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ICSGlobal (ASX:ICS) suspends guidance as the U.K. endures COVID-19

Health Care
ASX:ICS
22 April 2020 11:15 (AEST)

Medical billing service ICSGlobal (ICS) has suspended its guidance for the duration of the COVID-19 pandemic.

In a market announcement on Tuesday, the company explained its response to the ongoing health crisis, especially in the United Kingdom. ICSGlobal’s primary operating business is Medical Billing Collection (MBC), which operates in the U.K.

To date, MBC has continued to trade consistently, in line with the guidance which the company previously provided. Unfortunately, the impact of the coronavirus has created an uncertain market environment, forcing the ICS Board to suspend its guidance. While the company has not yet experienced any changes in its financial balance, it is likely that this will change.

In particular, the operating environment in the United Kingdom has seen a number of changes as a result of COVID-19. British GP’s have become significantly busier, as the British healthcare system struggles with the coronavirus.

The country’s National Health Service (NHS) has reassigned a number of consultants and facilities to meet the demand. This secondment has reduced the number of services which MBC will bill. Private facilities have also been transferred to the NHS, reducing the number of elective and private procedures that can be performed.  

Furthermore, Private Medical Insurers (PMI’s) are agreeing to pay claims for services provided over the phone. Unfortunately, PMI’s have had to close call centres, which makes resolving queries far slower than usual.

Any of these changes have the potential to change company turnover and profitability, for better or for worse. 

In the meantime, MBC’s management and employees are working to reduce work-related risks to their health and safety. All staff are currently working from home, with the use of secure MBC equipment, including computers, printers, and communications.

The company has “stress-tested” its business model, to ensure ongoing operating in the case of hypothetical staff absences. Now, the team is ready for the possibility that a material percentage of staff may go on sick leave. 

ICSGlobal has implemented a number of cost-cutting measures, although it did not specify what these were. The company did reveal that it may take advantage of the UK government’s COVID-19 employee assistance programs.

ICSGlobal’s share price remains in the grey today, with stock trading for $1.70 per share at 11:08 am AEST.

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