Asklepios Group: Asklepios shows resilience in 2023 financial year

Despite the challenges arising from persistent inflation and structural uncertainties in the healthcare sector, Asklepios Kliniken GmbH & Co. KGaA closed the 2023 financial year with sound results and demonstrated its economic resilience. The upcoming hospital reform will bring major challenges for the healthcare sector. As a strong hospital group with a stable shareholder structure, Asklepios considers itself well positioned in structural terms for the tasks that lie ahead.

The 2023 financial year was influenced by a challenging regulatory environment, general cost inflation and price increases triggered by the ongoing war in Ukraine. Higher staff costs also had an impact on earnings. In this context, the Management Board is happy to be able to report a stable year-on-year development and to have kept consolidated net income at the previous year’s level.

The Asklepios Group treated approximately 3.5 million patients at its 164 healthcare facilities in the 2023 financial year. Despite structural uncertainties in the healthcare sector, Asklepios thus achieved a slight increase in comparison to the previous year (2022: 3.4 million patients). The number of full-time equivalents changed from 49,103 in the previous year to 49,425 on average in 2023. This reflects how Asklepios’ commitment to recruiting specialists on the international labour market as well has paid off. Investments from its own funds amounted to EUR 229.6 million (2022: EUR 218.3 million).

Joachim Gemmel, CEO of Asklepios, explains: “Our mission at Asklepios is to guarantee the best medical care. Sustainable investments in our hospitals are essential here, as our patients’ needs are always at the heart of what we do. That’s why we bring state-of-the-art medicine to where it is needed – whether in the city or in rural areas.”

Marco Walker, CEO of Asklepios, adds: “In view of a demanding market environment, we also see a challenge as an opportunity for progress. We are deliberately taking new approaches and have a clear strategy for continuously optimising healthcare. Our considerations here are particularly focused on digitalisation.”

Revenue amounted to EUR 5,452.3 million in the 2023 financial year (2022: EUR 5,290.0 million). The absolute cost of materials rose by EUR 54.8 million to EUR 1,339.0 million (2022: EUR 1,284.2 million), representing an increase of 4.3% on the previous year’s figure. The cost of materials was affected by mainly inflation-related price increases, as well as by volume- and severity-driven increases. Overall, the cost of materials ratio worsened year-on-year to 24.6% (2022: 24.3%).

Staff costs climbed by EUR 201.1 million to EUR 3,660.3 million on the basis of collective agreements and due to the increase in full-time equivalents, while the staff costs ratio rose to 67.1% (2022: 65.4%). “We are countering the shortage of qualified staff with our strategy of attracting full-time staff on the international labour market too. Here we will continue to take action. We know that medical professionals are essential for the quality of treatment,” explains PD Dr med. Sara Sheikhzadeh, CMO at Asklepios.

Other operating expenses rose by EUR 69.8 million (14.3%) to EUR 558.1 million (2022: EUR 488.3 million). The ratio was 10.2% (2022: 9.2%). Consolidated net income (EAT) amounted to EUR 135.7 million in the financial year (2022: EUR 131.9 million), while the margin was unchanged year-on-year at 2.5%.

The equity ratio as at 31 December 2023 was below the previous year’s figure at 29.4% (31 December 2022: 29.7%). As at 31 December 2023, net debt amounted to EUR 1,767.3 million (31 December 2022: EUR 1,871.8 million). The net debt ratio was reduced to 3.3x (31 December 2022: 3.5x).

“Asklepios’ balanced financing strategy allows it to counter macroeconomic fluctuations and structural challenges effectively,” explains Hafid Rifi, CFO of Asklepios. “In view of the upcoming hospital reform and the anticipated significant strain on our healthcare facilities, our stable capital structure is particularly important.”

Asklepios expects the war in Ukraine, the resulting price hikes and general cost inflation to continue to impact the business development and performance in 2024. As a large hospital group, Asklepios was able to react comparatively flexibly to changes in the market and to absorb negative influences to a manageable extent. In addition to the challenging regulatory environment, Asklepios also assesses the upcoming hospital reform as critical. Overall, however, Asklepios anticipates a stable revenue and earnings performance in the 2024 financial year.