Spire Healthcare Share News (SPI)

(Sharecast News) - Spire Healthcare said on Monday that it was withdrawing its 2020 guidance as it confirmed it will be making all of its hospitals available to the NHS to help during the coronavirus outbreak.
As part of its agreement with the NHS, the private hospital group will make available from 30 March all of its 35 hospitals in England for a minimum of two weeks and then on a rolling basis.

Spire will receive cost recovery for its services, including operating costs, overheads, use of assets, rent and interest less a deduction for any private elective care provided.

The company said it had decided to suspend certain procedures as of last Friday, including all non-urgent elective surgery for patients over the age of 70 and vulnerable patients with co-morbidities.

"The agreement with NHS England will provide Spire Healthcare with sufficient liquidity and financial stability during the Covid-19 outbreak to continue to provide outstanding personalised care to its patients. Given the lack of visibility on the length of contract, and on the potential volume of elective surgery we will receive afterwards, we are unable to determine the full financial impact at this stage.

"The Spire Healthcare board therefore believes it is prudent to withdraw the guidance for FY20 given on 5 March 2020. The agreement allows for sufficient notice to prepare for the resumption of private and NHS elective care in the normal manner once the Covid-19 peak has passed."

Spire said it should then be in a strong position to meet the demand arising from the period of elective suspension.