- Ramsay Health Care (RHC) has added the State of Western Australia to its list of Australian states which will access its services and facilities during COVID-19
- This announcement comes off the back of previously signed deals with Victoria, Queensland and New South Wales
- The deal means Ramsay can retain its workforce to help deal with the pandemic while receiving net recoverable costs
- Ramsay is up a slight 3.43 per cent with shares trading for $66.33 each
Ramsay Health Care (RHC) has added the State of Western Australia to its list of Australian states which will access its services and facilities during COVID-19.
This agreement follows a recent announcement from the ASX 200-lister, noting it would provide its services and facilities to the New South Wales Ministry of Health.
By May 7, Ramsay had already struck this deal with the State of Victoria and Queensland, but disclosed it was in discussions with New South Wales and Western Australia.
The term of the agreement began on March 31, 2020, and will end on the date notified by the state. 30 days notice of this will need to be given.
That notice must not be given before August 31 2020, which is the date the state determines that the Commonwealth Government’s temporary restrictions on private hospitals performing category three and non-urgent category two surgeries have been lifted, or on another agreed-upon date.
The deal means Ramsay can fully retain its workforce to help deal with the pandemic and receive net recoverable costs.
Recoverable costs include direct operating costs, services costs, corporate overhead costs, depreciation associated with pre-existing capital which is owned and depreciation associated with the amortisation of leases. This excludes interest and debt servicing costs.
Ramsay is up a slight 3.43 per cent with shares trading for $66.33 each at 2:15 pm AEST.