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2020 SUSTAINABLE DEVELOPMENT REPORT
ABOUT THIS REPORT
Mediclinic International plc (‘Mediclinic’ or the ‘Company’) is
proud to publish a Sustainable Development Report annually as
part of a suite of reports in respect of both the 2019 calendar year
and 2020 financial year.
The reporting suite listed below is available on
the Group’s website.
• 2020 Annual Report and Financial Statements
• 2020 Clinical Services Report
• 2020 Sustainable Development Report
• 2020 Notice of Annual General Meeting
SCOPE
The goal of this Report is to provide Mediclinic stakeholders with an
overview of the most important sustainable development initiatives
across its divisions in Switzerland, Southern Africa (South Africa
and Namibia) and the United Arab Emirates (the ‘UAE’)
(collectively, the ‘Group’) for the 2019 calendar year. Information is
disclosed on a calendar year basis, unless stated otherwise.
COVID-19
It is important to note that the COVID-19 pandemic falls
outside of this reporting period and will be discussed in the
2021 Sustainable Development Report.
Mediclinic reports on its material issues at a Group level, but also
discloses information on divisional initiatives and performance, as
this is the level at which data is collected.
Although certain information is segmented per division, it should be
noted that in certain instances data from other South African-based
entities, which are either wholly owned by or a subsidiary of the
Company, has been included in the disclosure allocated to
Mediclinic Southern Africa.
The report does not include information on initiatives undertaken
by Spire Healthcare Group plc, a leading private healthcare group
based in the United Kingdom (‘UK’) and listed on the London Stock
Exchange (‘LSE’), in which Mediclinic holds a 29.9% interest.
GUIDELINES
Mediclinic reports in accordance with the core option of the
Sustainability Reporting Standards developed by the Global
Reporting Initiative (‘GRI Standards’). The GRI Standards
Disclosure Index, which indicates the location of the standard
disclosures, is published on the Group’s website.
NON-FINANCIAL INFORMATION STATEMENT
The Company’s Non-financial Information Statement is published
on page 6 of the Strategic Report section of the 2020 Annual
Report and Financial Statements, in accordance with the
Companies, Partnerships and Groups (Accounts and Non-financial
Reporting) Regulations 2016. The regulations adopt the European
Union (‘EU’) Non-financial Reporting Directive 2014/95/EU, which
requires disclosure of information about policies, risks and
outcomes regarding:
• environmental matters – refer to Material issue 1:
Neutralising environmental impact on page 26;
• employee, social and human rights matters
– refer to Material issue 2: Building stakeholder
trust on page 36; and
• anti-corruption and anti-bribery matters – refer
to Material issue 3: Being an ethical and YOUR VIEW
responsible corporate citizen on page 66.
IS VALUABLE
APPROVAL Mediclinic welcomes the
Mediclinic’s Clinical Performance and Sustainability Committee opinions of its stakeholders. Please
approved this Report on 13 May 2020. contact Marlene de Beer on
GLOSSARY OF TERMS tel: +27 21 809 6500 or email:
Capitalised terms used in this Report are defined in the Glossary marlene.debeer@mediclinic.com
of terms on page 73. with queries or suggestions.
CONTENTS
2020
SUSTAINABLE
DEVELOPMENT
REPORT 26
2 Awards and accolades CONSERVE
4 Foreword Mediclinic takes responsibility
for its operations beyond its
facilities to mitigate the risks
Introduction of climate change.
6 At a glance
8 Business model
10 About sustainable development
at Mediclinic
12 Stakeholders
24 Materiality assessment
36
KLINIK IM PARK
Conserve
26 MATERIAL ISSUE 1:
Neutralising environmental CONNECT
impact
The Group is dedicated to
partnering with all its
stakeholders and forging
Connect long-term relationships.
36 MATERIAL ISSUE 2:
Building stakeholder trust
Comply
66 MATERIAL ISSUE 3:
Being an ethical and
responsible corporate citizen
71 Independent assurance
73 Glossary of terms
75 Contact details
66
COMPLY
The Mediclinic corporate
culture entrenches the
values of ethical and
responsible behaviour.
MEDICLINIC’S
CORE PURPOSE
IS TO ENHANCE
THE QUALITY
OF LIFE
MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORT 1
AWARDS AND
ACCOLADES
GROUP HIRSLANDEN MEDICLINIC MEDICLINIC
SOUTHERN MIDDLE EAST
AFRICA
Constituent of 16 out of its 17 hospitals Ranked 28th of all Awarded Superbrand
FTSE4Good, an are registered as CO2- JSE Ltd-listed companies status by the UAE
index that recognises reduced businesses by in the Top 50 Brand Superbrands Council for
companies for strong the Energy Agency of South Africa rankings for 2019, the fourth time in
environmental, social the Swiss Private Sector, 2019, making it the top five years.
and governance and were awarded with South African healthcare
Baby Friendly Hospital
(‘ESG’) practices. CO2- & kWh-reduced provider for more than
accreditation awarded to
certificates. five years in succession,
Mediclinic City Hospital
according to Brand
Ranked the fifth most as part of a global
Finance and Brand Africa.
attractive employer in initiative by the World
the Swiss healthcare Achieved Global B List Health Organization
FTSE4Good
sector by healthcare status from the CDP for (‘WHO’) and the
professionals in water conservation and United Nations (‘UN’)
an independent climate change actions. Children’s Fund.
Signatory of the CDP
study by Universum
(originally the Carbon 320 pro bono Awards at the Mother,
Communications.
Disclosure Project), an surgeries performed Baby & Child Awards
organisation based in Supports Mercy Ships on patients from 2019 for Mediclinic City
the UK which supports charity, a ship-based public health waiting Hospital:
investors, companies healthcare service, lists in collaboration
• Women’s health
and cities to measure financially and with with provincial health
services – gold
and disclose their medical personnel departments and
environmental impact. by granting leave to doctors associated • Maternity services –
employees who want to with Mediclinic. silver
volunteer and continuing
Six hospitals included in • Paediatrics – gold
to pay a portion of their
Discovery Health’s Top 20 and Mediclinic Parkview
salary during their time
Private Hospitals in South Hospital:
on board.
Africa 2019, based on the
results of patient surveys. • Hospital of the
Year – silver
2 MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORT
Sustainability is particularly important
to me as it’s a responsibility I’ve taken
on in many of the organisations I’ve
worked for. Mediclinic’s coherent
sustainability strategy brings together
initiatives across the Group. It sheds
light on our use of resources and how
much we value them – not just natural
resources, but financial capital and
human assets. The targets we have set
for 2030 – to be carbon neutral and
send no waste to landfill – show just
how seriously we take this.
Dr Felicity Harvey, Chair of the Clinical
Performance and Sustainability Committee
MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORT 3
FOREWORD
Dr Ronnie van der Merwe
Group Chief Executive Officer
As a healthcare provider, Mediclinic needed to reduce our impact.
not only strives to create value every To minimise the impact of our
day by providing cost-effective, activities on the environment and
quality care and outstanding client the impact of climate change on
experiences, we also take a broader our business, we are committed
approach to value creation by taking to achieving carbon-neutral status
responsibility for our operations and zero waste to landfill by 2030.
beyond just our facilities. We are
• Connect (social)
providing care in a world that is
GOAL: To be the partner of choice
being reshaped by evolving client
that all our stakeholders trust
needs, regulatory frameworks
and climate forces. This calls for a Trust takes years to build. It is
sustainable approach in everything fundamental to our purpose and
we do, from the way we utilise our industry. Over a period of more
natural resources and engage than 30 years, we have connected
with employees to the type of with our stakeholders in such a way
investments we make and how we that they all trust in our expertise.
conduct our business. Read more about our stakeholders
and our continued engagement
During the 2019 calendar year, we
with them from page 12.
identified sustainable development
as a critical transformation driver, • Comply (governance)
which resulted in the review and GOAL: To strengthen our
approval of a formal Sustainable corporate culture to remain
Development Strategy. The strategy an ethical and responsible
and its resultant action plans revolve corporate citizen
around our sustainable development To minimise the
Mediclinic is accountable to its
mission to ensure that every day we
stakeholders to operate in a impact of our
improve sustainability by managing
our resources responsibly and
responsible and ethical manner. activities on the
Our governance structures
efficiently to the benefit of our
are intended to support an
environment and
stakeholders and the environment.
Our goals, sub-goals and objectives
environment in which the the impact of
organisational values of the
in this regard can be divided into the
Group are embraced and lived
climate change on
three central categories of ESG:
daily by encouraging a culture of our business, we are
• Conserve (environmental) transparency and vigilance.
GOAL: To neutralise the
committed to
Company’s environmental impact
ABOUT THE REPORT
This Sustainable Development
achieving carbon-
We acknowledge that climate Report gives insight into the neutral status and
change poses a material risk to our
operations and the environment,
Mediclinic strategic goals that
shaped our activities in the past
zero waste to
and that appropriate action is year and reflects on both the landfill by 2030.
4 MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORT
It is perhaps not so surprising that Mediclinic
employees are invested in their work – they, like
us, are motivated to provide the very best care.
achievements made and our goals TOGETHER WE SUCCEED In 2019, we also enhanced the
for the future. It is in line with the In our mission to create value, we quality of life in our communities
revised UK Corporate Governance have undertaken to listen carefully by expanding our public-private
Code, which amplifies reporting to how stakeholders feel and what partnerships (‘PPPs’) to collaborate
on corporate culture, stakeholder they want by reaching out in a with leading tertiary institutions
engagement and sustainability. We variety of ways. One of these is across all three geographies to offer
welcome this opportunity to share Your Voice, our annual employee even more training opportunities to
more about Mediclinic’s way of engagement survey, which in the workforce of tomorrow, especially
doing things. 2019 was completed by 83% of medical and nursing students.
During the year, the Clinical employees, an increase on the In our sustainability strategy, we
Performance and Sustainability previous year. have drawn together knowledge
Committee, a Board committee, also It is perhaps not so surprising that across the Group to ensure we have
reviewed and approved an update Mediclinic employees are invested a holistic approach to addressing
to the Group’s material sustainability in their work – they, like us, are the challenges we face. We have a
issues. motivated to provide the very best particular advantage operating in
care. But it is a sign that our efforts three different environments on three
This Report focuses on how we
continents, which allows us to make
conserve our environment, connect to make a difference in employees’
the most of our collective divisional
with stakeholders and comply with lives – through initiatives that focus
strengths. Whether that means
ethical responsibilities. For more on wellness, safety, diversity and
drawing inspiration from Hirslanden’s
on our quality healthcare services, inclusion – are paying off. As one of
war on waste, taking lessons from
operational developments and how the Group’s strategic goals, being
Mediclinic Southern Africa’s water-
we create shareholder value, view the employer of choice is key to
and electricity-saving successes or
the 2020 Annual Report; our attracting and retaining talent and
gaining know-how from the clinical
clinical performance is covered in securing our standing as a leading
clerkships offered and innovative
the 2020 Clinical Services Report. global healthcare provider.
approach at Mediclinic Middle East.
As a Group, we are well positioned
to continue delivering quality care
in a sustainable manner. I’d like to
thank the Mediclinic employees
whose dedication and efforts make
it possible. Collectively we can
bring real social, environmental and
economic value to all whose lives
we touch.
Dr Ronnie van der Merwe
Group Chief Executive Officer
MEDICLINIC GARIEP
MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORT 5
INTRODUCTION
AT A GLANCE1
A UNIQUELY
INTEGRATED
INTERNATIONAL
HEALTHCARE PARTNER
Mediclinic is an international
private healthcare services group,
established in South Africa in 1983,
UK
with divisions in Switzerland,
Southern Africa (South Africa
and Namibia) and the UAE.
Switzerland
SWITZERLAND
Hirslanden, the leading private
healthcare provider in Switzerland,
is recognised for clinical excellence
and outstanding patient experience
www.hirslanden.ch
SOUTH AFRICA
AND NAMIBIA The UAE
Mediclinic Southern Africa is one of
the three major private healthcare
providers in the region with a
relentless focus on offering value
to all its partners and clients
www.mediclinic.co.za
THE UAE
Mediclinic Middle East has
established a trusted brand and
strong reputation in this developing
region by offering clinical care of
internationally recognised standards
www.mediclinic.ae
THE UK
Mediclinic has a 29.9% stake in Spire
www.spirehealthcare.com South Africa
& Namibia
6 MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORT
76 8 11 623
Beds
Hospitals2 Sub-acute3 and
specialised hospitals4
453 14 21
Theatres Day case clinics 5
Outpatient clinics6
33 140
Permanent and
fixed-term employees
BETTER WAYS TO CARE
Mediclinic is focused on providing specialist-orientated, multidisciplinary services across the continuum of care in
such a way that the Group will be regarded as the most respected and trusted provider of healthcare services by
all stakeholders in each of its markets.
N
I O PREVENT A
PARTNERSHIPS T N
A A
S L
I ENHANCE
L
Y
A
T
RECOVER
I T
I C
GROWTH
G
S
Telemedicine
CARE RECENTLY LAUNCHED
D I
Day case
clinics Specialised
hospitals IVF
TO ENHANCE
Sub-acute THE QUALITY
hospitals OF LIFE
VA
Diagnostics Outpatient
clinics
L U
Acute-care Genetic services EXPANSION
N
hospitals COMING SOON
E
I O
T
A
Q
E
V
U Health awareness O IOR
A
WINELANDS
and education
N
INSTITUTE OF
ORTHOPAEDICS AND
RHEUMATOLOGY ORTHOPAEDIC HOSPITAL
T
I O I N
N
Notes
SPRINGS
1
Figures disclosed at 31 March 2020.
2
Provides patient treatment with specialised medical and nursing staff, and medical equipment.
3
Provides comprehensive goal-orientated inpatient care designed for a patient who has had an acute illness, injury or exacerbation of a disease process.
4
Provides specialised in-hospital care, catering for single specialities such as a cardiac hospital, paediatric hospital, etc.
5
Provides elective procedures, surgical procedures and planned medical procedures, but admits and discharges patients on the same day.
6
Provides consultations (by general practitioner, specialist or allied healthcare professional) with no theatre facilities.
MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORT 7
INTRODUCTION CONTINUED
BUSINESS MODEL
Mediclinic’s business model enables it to quickly respond to opportunities and
risks, while safeguarding clients, employees and the interests of stakeholders.
The Group is expanding the horizon of what care can be.
THE 83.9% 3
OUTCOME Group grand mean score Market-leading positions
for Press Ganey® patient in three geographies
experience survey1
2% 83%
compounded growth in admissions Participation in Gallup® employee
in the past five years engagement survey
PUTTING PATIENTS FIRST MAINTAINING CLINICAL
THE CARE
By taking a holistic view of clients’ needs, EXCELLENCE
Mediclinic is focused on improving all With more than 115 healthcare facilities
aspects of the healthcare value equation across four countries, Mediclinic applies
– clinical outcomes, client experience stringent quality standards regardless
and cost. The Group is ensuring that of location. The Group provides
clients are able to receive quality care care and facilities of international
in the right care setting at a cost that standard with more than 10 different
is fair, predictable and transparent. It accreditations and certifications and
also maintains dialogue with clients various international benchmarking
and communities through public health initiatives to meet local requirements.
awareness campaigns aimed at improving
lifestyle choices and overall health.
Learn more in the 2020 Clinical
Services Report available at
annualreport.mediclinic.com.
THE EXPERTISE EMPLOYEES
With experience and insight gained Mediclinic’s employees play a pivotal
FOUNDATION over more than three decades of part in achieving its strategic goals. To
maintaining market-leading positions empower every employee, the Group
in diverse geographies, the Group has continuously builds on a culture that is
created expertise that spans across client centred; trusting and respectful;
all aspects of the business – from patient safety focused; performance
client care, patient safety, nursing driven; and team orientated. Through
and specialised medicine to facility its strategies dedicated to diversity and
management, procurement and inclusion, and attracting and retaining
finance, and acquisitions. top talent, Mediclinic secures its future.
8 MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORTWe exist to care for our clients when they are at their most vulnerable. Herein lies our true
value: harnessing the exceptional talent, compassion and energy of Mediclinic employees
and partners to ensure our clients receive cost-effective, quality care and outstanding
client experiences. Dr Ronnie van der Merwe, Group Chief Executive Officer
8
ENABLED BY THE MEDICLINIC
GROUP STRATEGY:
Trusted by eight tertiary institutions Constituent of
across all three divisions to help FTSE4Good
train the healthcare workers of PURPOSE
tomorrow To enhance the quality of life
±£114m Signatory of
the CDP
VISION
To be the partner of choice
Economic contribution to that people trust for all their
healthcare needs
monthly salaries
ORGANISATIONAL VALUES
Client centred
FINDING BETTER WAYS TO CARE LEVERAGING KNOWLEDGE Trusting and respectful
In order to align its service offering AND SCALE
Patient safety focused
with the needs of clients, Mediclinic The power of Mediclinic is that
is expanding its core operations it operates as a Group, not three Performance driven
to position itself as an integrated separate divisions. Close working
Team orientated
healthcare provider across the relationships enable learning to be
continuum of care. Through innovation, shared across geographies. Highly
STRATEGIC GOALS
acquisition, partnerships and specialised medicine and cancer
expansion, the Group is expanding to care, procurement synergies and Goal 1: To become an integrated
provide a seamless suite of healthcare enterprise resource management healthcare provider across
services that prevent, treat and recover, have been established as a direct the continuum of care;
all under the umbrella of a single, result – all enhancing Mediclinic’s Goal 2: To improve our value
connected system. services and efficiency. proposition significantly;
Goal 3: To transform our
healthcare services and
client engagement through
digitalisation;
Goal 4: To evolve as an
analytics-driven organisation;
STAKEHOLDERS FUTURE VISION (ESG)
Mediclinic listens carefully to how The Group provides care in a world oal 5: To strengthen our
G
position as the employer
stakeholders feel and what they want. that is being reshaped by evolving
of choice;
Strong relationships lie at the heart client needs, regulatory frameworks
of its ability to enhance the quality of and climate forces. This calls for a Goal 6: To grow in existing
markets and expand into new
life. By engaging on key issues, it not sustainable approach in everything it
markets; and
only ensures close cooperation and does, from the way it utilises natural
coordination with government and resources and engages with employees Goal 7: To achieve superior
long-term financial returns.
regulatory role players, it’s also able to to the type of investments it makes
PPPs and seize business opportunities and how it conducts business.
TRANSFORMATION DRIVERS
which expand its services, help it
achieve its strategic goals, and diversify Innovation
revenue streams.
FINANCE Sustainable development
Mediclinic has a strong financial
Read more in the 2020 Annual Report
profile, supported by an extensive at annualreport.mediclinic.com.
property portfolio. The Group
has good access to capital and a EXPERTISE YOU CAN TRUST
disciplined capital allocation approach.
Note
1
Score negatively impacted by Hirslanden
experiencing an interruption in surveying.
MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORT 9INTRODUCTION CONTINUED
ABOUT SUSTAINABLE
DEVELOPMENT AT MEDICLINIC
We are committed to ensure that every day we improve sustainability by
managing our resources responsibly and efficiently to the benefit of our
stakeholders and the environment. – Mediclinic sustainable development mission statement
MANAGEMENT
Guided by its purpose of enhancing the quality of life and the Mediclinic Group Strategy, the Company has formalised
a Sustainable Development Strategy that sets out its commitment to sustainable growth through the best use of its
exceptional knowledge base and world-class infrastructure.
By following a holistic approach, the Group balances its financial returns with its ethical responsibility towards its
stakeholders, as described from page 12 of this Report, and the planet.
IN OUR BEHAVIOUR WE ARE:
Client Trusting and Patient safety Performance Team
centered respectful focused driven orientated
The Group aims to embed high ethical standards and responsible business View the Group’s Code of Business
practices in the Company through its corporate values, principles and policies, Conduct and Ethics (‘Ethics Code’),
which are available in the business languages observed by the divisions – Sustainable Development Policy
German and French at Hirslanden, and English at Mediclinic Southern Africa and Environmental Policy in the
and Mediclinic Middle East. The policies are reviewed annually by the Clinical ‘Governance’ section of the Group’s
Performance and Sustainability Committee, with recommendations to the website.
Board as part of the Company’s annual policy review process.
The Group complies with all relevant legislation, regulations, accepted standards and codes. Regulatory compliance risk
is a focus area of integral risk management across the Group. Satisfactory progress was made against the three-year
compliance monitoring programme that was developed, with no major findings or weaknesses identified. There is an
ongoing drive to increase the independent assurance of key compliance risks.
Comprehensive information on the Group’s risk management approach, principal risks and uncertainties, and compliance
management is included in the report on Risk management, principal risks and uncertainties in the 2020 Annual Report.
GOVERNANCE STRUCTURES
In its pursuit of corporate responsibility, the Board of Directors is supported by various committees.
Focus area Committee Outcome
Monitoring the sustainable Committee’s role, composition
development performance of the Clinical Performance and and activities included in the
Group. Sustainability Committee 2020 Annual Report.
Monitoring the Group’s clinical Comprehensive information on the
performance in order to promote Group’s clinical performance included
a culture of excellence in patient Clinical Performance and in the 2020 Clinical Services Report
safety, quality of care and Sustainability Committee Committee’s role, composition
client experience. and activities included in the
2020 Annual Report.
Reviewing the principal risks of Committee’s role, composition
the Group, including those related to Audit and Risk Committee and activities included in the
material sustainability issues 2020 Annual Report.
The Group Chief Corporate Services Officer, Gert Hattingh, is the most senior executive manager responsible for
coordinating sustainable development throughout the Group.
10 MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORTSUSTAINABILITY IN OBJECTS
By sourcing locally Through its partnership Klinik Hirslanden has The neonatal critical
produced food, such with Une Chance, Un entered into a three- care unit at Mediclinic
as this artichoke grown Coeur Foundation, year sponsorship Hoogland in South Africa
within 8km of the hospital, Switzerland’s Hirslanden commitment with Pink boasts this bright and
the kitchen of Hirslanden Clinique Cecil provides Ribbon Switzerland, an cheerful linen thanks
Clinique La Colline in surgical expertise and organisation that raises to the talents of Beulah
Geneva, Switzerland, medical care to transform funds for breast cancer Blignaut, a professional
ensures that transport the lives of young adults projects and research. nurse in the unit. Her social
routes are as short as with heart disease from With one in eight women commitment doesn’t keep
possible, local producers disadvantaged countries. facing the diagnosis office hours – she made
are supported and in their lifetime, the the bedding while on
seasonal cuisine is served. sponsorship will have leave.
far-reaching impact.
Every department at Mediclinic Middle East’s Corporate Office has its own office mug,
chosen in an intradepartmental design competition. As a result, the division could
remove all single use plastic cups from coffee machines in the Corporate Office.
Synonymous with the Why hand out numerous As a result of the With the upgrade of air
surrounding countryside, business cards when expansion project, handling units in operating
50 young poplar trees there’s an electronic Mediclinic Airport Road theatres, Mediclinic
grace the grounds of solution? To reduce paper in Abu Dhabi (UAE) has Brits in South Africa can
South Africa’s Mediclinic waste, Mediclinic Middle grown much bigger. reduce its energy use
Hoogland through the East is using QR codes to The solution? Electric on these by 30%. During
efforts of pharmacist share electronic business golf carts that transport afterhours (20:00–05:00),
assistant Charlene Jonck. cards. From April 2020 patients and goods across sleep mode relaxes the
Jonck and her husband onwards, this initiative is campus, a convenient and stringent temperature
raised the saplings to being rolled out across the eco-friendly option. In one from 16°C to 23°C, which
replace trees felled during Group. month, 9 000 patients uses less energy but
the installation of solar were transported. maintains infection control
panels. parameters.
MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORT 11STAKEHOLDERS
Strong relationships with stakeholders lie at the heart of the Group’s
ability to enhance the quality of life. By engaging on key issues,
Mediclinic remains accountable to its stakeholders and actively realises
its position as a leading international provider of private healthcare.
CLIENTS
Mediclinic will be the partner
of choice that people trust for
all their healthcare needs.
EMPLOYEES AND
COMMUNITIES POTENTIAL APPLICANTS
Mediclinic will invest in and Mediclinic will strengthen
support the sustainable its position as the
development of communities employer of choice.
that surround its operations.
GOVERNMENTS Mediclinic will comply with all legislative and
regulatory requirements, and constructively
AND AUTHORITIES collaborate with the authorities on matters
of regional and national importance.
12 MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORTINDUSTRY INDUSTRY
ASSOCIATIONS PARTNERS
Mediclinic will Mediclinic will form
participate in national partnerships to ensure
conversations about it expands across the
healthcare. continuum of care.
HEALTHCARE
INSURERS
Mediclinic will partner with this
stakeholder group to ensure it
provides cost-effective, quality
INVESTORS
care and outstanding client Mediclinic will grow in existing
experiences. markets and expand into new markets;
and achieve long-term superior
financial returns.
MEDIA
Mediclinic will MEDICAL
communicate
openly and
PRACTITIONERS SUPPLIERS
proactively, Mediclinic will provide the Mediclinic will
and report quality infrastructure and responsibly obtain
transparently. support needed to meet their products and services
clinical aims. of the highest quality.
The Board’s engagement with stakeholders
is reported on in the Corporate Governance
Statement in the 2020 Annual Report.
MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORT 13SECTION HEADING
STAKEHOLDERS CONTINUED
The wellbeing of the Group’s clients forms the foundation
of the business with Mediclinic’s core purpose being to
CLIENTS enhance the quality of life.
WHAT MATTERS TO THEM MEDICLINIC’S RESPONSE
They can trust Mediclinic to deliver The client is entrenched in three of Mediclinic’s organisational
quality, safe and cost-effective values: being client centred, trusting and respectful, and patient
healthcare by means of world-class safety focused.
facilities and technology while ensuring
the best possible client experience and Putting Patients First remains a key strategic objective for the
protecting personal data. Group. Mediclinic continues to invest in its people, clinical facilities
and technology.
HOW MEDICLINIC ENGAGES
Hirslanden Privé and Hirslanden Préférence programmes offer premium
• Press Ganey® patient experience
patient experience offerings to insured and semi-insured clients.
index surveys
• Disclosure of clinical performance
Private patient fixed fees is one of the alternative reimbursement
results
models established by Mediclinic Southern Africa to offer patients
• Systematic patient rounds during
greater choice and access to its facilities and services.
hospital stay
• 24-hour helplines
To continually improve access and affordability, Mediclinic conducts
• Health awareness days
tariff negotiations with insurers in a fair and transparent manner;
• Brochures and magazines
expands facilities based on need; pursues joint initiatives with
• Websites and blogs offering
government; seeks partnerships with healthcare providers that
health-related information
complement its services; and actively participates in healthcare reform.
• Social media
• Client alliance programmes
Patient experience programmes focus on improved caregiver empathy
and communication, intentional rounding, food service processes that
enhance patient experience and safety, and effective management of
complaints.
The Group Data Privacy project continuously improves privacy and
data protection measures and ensures compliance with applicable data
privacy legislation.
Patient or client?
I carefully considered the nature of Spotlight on patient surveys
the relationship between Mediclinic No fewer than 68 000 patient surveys were collected in 2019.
and those who make use of our Mediclinic benchmarks and publicly reports on patient experience
services within an evolving at divisional level through Press Ganey®, an internationally
healthcare landscape. A patient is a recognised provider of patient experience measurement. Patients
person receiving medical care; a are surveyed after discharge and this valuable feedback helps
client is a person who receives Mediclinic better understand patient needs and adapt care
advice. The latter implies a level of services accordingly. The survey includes focused priorities
trust and a long-term relationship to ensure quality improvement initiatives in appropriate areas.
that extends beyond mere treatment. A medical practice survey is currently conducted at
We want our patients to interact with Mediclinic Middle East outpatient clinics while ambulatory
Mediclinic beyond the conventional and emergency centre surveys will be added for all divisions
treatment process, rather as a client in 2020. In addition, Hirslanden must comply with the survey of
who turns to us to enhance their the Swiss National Association for Quality Development ANQ.
quality of life.
Dr Ronnie van der Merwe, Find more information on patient experience in the
Group Chief Executive Officer 2020 Clinical Services Report.
14 MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORTMediclinic is committed to growing its established relations
with the communities in which it operates and follows an
approach of mutual understanding, trust and reliability.
Significant investments are made annually towards
COMMUNITIES healthcare and education in these communities.
WHAT MATTERS TO THEM MEDICLINIC’S RESPONSE
Development and upliftment of Building stakeholder trust (in particular relating to training and
communities within the Group’s development) is Material issue 2 for the Group – refer to pages 36–65.
ambit and improved health outcomes
through greater awareness, better Being an ethical and responsible corporate citizen is Material issue 3
public healthcare training and – read more on pages 66–70.
pro bono procedures.
Healthcare awareness campaigns are hosted throughout the year.
HOW MEDICLINIC ENGAGES
Alleviation of surgical backlogs in South Africa through a
• Corporate social responsibility
Memorandum of Understanding with provincial Departments of Health.
(‘CSR’) initiatives
To date more than 400 life-changing surgical procedures have been
• Supporting employee volunteer
performed.
initiatives
• Participation at national level in
Long-standing partnership with Mohammed Bin Rashid University
health training and education
for Health Sciences (‘MBRU’) in the UAE, which includes the training
• Public-private initiatives and joint
of medical students. During the period under review, 49 fourth-year
ventures at Hirslanden, Mediclinic
students commenced their clinical clerkships at Mediclinic Middle East
Southern Africa and Mediclinic
facilities in Dubai.
Middle East
• Participation in the Public Health
Enhancement Fund (‘PHEF’) in
South Africa
MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORT 15SECTION HEADING
STAKEHOLDERS CONTINUED
EMPLOYEES
The Group’s employees are a highly valued asset; their
AND expertise, trust and respect are paramount to Mediclinic’s
POTENTIAL success. The shortage of doctors, nurses and skilled
APPLICANTS employees means recruitment and retention are key issues.
WHAT MATTERS TO THEM MEDICLINIC’S RESPONSE
Recognition, flexible work environment, Building stakeholder trust is Material issue 2 for the Group. Refer
competitive remuneration and to pages 42–50 for more on employee recruitment and retention,
employment in an ethical, safe employee development and training, remuneration, and employee
and fair working environment, satisfaction and engagement.
with opportunities for training and
development. Market-related salaries and benefits are offered to employees based
on the principles of internal equity, external equity and affordability.
HOW MEDICLINIC ENGAGES
Your Voice employee engagement surveys are conducted annually
• Annual Gallup® employee
across all divisions through Gallup®, an internationally recognised
engagement surveys
service provider. Through the surveys the Group measures levels of
• Training and development
engagement, identifies gaps at a departmental level, and supports line
• Growth opportunities
managers to implement action plans to address concerns.
• Intranet and social media
• Newsflashes and regular electronic
Through training and development opportunities Mediclinic
updates
enhances the skill-set of its employees, thereby empowering the entire
• Performance reviews and formal
organisation and unlocking individual potential.
recognition
• Leadership video conferences and
roadshows
• Employee wellness programmes
GLOBAL SHORTAGE
• Magazines and newsletters
Unwavering demand for healthcare services creates a severe
• Non-executive director for
shortage of skilled industry professionals
workforce engagement
80 million
GLOBAL
HEALTHCARE
WORKFORCE
The WHO projected that global demand for healthcare
workers will reach 80 million in 2030, with supply only
reaching 65 million. The world will be short of 15 million
healthcare workers by 20301.
NURSES COMPRISE HALF THE GLOBAL
HEALTHCARE WORKFORCE2.
Practising nurses per 1 000 population
in 2017 or nearest year:
Switzerland3 South Africa4 UAE5
17.0:1 000 4.94:1 000 5.5:1 000
Notes
1
‘Global Health Workforce Labor Market Projections for 2030’, 2017 Human Resources
for Health.
2
‘2018 update, Global Health Workforce Statistics’, World Health Organization.
3
Eidgenössisches Departement des Innern, Bundesamt für Statistik, September 2019.
4
‘Geographical Distribution of Nursing Manpower vs Total Population 2018’, South
African Nursing Council.
5
2017 Statistics, Federal Statistics and Competitive Authority of the UAE.
16 MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORTMediclinic’s business model relies on total compliance
GOVERNMENTS with all legislative and regulatory requirements. The Group
AND engages at all levels of government as part of normal
AUTHORITIES business practices.
WHAT MATTERS TO THEM MEDICLINIC’S RESPONSE
Compliance with healthcare legislation Regulatory developments, particularly regarding tariffs, have been
and regulations, participation in a defining feature of the year under review. An overview of the
initiatives and collaboration on issues regulatory environment of each division is provided in the Divisional
such as skills shortages and the cost of Reports included in the 2020 Annual Report.
private healthcare. Affordable access
to quality healthcare. No financial assistance was received from the respective governments
by any of the Group’s divisions.
HOW MEDICLINIC ENGAGES
Political donations are prohibited in terms of the Ethics Code, unless
• Regular meetings
pre-approved by the Board or Group Executive Committee. Hirslanden
• Participation in conferences
did, however, effect payments to a number of political bodies in
and seminars
Switzerland for campaigns that were of interest to the business.
• Representation on industry bodies
Contributing to political campaigns through third-party contributions
and government boards
is a standard practice in Switzerland. These contributions are not
• Participation in PPPs to enable
considered political payments as contemplated in Part 14 of the
healthcare, training and research
UK Companies Act, as they are not made to the political parties within
the scope of such act. Refer to the Corporate Governance Statement
in the 2020 Annual Report.
Participation in various official initiatives – Hirslanden: PPPs with
Kantonspital Baselland and the University Hospitals of Geneva.
Mediclinic Southern Africa: Presidential Health Summit, Public-Private
Growth Initiative, CSR commitments, working groups on health
Information pertaining technology regulations and drafting of the revised 2030 Human
to the planned National Resources for Health Strategy.
Health Insurance in South
Mediclinic Middle East: Department of Health’s strategic advisory
Africa is monitored board in Abu Dhabi, electronic health record (‘EHR’) roll-out in Abu
closely. Dhabi, and strategic, clinical quality and price regulation committees.
South African healthcare industry developments
The Health Market Inquiry (‘HMI’), mendations with respect to Similarly, information pertaining
initiated by the Competition hospitals, medical practitioners to the planned National Health
Commission of South Africa in and healthcare insurers, including Insurance in South Africa is
2013, published its final findings proposals to address the monitored closely. Mediclinic has
and recommendations in regulatory deficiencies affecting made written submissions to the
September 2019. During the the medical scheme environment, National Assembly Portfolio
inquiry, Mediclinic made to measure and report on health Committee on Health in response
numerous submissions and outcomes in a standardised and to the National Insurance Bill
presentations on appropriate and defined manner, and to published in August 2019.
accurate information that can be encourage innovation in Mediclinic will continue to engage
used to analyse the cost and reimbursement models. Mediclinic around developments as the Bill
competitive dynamics of private will monitor and engage with any is discussed and debated during
healthcare. The HMI’s final developments stemming from the the parliamentary legislative
report proposed several recom- HMI’s final recommendations. process.
MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORT 17SECTION HEADING
STAKEHOLDERS CONTINUED
All role players in healthcare funding, such as the medical
insurance companies and schemes, administrators and
managed care companies, play a key role in Mediclinic’s
HEALTHCARE business, with privately insured patients remaining the
INSURERS Group’s largest client base.
WHAT MATTERS TO THEM MEDICLINIC’S RESPONSE
A service that provides quality care The Group’s clinical governance and performance is covered in
while efficiently managing cost. detail in the 2020 Clinical Services Report. In terms of quality, patient
Integrated clinical services are prized safety and client experience, Mediclinic shares relevant studies and
and hospital network arrangements information to address healthcare funder concerns.
actively pursued. Regulations
governing healthcare provider price Transforming from an infrastructure provider to a healthcare systems
exist in Switzerland and the UAE, and provider is a key strategic goal for the Group. See Strategy,
pay-for-quality initiatives are planned goals and progress included in the 2020 Annual Report.
for Dubai and Abu Dhabi.
At Hirslanden, a chapter of the operations committee is tasked with
'cradle-to-grave traceability'. It meets every second week to ensure
HOW MEDICLINIC ENGAGES compliance standardisation in hospitals. Due to potential for cost-
• Regular meetings regarding possible savings, specialist groups in cardiology and orthopaedics meet twice
cost savings, clinical quality and annually to review standardisation of specific implants.
healthcare delivery improvements
• Annual tariff negotiations in a fair At Mediclinic Southern Africa, cost efficiency is proactively measured
and transparent manner by benchmarking doctors against peers for similar procedures and
diagnoses. Doctors receive feedback every three months; hospital
management has access to a live dashboard and actively intervenes
where outliers are identified.
The Clinical Utilisation Committee of Mediclinic Middle East monitors
utilisation trends by medical practitioners against peer benchmarks,
both proactively and in response to queries by insurers. The success
of the committee’s work during the reporting period is evidenced by
positive feedback from both the Abu Dhabi regulators and healthcare
funder Daman.
Criteria for Centres of Excellence in Abu Dhabi are being established
to ensure minimum case volumes per unit. Mediclinic Middle East is
actively involved in the consultation process.
Care Expert aims to
align healthcare Care Expert making a difference
This integrated care product of Mediclinic Southern Africa drives
providers more closely
value by further optimising overall hospital efficiency and clinical
and transform from quality. Care Expert aims to align healthcare providers more
a fee-for-service closely and transform from a fee-for-service environment to a
environment to a value- value-based model of care. Hip and knee replacement surgeries
are the first of the Care Expert products that have been
based model of care. successfully contracted with an increased number of key
stakeholders who have agreed to participate, and who saw an
increased benefit in the coordination of care in the reporting
period.
18 MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORTEngagement with key stakeholders via an industry body
could in certain instances be more effective than individual
INDUSTRY representation. Mediclinic leverages these associations to
ASSOCIATIONS ensure its active participation in national conversations.
WHAT MATTERS TO THEM MEDICLINIC’S RESPONSE
Staying abreast of legislation and Hirslanden plays an active role in shaping the Swiss hospital industry
regulations that affect the healthcare as well as associated legislation and regulation through its industry
industry and keeping the public association memberships. It is also represented in the Sciana Health
informed about challenges facing Leaders Network in Europe.
private healthcare.
Mediclinic Southern Africa keeps the public informed through its
Specific issues in Switzerland: day membership of the Hospital Association of South Africa, which ensures
case surgery initiatives; regulations that public information is accurate and thoroughly investigated by
on medical equipment; minimum credible independent specialists.
case numbers for physicians;
minimum quotas for basic insured
patients; decline of privately insured
patients; involvement of authorities in
supplementary insurance contracts; and
stricter regulations as of 1 January 2020
on integrity and transparency in the
therapeutic products sector.
HOW MEDICLINIC ENGAGES
• Membership of industry associations
and representation on governing
bodies
• Participation in research
commissioned by associations
• Participation in conferences
CLINIQUE DES GRANGETTES
Partnerships, joint ventures and cooperations with other
leading healthcare providers that complement Mediclinic’s
INDUSTRY services will enable the Group to become an integrated
PARTNERS healthcare provider across the continuum of care.
WHAT MATTERS TO THEM MEDICLINIC’S RESPONSE
Cultural alignment and an Mediclinic has a philosophy of taking long-term growth decisions that
understanding of respective strengths support its core business and future positioning.
and weaknesses. A comprehensive and
objective understanding of operations Building innovative care delivery models is an active focus for the
is crucial, as are well-defined and Group to ensure that appropriate and affordable care settings are
mutually beneficial operational developed in line with industry trends and regulatory requirements.
and financial frameworks. These
partnerships require collaboration in While property ownership drives operational and financial benefits and
developing strategic plans to deliver is relevant for most of the Group’s acute care hospitals, the approach
long-term future growth opportunities. to this remains flexible as Mediclinic looks at expanding across the
continuum of care.
HOW MEDICLINIC ENGAGES
• Direct engagement based on
Partnerships in practice
industry knowledge and market
Established relationships and investments include: Medbase and
reputations
Hirslanden collaborating in Switzerland to pool their expertise in
• Cooperation and PPPs
outpatient and inpatient services; Mediclinic Southern Africa
• Introductions through advisors
investing in the Intercare Group, consisting of day case clinics,
• Industry conferences and events
sub-acute facilities and specialised hospitals; and Mediclinic
Middle East partnering with Bourn Hall International MENA Ltd
to offer specialist fertility services.
MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORT 19SECTION HEADING
STAKEHOLDERS CONTINUED
As the owners and providers of equity and debt capital to
the Group, investors are an important stakeholder. The
established investor relations programme involves regular
and transparent communication with investors while
ensuring the Board understands the views of investors on
INVESTORS all relevant matters.
WHAT MATTERS TO THEM MEDICLINIC’S RESPONSE
Profitable growth and financial The Group’s purpose, vision, values and strategy are detailed in the
sustainability, with diverse opportunities Strategic Report in the 2020 Annual Report.
for long-term value creation. Investors
need to understand the Group’s The Company’s long-term value creation is defined in the Investment
strategic and ESG goals, as well as case included in the 2020 Annual Report.
the regulatory environment, financial
performance and operational drivers of The Group’s financial performance is summarised in the Group Chief
each division. Financial Officer’s Report included in the 2020 Annual Report.
HOW MEDICLINIC ENGAGES The divisions’ financial and operational performance is detailed in the
• Investor Relations department Divisional Reports included in the 2020 Annual Report.
• Shareholder annual general meetings
• Financial results reporting and The Group’s ESG strategy is discussed in detail in this Report and
presentations summarised in the Sustainable development overview included in the
• Investor meetings, roadshows and 2020 Annual Report.
conferences
• Operational site visits Representation on the Company’s Board of Directors for Remgro Ltd, as
• Stock exchange announcements a principal shareholder, in terms of a relationship agreement. Refer to the
• Sell-side analyst and salesforce Corporate Governance Statement included in the 2020 Annual Report.
meetings
• Corporate website The Group’s shareholder engagement strategy is referred to in the
Corporate Governance Statement included in the 2020 Annual Report.
Directors’ remuneration and the alignment of incentives with shareholder
experience and long-term value creation are referenced in detail in the
Remuneration Committee Report in the 2020 Annual Report.
The media acts as an intermediary between Mediclinic and its
stakeholders on Company and industry developments, and
MEDIA assists to build and sustain a professional Company reputation.
WHAT MATTERS TO THEM MEDICLINIC’S RESPONSE
Engagement, transparency and access Dedicated communication strategies have been developed for major
to accurate information. industry affairs issues.
Media events were held during the reporting period by each division.
HOW MEDICLINIC ENGAGES
• Media releases
The Future of Healthcare blog is an integral part of Mediclinic Southern
• Press conferences
Africa’s communication strategy. By way of media statements, it
• Financial results reporting and
demonstrates this division’s expertise and addresses topics such as the
presentations
National Health Insurance and innovative treatments and procedures
• Interviews and responses to media
performed at the division’s facilities.
enquiries
• Paid advertisements
• Monitoring industry-related news
and proactive response
• Social media
• The Future of Healthcare blog
20 MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORTAny initiative to improve the quality of clinical care needs
MEDICAL the support and engagement of the treating medical
PRACTITIONERS practitioners.
WHAT MATTERS TO THEM MEDICLINIC’S RESPONSE
Quality facilities, equipment and nursing The referral network enables Group representatives to regularly
care to ensure patient safety and meet with medical practitioners and Mediclinic employees to discuss
satisfaction. Involvement in strategic their needs and build the relationship between the hospital and the
clinical issues and the implementation supporting specialists.
of EHRs as well as opportunities for
continued professional development. Quality is a key priority, with a continued focus on clinical quality,
Adaptability to meet the needs of an provision and maintenance of high-quality hospital infrastructure, and
evolving healthcare industry. employee development and training.
Building stakeholder trust is Material issue 2 for the Group. Refer to
HOW MEDICLINIC ENGAGES
pages 36–65 and the 2020 Clinical Services Report.
• Regular meetings
• Participation in hospital clinical
committees
• Continuous professional education Encoding commitments
events Medical practitioner-specific compacts enable hospitals and
• Electronic newsletters practitioners to move towards a shared goal. It is an agreement
• Networking and know-how exchange between Mediclinic and a specific medical practitioner that
events at Hirslanden illustrates the mutually beneficial expectations and commitments.
• Dedicated medical practitioner
portals at Hirslanden and Mediclinic
Southern Africa
• Medical practitioner participation
in hospital boards
• Biannual engagement events at
Mediclinic Middle East
• Annual Research Day at
Mediclinic Middle East
MEDICLINIC INTERNATIONAL PLC
2020 SUSTAINABLE DEVELOPMENT REPORT 21SECTION HEADING
STAKEHOLDERS CONTINUED
Mediclinic believes in building long-term relationships of
mutual trust and respect with suitable suppliers. The
Group relies on its suppliers to deliver products and
services of the highest quality at the right time and price
while complying with regulations, and providing the
SUPPLIERS necessary training and support.
WHAT MATTERS TO THEM MEDICLINIC’S RESPONSE
Fair and transparent negotiations, and Effective procurement involves centralising to improve efficiency and
timeous payment for products and cost-effectiveness while formalising processes for tenders, contracting
services rendered. and preferred supplier agreements. At Mediclinic Southern Africa,
discussions take place to improve supplier scorecards for broad-based
black economic empowerment (‘B-BBEE’).
HOW MEDICLINIC ENGAGES
• Regular meetings and business
A Group Purchasing Organisation (‘GPO’) supports global sourcing
reviews
and creation of more cost-effective supply chains through direct
• Contract negotiations and
imports of selected surgical and consumable products and conducts
management post-signature
a selection of site visits to audit suppliers' compliance to Mediclinic's
• Electronic product approval processes
ethical codes and business practices.
• Product demonstrations and
evaluations
The implementation of an e-procurement solution to leverage
• Training on product specifications
benefits offered by digitalisation and automation.
• Attendance at trade fairs
• Factory visits
Rationalising the number of suppliers to enable growth with selected
• Annual Modern Slavery Act due
key partners and thereby strengthen negotiations.
diligence questionnaire
Modern slavery reviews with a selection of suppliers to confirm that
the necessary measures are in place to prevent modern slavery and
human rights violations in their organisations. Although the risk of
modern slavery in the supply chain is minimal, key manufacturing
facilities are visited regularly to verify compliance. View the Company’s
Modern Slavery and Human Trafficking Statement on the Group’s
website.
Health technology assessments are required for high-value
investments or for implementation of new technologies – refer to the
2020 Clinical Services Report.
22 MEDICLINIC INTERNATIONAL PLC
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