Podcast
Questions and Answers
What percentage of Mediclinic Southern Africa's shareholding does BGM hold?
What percentage of Mediclinic Southern Africa's shareholding does BGM hold?
- 63%
- 79%
- 21% (correct)
- 30%
What is the nominal share value for each economic benefit share in the clinic?
What is the nominal share value for each economic benefit share in the clinic?
- R0.50
- R2.00
- R5.00
- R1.00 (correct)
Who absorbs the losses if the MCRS clinics continue to incur financial losses?
Who absorbs the losses if the MCRS clinics continue to incur financial losses?
- Doctors
- MCRS (correct)
- Hospitals
- BGM
What is the dividend policy of MCRS regarding profits?
What is the dividend policy of MCRS regarding profits?
How many economic benefit shares did the Hospital invest in MCRS?
How many economic benefit shares did the Hospital invest in MCRS?
What is the purpose of the capital acquired by MCRS for individual clinics?
What is the purpose of the capital acquired by MCRS for individual clinics?
What is one of the benefits cited for the Hospital regarding the MCRS structure?
What is one of the benefits cited for the Hospital regarding the MCRS structure?
What role do Doctor shareholders play in the MCRS clinic structure?
What role do Doctor shareholders play in the MCRS clinic structure?
What is indicated as a key goal of MCSA regarding care expansion?
What is indicated as a key goal of MCSA regarding care expansion?
Which group is involved in the decision-making process if significant losses are incurred?
Which group is involved in the decision-making process if significant losses are incurred?
Flashcards
Mediclinic Renal Services (MCRS)
Mediclinic Renal Services (MCRS)
A company specializing in renal services, owned primarily by Mediclinic Southern Africa (79%) and BGM (21%).
Economic Benefit Shares
Economic Benefit Shares
Special class shares in MCRS with no capital investment requirement, where losses are absorbed by MCRS, not the shareholders (doctors or hospitals).
Doctor/Hospital Partnership
Doctor/Hospital Partnership
Doctors and hospitals hold economic benefit shares in MCRS, vital for success due to referrals and support.
Capital Procurement
Capital Procurement
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Dividend Policy
Dividend Policy
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Shareholding Structure (MCRS)
Shareholding Structure (MCRS)
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Rationale for Economic Shares
Rationale for Economic Shares
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Selection of Doctor shareholders
Selection of Doctor shareholders
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Capital Requirements
Capital Requirements
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Study Notes
Company Structure
- Mediclinic Southern Africa holds 79% of ordinary shares, while BGM holds 21%. Previously the split was 70/30.
- Renal Clinic shares are of a special class, focusing on economic benefit. There are 100 shares issued.
- Doctors hold 20 shares, while the hospital or HIC holds 63.
- BGM holds 17 shares.
- No capital investment or working capital from hospitals or doctors is needed.
- Losses are absorbed by the MCRS, not doctors or hospitals.
- If losses continue, the MCRS board, in consultation with doctors and hospitals, decides the clinic's future.
- Doctor shareholders are selected by OE, HGM/hospital board, and renal management, then approved by the MCRS board.
Economic Rationale
- Doctors and hospitals are vital to the success of MCRS clinics.
- Doctor referrals to MCRS are crucial.
- Hospital support (HR, technical, doctor relationships) is also essential.
- The nominal share value is R1.00 per share. Clinics have a R0 value on the first day.
- Capital requirements range from R2 million to R15 million (depending on the size).
- MCRS supplies capital required.
- Doctors and hospitals don't contribute capital.
- MCRS buys the capital and leases it to individual clinics, with monthly expenses.
Financial Transactions
- Hospitals invest R63.00 for 63 economic benefit shares.
- Doctors invest R20.00 for 20 shares.
- When dividends are declared, they go to the hospital/HIC, BGM, and doctors holding shares.
- Dividend policy: 90% of profit is declared as dividends.
Benefits
- Hospitals receive 63% economic benefit.
- Rental income is generated in some cases.
- Increased patient volumes benefit hospitals, doctors, and renal clinics.
- MCSA's goal is to expand in the "continuum of care".
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Description
Explore the ownership structure and economic rationale behind Mediclinic Southern Africa's Renal Clinics. This quiz covers share distribution, stakeholder responsibilities, and the impact of doctor and hospital support on clinic success. Test your knowledge on how MCRS clinics operate and the financial implications for shareholders.
