Latest news with #Levrat
IOL News
25-04-2025
- Business
- IOL News
Remgro is freezing hiring and offering early retirements at Mediclinic as it shifts towards AI to boost efficiency
Mediclinic's share price rose 6.6 percent yesterday after it said it could realise R5.6 billion from the offer by Australian firm Ramsay Property Group to acquire Mediclinic's 29.9 percent stake in the UK's Spire Healthcare Group. Photo: Simphiwe Mbokazi African News Agency (ANA) Remgro has reportedly introduced a hiring freeze and early retirement offers at Mediclinic as part of efforts to streamline operations and integrate AI to boost efficiency. The decision was confirmed during Remgro's 2025 Capital Markets Day, according to MyBroadband. Mediclinic's Chief Operating Officer, Bertrand Levrat, explained that the measures aim to reduce administrative costs across the group. Mediclinic stated that these cost-cutting measures are expected to result in savings of up to R2 billion by 2027. However, the company clarified that the hiring freeze will not affect frontline staff, including nurses and doctors. 'For SA-based corporate office personnel and shared services staff, we have offered an early retirement package. These will enable us to reduce the administrative costs of the group,' Levrat said. According to Daily Maverick, the group stressed that no specific directive has been given for AI to replace full-time employees. 'This transformation includes the realignment of our corporate office structures, reinforcing our ability to support our facilities in providing exceptional care to our patients,' Levrat added. 'This evolution will strengthen our organisation and ensure we remain competitive, sustainable, and best positioned to meet the needs of our patients, clients, and stakeholders.' Mediclinic is one of the country's largest private hospital groups, employing more than 15,000 people across Southern Africa, with a significant proportion of employees based in South Africa. The move could exacerbate the country's high unemployment rate. According to the latest data from Statistics South Africa, the unemployment rate stood at 31.9% in the fourth quarter of 2024. Young people are particularly affected, with those aged 15-24 facing the highest unemployment rate at 59.6%. The unemployment rate for those aged 25-34 is 39.4%, contributing to an overall youth unemployment rate of 45.5%. IOL previously reported last month that Blade Nzimande, Minister of Science, Technology and Innovation, addressed both the opportunities and risks posed by AI, particularly in a country grappling with high unemployment. The minister also called for deliberate policy interventions to ensure technology serves social justice, inclusivity, and equality. "Major advances in science and technology have been transforming many aspects of the global economy and bringing with it huge disruptions in labour markets," Nzimande said. IOL Business
The South African
25-04-2025
- Business
- The South African
Mediclinic shifts focus to AI amid hiring freeze
Remgro-owned Mediclinic is reshaping its operations by embracing artificial intelligence, resulting in a hiring freeze and early retirement offers. According to MyBroadband , Mediclinic owner Remgro has informed investors that it has frozen all new recruitment and offered a voluntary early retirement package to corporate office and shared service personnel as it enhances its operating model. This was revealed during Remgro's 2025 Capital Markets Day. The improved operating model will leverage artificial intelligence (AI) to strengthen Mediclinic's core business by focusing on operational efficiency. Mediclinic's chief operating officer, Bertrand Levrat confirmed that the hiring freeze and early retirement offer will help cut administrative costs. 'For SA-based corporate office people and shared services people, we have offered early retirement package. These will enable us to reduce the administrative costs of the group,' he said. Mediclinic said the strategy could help the firm save nearly R2 billion by 2027. The company emphasised that the hiring freeze does not apply to nurses and doctors. The company said its South African business was included in implementing its new operating model, and formed part of Mediclinic's broader strategy to leverage AI and automation. Mediclinic highlighted several successful examples of the adoption of AI and automation in the medical field: An AI model for scheduling appointments with doctors in AI has helped improve operational efficiency through reduced standby time and resulted in an additional 100 bookings per day at Mediclinic Middle East. The implementation of an AI agent to procure clinical documentation is saving man-hours, resulting in cost savings in staff time. The automation of clinical coding through AI is showing the potential for increased efficiency and accuracy in billing. AI agents deployed in revenue cycle management are showing the potential for cost savings in administrative processes. Mediclinic has started deploying AI models to read and interpret radiology, improving radiologists' efficiency. Mediclinic has appointed a dedicated team, operating under its chief data officer, to lead the implementation of its artificial intelligence, data, and automation strategy. This team is responsible for setting up governance structures, processes, and technology frameworks to support the company's digital transformation. As part of this strategy, Mediclinic will also invest in continuous AI-related training and upskilling for its workforce. According to Daily Maverick , Levrat emphasised that Mediclinic will not use AI to replace full-time employees, following early reports on the company's plans. 'This transformation includes the realignment of our corporate office structures, reinforcing our ability to support our facilities in providing exceptional care to our patients,' Levrat said. The announcement comes amid growing concerns about unemployment in South Africa, particularly among young people. According to IOL , individuals aged 15 to 24 face an unemployment rate of 59.6%, while those aged 25 to 34 have a rate of 39.4%, contributing to a broader youth unemployment rate of 45.5%. In this context, Mediclinic's commitment to workforce development and retention, even as it adopts advanced technologies, marks a notable approach. Strong Financial Position Maintained During his Capital Markets Day presentation, Levrat emphasised that the private hospital firm isn't in financial trouble, but in a sound financial position. Looking at Mediclinic Southern Africa, revenue grew by 10% from $557 million (R10.3 billion) to $613 million (R11.4 billion), while operating profit increased by 15% to $76 million (R1.4 billion). Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
