Company Structure and Economic Rationale Overview

What percentage of Mediclinic Southern Africa's shareholding does BGM hold?

What is the nominal share value for each economic benefit share in the clinic?

Who absorbs the losses if the MCRS clinics continue to incur financial losses?

What is the dividend policy of MCRS regarding profits?

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 one of the benefits cited for the Hospital regarding the MCRS structure?

What role do Doctor shareholders play in the MCRS clinic structure?

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?

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".

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.