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Sunday Independent ; Clientèle Limited ; Old Mutual ; Affinity Health ; Sunday Independent. The Affinity Health Plan is a plan we are proud to accept from our patients in New York.
Affinity Health was Australia's biggest privately owned and operated clinic. Exceptional quality of leadership. Ironbridge's main added value is as follows: The Ironbridge allowed the company to launch only the second Australian personal loan on very attractive conditions, drawing on the expertise of Repco (the first Australian personal loan).
As a result, the discipline available to the senior managers in terms of making reports to the general press was of inestimable value during the course of the initial public offering procedure. The Ironbridge reinforced the community's hospitals governance by directly stimulating and empowering clinical principals and care managers with their own working capitals. Consequently, substantial liquid funds were raised and further improvements were made to hospitals' profit margin.
While Ironbridge met regularly with groups of chief physicians, it established research funding for certain types of clinical work. As a result, the doctor's mood toward affinity gradually increased, leading to better collaboration with duty planning, discharging and regenerating patients, and theater assistants. The Ironbridge has driven improvement in the way it deals with reported wrongdoing events in medicine.
Part of this was to ensure proper coverage, claim handling, attribution of guilt, etc. This resulted in the creation of a significant reserve upon withdrawal and the acceptance of insurance protection bids from a previously unowned insurance segment, which posed no problems for a prospective landlord. Overall, by bolstering current managerial strategy, streamlining the portfolios and promoting improvements in the area of MIS, Ironbridge has eliminated any problems that had impacted the value of Affinity at the time of the acquisition.
The Ramsay buys Affinity Health Hospitals
In October 2003, Ramsay Health Care tried to buy Mayne Health's clinics, but was taken on by a group of risk-lenders. Ramsay in 2005, only 18 month later, spent $600 million more to buy the same clinics. During 2003, Mayne resolved to sell his ailing department.
By far Mayne was the biggest privately owned and operated Australian clinic. The Ramsay Health Care was interested in buying these clinics and was the preferred tenderer. He had some problems with the sale that Mayne didn't want to fulfill. Citigroup member CVC Asia Pacific and a group of global risk capital investors purchased the clinics that wanted to reverse the deal and then floated it at a gain.
From a Macquarie Bank-led consortium in which Ramsay HealthCare and Benchmark Healthcare are members, Mayne has obtained an indication of nearly $800 million USD for the 4800 bed portfolios in 53 hospital leases. Macquarie's proposed transfer of the 53 Mayne clinics into a publicly traded real estate fund, with Benchmark and Ramsay sharing managerial responsibility for the institutions.
However, the transaction is also a frustrating strike for a Macquarie Bank-led consortium that includes the publicly traded Ramsay Health Care and Benchmark Healthcare private equity firms, which reached several important milestones in their negotiation. It is assumed that the Macquarie Consortium defended itself against the absence of cover against doctor's error and insurance claim prior to the purchase.
Although there have been concern about a privately funded investment company operating clinics that are clinically vulnerable, the fact that the vast bulk of senior managers are likely to remain in place is likely to benefit him. Risk capital investors who purchased Mayne clinics in October 2003 had planned to sell Mayneâs clinics (now Affinity Healthcare) later if they performed well.
You hurried to start the business before your passion for floating faded. The affinity was not yet nearly as lucrative as she had pledged. So far, the Pacific brands' floating by the same risk capital providers had cost expensive investments. At the time the proposed floating was awarded to institutions, they were less excited about the Affinity upside.
Obviously, the affinity owner would not get as much of a floating as they had been hoping. In the past, financial experts had often proposed a multi-national purchaser for Mayneâs hospital. During 2003, opposition was raised in most states of Australia to the assignment of Mayne Hospital to Affinity Health licences on integrity matters.
Authorization for the transaction was granted on April 18, 2005, four working days after Ramsay agreed to purchase Affinity Health. Taking into account the capital structure and global investments in Affinity Health LTd and the questions - - - - - - posed by the test persons, the Private HealthCare Branch conducted a comprehensive exercise and test person profiling.
Affinity Health Ltd.'s licensing terms refer to the Affinity Health Ltd. licensing organization's clinic and compliance structures, as well as the notice of any changes to the directors of the licensing entities. Has this robbery contributed to Affinity's early choice to resell or floating? Ramzay was the only Aussie business with the ressources and trustworthiness of the local markets to buy Affinity.
Affinity's present senior executives wanted to take the business public and run it further. So Ramsay had to at least reimburse Affinity's risk capitalists for what they had anticipated from the floating. Raamsay took the chance. Ramsay would own about 70 of the clinics, 27 per cent of the total hospital network - far more than any other provider - even after reselling a number of 51 affinity clinics to resolve competitive concerns.
While the ACCC has not yet made a determination, Affinity Health (now known as New Affinity) is likely to be abandoned with 20 or more clinics, a sizeable turnout, and more than the 15 clinics that Ramsay owned in 2000 before it began its fast pace of growth. Ramzay was able to wipe out its key competitor and at the same become Australia's largest privately owned clinic with unprecedented domination and levers.
Insurance companies would have to set an upper limit. Ramsay payed the top dollar for all this, 1.4 billion dollars, 600 million dollars more than 18 month before. Ramsay does not seem to be the kind of man who will ruthlessly use his new powers, so hopefully we can anticipate temperate and reasonable behavior while he remains in charge.
However, in commentaries that reflect the fear of the continued strong ness of the listing markets in the face of the $1 billion floating rate under discussion, Affinity CEO Robert Cooke has acknowledged that the initial public offering (IPO) markets are "giving in a little". "For a number of reason, the best we can do (is) the quicker the better the marketing," said Mr. Cooke.
" As Ramsay restrains himself from showing his hands and hopes that the markets will slow down, Affinity wants the best of both worlds: top dollars if nothing happens with Ramsay, or a deal sales in front of the markets will slow down too much if Ramsay or someone else can't withstand it. One way or another, Affinity left the watch on.
UBS may be compelled to lower the anticipated floating rate of the Affinity Health group of hospitals after a gathering of funds executives who saw themselves prevented from spending the top Dollar at a period when equities look progressively weaker. However, some funds executives rejected the prize charged by the companies and declared their resistance to UBS at the formal UBS summit, saying they would not offer a bonus for the share.
"Since Mayne' s sale, Affinity has been improving its activities and profit margin, but that was from a low basis. The difficult part comes now and it took a business like Ramsay 10 years to do that. "With CEO Robert Cooke voicing his concerns about the dwindling IPO and Ramsay Health Care looking on from the sideline, the funds reaction to the pitch is critical to whether Affinity makes it to the open or into the hands of a trading consumer.
Does Affinity show a convincing rationale for supporting a floating investor? Both Citigroup and UBS appear to recognize that Affinity's margin is not as good as that of Ramsay, but it could be. Because the only time Affinity's stockholders would want to buy before a floating is if they could get a similar amount through a zero terms deal, there will be some in-depth considerations.
Institutions seem to be taking retribution to Affinity Health's principal shareholder CVC Asia Pacific by preventing schedules to build the former Mayne Hospitals' empire and left a deal to Ramsay Health Care as the likely result to be released today. CVC and Affinity's co-owners always seemed a little wealthy to explore the markets for another floating, while CVC's latest endeavor, Pacific Brands, is trading at a rebate on last year's issuing prices of $2.43 vs. $2.50 this year.
At Ramsay Health Care we are ready to buy Australia's largest privately owned healthcare provider, Affinity Health, in a $1.4 billion deal that will end our stock market float plan for one of the largest this year. This multi-stage operation includes a $450 million Ramsay raised and $400 million Ramsay sold from Affinity and Ramsay portfolio clinics to reassure the Australian Competition and Consumer Commission.
With 45 Australian and three Indonesian clinics, Affinity has nearly 6,000 patients and a small number of clinics. They have a share of around 18 percent of the Australian privately owned healthcare sector. It also comes because Affinity's banks, UBS and Citigroup, have found it difficult to convince institutionals of the value of the affinity floating.
2005 Did ramsay overpay? "You have to come up with a really good excuse to warrant it," said Jakov Males, health researcher at Allianz Dresdner Asset Management, yesterdays. Brent Mitchell, Shaw Stockbroking health care researcher, said it was "a big bite" that could affect Ramsay's short-term returns, and added that Affinity's margin was "indifferent".
Affinity Health leaders, supported by a consortium of independent equities companies, will buy up to 20 privately owned clinics that will be resold after a $1.5 billion transaction from the Ramsay Health Care and Affinity Health portfolios. It is assumed that the Australian Competition and Consumer Commission imposed the sales of up to 20 privately owned Ramsay Affinity clinics because certain basins, such as the southeastern Melbourne outskirts, intersect each other.
"In order to ease and continue the deal, however, Ramsay and Affinity have made commitments to the ACCC. They will retain the affinity franchise as an independent and workable company until the ACCC has concluded its investigations. "At the same date, Ramsay has reached a non-binding agreement to sell 14 clinics to some of Affinity's present shareholders, CVC Asia Pacific (CVC) and Ironbridge Capital (Ironbridge), for net sales of $406 million.
Ramsay's expanded group will have 74 clinics with approximately 8,100 bed places, representing a 27 percent increase in Ramsay's hospital footprint after selling 14 clinics for $406 million to comply with Australian Competition and Consumer Commission (ACCC) regulations. AFFINITY' Managing Director Robert Cooke and his top executives have just earned $40 million by selling their hospital to Ramsay - but they are broken because their dreams are over.
But it was Cooke's skill that earned risk capital investors $550 million, or twice their cash, in just 18 month after buying Mayne clinics. Paul Ramsay, the purchaser, is enthusiastic because he has not only got the clinics at a cheap cost, but will also earn a fortune because he has 27 percent of the personal clinic business and the clinics in all major roles and the health insurance companies remain helpless to put downward pressures on him.
Ramsay Health is excellently positioned thanks to Australia's growing aging people. cause he wanted to start Australia's biggest group of hospitals. Now Paul Ramsay will realize the Robert Cook dreams. Ramsay's capacity to resell 30 percent of the assets also minimizes the watering down of the Ramsay family's share of the Group, which will decline from 51 to 51.
Though Cooke and his top managers will take about 40 million dollars from the sales, he is not satisfied with the result. "Look, so many innocent individuals have put their hearts and minds into building a company that not only improves profits, but above all (patient) healthcare. "Ramsay HealthCare Managing Partner Pat Grier has become much more influential in the Australian personal healthcare industry.
And, in an uncommon venture, Ramsay has said to the Australian Competition and Consumer Commission that it has "absolute discretion" to enforce the sales of even more clinics from the Affinity or Ramsay portfolio. One comforting fact on the prize is that Cooke and other affinity manager buy the 14 Ramsay selling clinics for $406 million.
The Australian Consumers' Association health politician Nicola Ballenden said Ramsay's new dominant position in the markets puts downward pressures on rate increases. "Every shakeout is good for Ramsay and less good news for personal health insurers, because they can put more strain on negotiations with health insurers regarding their costs," she said.
Ramsay's $1.43 billion purchase makes it the country's biggest privately held hospital operating company, but the two firms are not permitted to begin integrating until the ACCC gives them the go-ahead. Ramsay Health Care sees the prospects of having to resell 10 clinics in addition to the 14 clinics it has already pledged to provide as not only poor, but also that it will resell to the former Affinity Health shareholders, the CVC Asia Pacific and Ironbridge PIF.
Indeed, the additional clinics that Ramsay is now likely to have to divest are likely to be the last large portfolios of legacy facilities on the shelves. The ACCC will not necessarily want to do anything that leads to higher rates for commercial health insurance (e.g. if the Ramsay fusion allows it to raise the cost of hospitals), and it is an area that is highly vulnerable policy.
It is the third owner shift for many of these clinics. Mastering a calidoscope of leadership changes is a disturbance of nursing work. Affinity and Ramsay both value the importance of physicians, especially since the Mayne DeBack. Mayne, and then Affinity's convalescence, was predicated on delighting her. Citigroup's US expertise in consulting healthcare firms would have drawn their attention to the professional's susceptibility to economic pressure.
affinity has tried to take aim at the physicians by lining up their waist bags with those of the outfit. Collaboration between physicians and clinics is indispensable in a healthcare like this. That leads to health issues in the workplace when, as so often, the company's earnings priorities collide with the staff and facilities for proper health services.
Therefore, it is interesting that Affinity physicians should be discounted when introducing Affinity stocks, and that this rewards should be linked to the work they did for the hospital. Ramsay does not offer physicians stocks or stock option preferred, but accounts of physician stock negotiation in Ireland suggest that he is not against physicians becoming shareholders.
As part of Affinity's floating schedule, it prepared to provide free bonuses to the 4,000 physicians and professionals who periodically transfer to Affinity Health's 48 hospital facilities when they became an investor in a phased system that rewards large work gensets for their contributions to the company's development. Physicians and consultants are critical to Affinity's aspirations for further expansion as they are in fact the affinity generator of businesses and determine where a person could have a surgery performed.
According to a funds executive, Affinity intends to offer one free incentive stock to physicians and consultants for every four stocks they subscribe to. Ramsay suggested as part of the transaction to purchase Affinity that 14 clinics be sold back to Affinity (now New Affinity ) to prevent competitive issues. Meanwhile, the value of the hospital rose and Ramsay wanted more for it.
Cooke, the executive whose expert knowledge had revived Mayne Hospital and whose negotiating the sales, stepped back and came back to Mayne Health. We' ve been warned of a deal. The Healthscope took the chance and purchased the 14 clinics that paid much more for them. However, Affinity Health lodged an appeal, arguing that ACCC had consented to the sales to Ramsay since there were three competing companies on the relevant shelves.
and the ACCC authorized the disposal of the 14 clinics. but Healthscope bargained for the other five, but that was canceled. The five are marketed to smaller, non-profit or privately owned companies. affinity health is being disbanded. However, discussions between Ramsay and retail equities gamers have stalled over complicated rights and property matters.
Robert Cooke tells The Age that the decision between reconstructing Affinity - which will include 14 clinics sold by Ramsay - and getting to Mayne was difficult. Now that Cooke Mayne is the key player locally, New Affinity donors CVC and Ironbridge need to find new managers to ensure financing and update them.
While Ramsay was about to make a New Affinity transaction, he is not required to hand the hospital over to Affinity. In fact, it may now make good business of Healthscope catching your attention with the abrupt pit in New Affinity's leadership now. Belief in senior executives is the enabler to supporting venture capital and analysts are now wondering whether Affinity will get the financing without them.
It also suggests that the value of Affinity in the near term is lower without Mr Cooke, so Ramsay may not be able to anticipate such a high asking rate. Graeme Samuel, chair woman of the Australian Competition and Consumer Commission, has informed Ramsay that in order to obtain permission for the takeover she must divest 19 clinics - three more than the 16 already approved by Ramsay.
Ramsay Healthcare's $490 million sales of 14 healthcare clinics to Healthscope looks like it is going through after a regulatory sales related issue was rejected. Healthscope, the privately owned Hospitalscope, has excluded the purchase of five more clinics from its competitor Ramsay Healthcare. On December 12, 2005, Ramsay divested the other five clinics to the Thynne Dynasty for $88 million.
Thynnes were a Gold Coast dynasty whose dad, the surger, had been implicated in owning the clinic over the years. In 2002 this company amalgamated with the loss-making Nova Healthcare. Externals were engaged to divest lost asset and restructuring Nova for divestiture to Healthscope in 2005. Mr Ramsay said that it had signed firm agreements with the BCN Group, led by the Thynne dynasty, on the disposal of the five clinics and with the commercial real estate investment company SAI Teys McMahon on the acquisition of the real estate.