The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

Unpaid medical bills owed by the Government to Doctors Hospital have decreased by more than $20m since the COVID-19 pandemic, strengthening its balance sheet as increased patient volumes and expanding clinical services produced stronger 2027 first quarter results.

Dennis Deveaux, the BISX-listed healthcare provider’s chief executive, said receivables owed by the Government, which once peaked at $29m, have now fallen to well below $10m, reflecting what he described as a healthier working relationship and more consistent payments.

"We have seen meaningful improvements in our receivable position with the Government coming out of COVID. At one point, our receivables with the Government stood at $29m. Through our financial statements, we will disclose that that number is now well below $10m and, if you exclude the Kidney Centre, I think it's below $4m,” he revealed.

For a private healthcare provider that relies on timely reimbursement for services delivered through government programmes, improved collections have significantly strengthened liquidity. While acknowledging that cash flow challenges remain within the public sector, Mr Deveaux said the relationship continues to improve.

"Overall, we view the relationship as quite positive, notwithstanding the liquidity challenges that often exist with the Government. We have all of the right conversations happening at all of the right levels, and there are regular drawdowns of the accounts receivables balance with the Government. Overall, we judge it to be healthy,” Mr Deveaux said.

The improved balance sheet comes as Doctors Hospital reported continued growth in patient activity during the first quarter that covers the three months to end-April 2026.

Kendra Sturrup, its chief financial officer, said net revenues increased 8.8 percent year-over-year and have continued tracking at approximately 8 percent through June.

"As it relates to our first quarter financial results, we have been able to realise an increase in our net revenues of approximately 8.8 percent, which we have seen has been sustained throughout this current period at about 8 percent,” she said.

Ms Sturrup said growth was driven by stronger clinical activity, particularly following the return of the hospital's cardiac catheterisation laboratory, together with increased inpatient admissions and patient days.

"This represents that our clinical programmes, such as our cath lab, as well as our increased patient days, have been able to realise profitable results for the operations," she added. 

The stronger operating performance translated into a sharp increase in profitability. "Our net income has increased from approximately $1.6m to about $4.8m. Our revenues for the first quarter also resulted in $36m in net patient revenues,” said Ms Sturrup.

She said emergency room visits, inpatient admissions and intensive care use all contributed to the stronger financial performance. At the same time, Ms Sturrup said the hospital continues to focus on balancing growth with affordability by offering payment options to patients requiring treatment.

"We do address the issue of access and affordability, and we are continuing to challenge our models so that patients have the opportunity to access our services and receive immediate treatment. We have worked very intimately with our patients and their families to ensure that we give care options as well as price options,” Ms Sturrup said.

Looking ahead, she said Doctors Hospital expects the momentum to continue throughout the remainder of the fiscal year that ends at the close of January 2027.

"For this fiscal year, we have projected eight to 10 percent in terms of an increase in revenue. As at the end of quarter one, we've been able to realise 8.8 percent and, up to June of this year, we're just at 8 percent,” Ms Sturrup said,

She added that those gains have also supported profitability. "Those targets also trickle down into our net income and our margins, and we have been able to secure an 11 percent profit margin in comparison to our budget,” the Doctors Hospital finance chief said.

As the hospital continues expanding clinical services and investing in infrastructure, she said management remains confident it can achieve its financial targets while continuing to improve patient care. "We are well within our capacity and sustaining the targets that we have set for ourselves for this fiscal period,” Ms Sturrup said.