, SA’s staff recognition scheme provides an opportunity to recognise staff members who have gone out of their way to provide great service or exemplary care to a patient or a colleague.
In SA and the UK, the annual Night of the Stars awards recognise employees who go above and beyond the call of duty.
Currently, 50.4% of Netcare employees in SA are unionised.

Further detail can be found in the SA and UK reports on Our people on pages 74 and 98 respectively as well as in the Remuneration report on page 124.

Establish good working relations based on transparency and co-operation.
Cost effective healthcare.
Netcare remains firmly committed to containing medical inflation, through training, partnerships, increasing primary care coverage, and well-managed and efficient healthcare delivery.

SA – promotion of access and affordability.
UK – the goal of the NHS is to become a worldclass, patient-centred public healthcare provider.
Safe and correct disposal of medical waste.
In SA, government is focused on promoting access and affordability. We are committed to partnering with government in this strategic drive to maintaining an emphasis on quality, which is integral to maintaining standards and attracting investment.
Netcare’s PPPs provide a platform for broadening quality healthcare services giving communities greatly improved access to medical specialists and private healthcare. The PPPs have the additional objective of transferring skills and embedding management and clinical policies that will ensure the delivery of the quality care. Refer to page 64 for further details on our PPPs.
Netcare is contributing to increased healthcare access through:
      –  Training of nurses; and
      –  Continued investment in health infrastructure.
In the UK, GHG has enhanced opportunities to work with the NHS and has increased the volume of Choose and Book patients.
Netcare SA has undertaken a rigorous process to ensure that our waste disposal contractors meet all legislative requirements.

Enhanced shareholder value.
Corporate governance.
Regulatory uncertainty surrounding healthcare in SA and the UK.
Quality of management and their ability to execute Netcare’s strategy.
Timeous, adequate information.
5.7% compound annual growth in revenue over the last five years.
14.3% compound annual growth in total distributions per share over the last five years.
Netcare is the largest private healthcare company in SA and GHG is the leading independent healthcare provider in the UK.
Netcare applies the principles in King III.
Netcare was included on the JSE SRI Index in 2011.
Netcare achieved a Level 2 B-BBEE dti rating and an Empowerdex AAA rating.
Netcare was named the most empowered company in the JSE healthcare sector in the Top Empowerment Companies 2011 survey.
Netcare operates in a highly regulated environment where the interests and expectations of stakeholders are complex and inter-related. We are active participants in the industry, providing constructive input for all proposed legislation.

Fair payment terms.
Mutual respect.
Fair competition.
Netcare Rating Questionnaires assess our interactions with suppliers from procurement to payment.
Annual joint audits are conducted with selected suppliers to evaluate their performance against criteria, ranging from fair pricing and timeous delivery to additional value added services.

Create partnerships that will best facilitate Netcare’s corporate social investment (CSI) activities.
Create awareness of Netcare in our communities.
Netcare is an active and engaged member of the communities in which we operate. Our initiatives aim to increase access to quality healthcare and uplift communities.
CSI focus areas in SA include:
     –  Emergency medical services for indigent patients;
     –  Healthcare accessibility initiatives;
     –  Community health and welfare sponsorships; and
     –  Academic sponsorships.
In the UK, CSI involves sponsoring a range of outreach programmes including charities and fundraising events. In 2011, GHG launched a community outreach campaign called ‘Inspect Your Health’ which provides free mini health checks to businesses and the local community.
Our CSI response is extensively detailed in our SA and UK Corporate social investment reports on pages 77 and 101 respectively.