Western hospitals leave Emerging Markets well alone

 02-Mar-16, Healthcare Business International

So what happened to Ramsay Health Care’s share price after it announced the cancellation of its big project in China? It went up 1%.

Image: World Crunch

The truth is investors have become increasingly chittery about China’s investment prospects in the intervening period. Investing there has gone out of fashion.

It is also noticeable that almost all the big “Western” hospital chains have steered clear of Emerging Markets. Ramsay is ploughing money into France, where tariffs are expected to drop 2% shortly.  

None of this is likely to change soon - even for management contracts. It is local entrepreneurs, linked to local elites and often local investors who will build hospital groups in Emerging Markets.

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