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Medica hit by significant case reduction as coronavirus spreads

By BFN News | 10:01 AM | Tuesday 07 April, 2020


Teleradiology services provider Medica said it had experienced a significant reduction in cases being outsourced by its National Health Service clients amid the Covid-19 crisis. At its Nighthawk business, the company said it was seeing a decline of around 50% in out-of-hours reporting activity. 'We could expect this to fall further to between 60-70%,' it added. Routine division activity, meanwhile, had dropped by about 90%, with many NHS hospitals having already suspended non-urgent elective procedures. 'We could expect up to 100% reduction in activity overall as the situation evolves and the NHS focus shifts entirely to dealing with COVID-19 cases,' Medica said. 'The company has a strong balance sheet and is well-placed to continue to deliver its high-quality service to support the NHS during this time of unprecedented pressure on healthcare resources.' 'Furthermore, the business model of the company is such that approximately two-thirds of the cost base is variable as reporters are not paid unless there are images available to report.' 'The company will reinstate short-term guidance once the impact of COVID-19 becomes clearer at a time when we have better insight on the length of impact and the recovery phase of the service.' At 10:01am: (LON:MGP) Medica Group Plc share price was -7.95p at 102.05p Story provided by StockMarketWire.com

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