Australia's second largest private hospitals operator, Healthscope, says all its businesses are performing strongly, and its hospitals division has strong growth opportunities.
Healthscope chief executive Robert Cooke says the dynamics of the Australian healthcare industry are favourable, given a growing and ageing population, greater medical treatment capabilities, and a high level of private health insurance coverage.
Mr Cooke says there are strong growth opportunities for Healthscope's hospitals division, which generates 79 per cent of group earnings.
"There has been significant activity around hospital expansion projects in recent months," he said on Wednesday.
Four projects currently under construction include the new Gold Coast Private Hospital, and a major expansion at the National Capital Private Hospital in Canberra.
Development approvals had recently been received for upgrades at the Norwest in Sydney and Knox Private Hospital in Melbourne, with construction expected to start in the near future.
Healthscope on Wednesday reported a net loss of $19.3 million for the year ended June 30, which was an 83.6 per cent improvement on the loss of $117.3 million a year earlier.
The bottom line was skewed in both years by non-operating expenses totalling $31.7 million in fiscal 2014 and 165.6 million in fiscal 2013.
Operating earnings before interest and tax rose 11.2 per cent to $262.3 million.
Healthscope said its operating result was in line with the forecast in the company's prospectus ahead of its relisting on the Australian Securities Exchange in July.
Mr Cooke said all of Healthscope's businesses - hospitals, pathology and medical centres - were performing strongly and positioned well for the future.
"The clear strategies that are in place, the strong growth pipeline and the attractive industry fundamentals together provide a favourable outlook for the company, both in fiscal 2015 and beyond," he said.
Healthscope said it was on track to achieve its prospectus forecast for operating earnings before interest and tax of $284.7 million in fiscal 2015.
Healthscope was removed for the market in 2010 after a takeover by private equity firms TPG and The Carlyle Group.
Shares in Healthscope were four cents lower at $2.23 at 1457 AEST.
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