Durrant Pate/Contributor

Montego Bay-based medical and real estate outfit, Gwest Corporation, is facing several new and recurring challenges as it seeks to stabilise the business and bounce back to profitability

In delivering a subpar performance for the half-year ended September 30, Gwest has been impaired by delays in renewing its Ministry of Health and Wellness accreditation, which resulted in the medical centre being unable to offer certain medical procedures, which negatively impacted revenues. 

This is evident by the 19 per cent reduction in patient fees during the quarter. In addition, the passage of Hurricane Melissa over a month ago and the resultant slowdown in Jamaica’s tourism also negatively impacted operations, where the major disruption in economic activities from hotel closures and other business operations impacted the demand for private healthcare. 

In return, business at Gwest has slowed to a snail’s pace. CEO Wayne Gentles says it is likely that a more stable and long-term recovery may take some time, but the company is fortunate to have suffered only minor damage, while several of its tenants at its Fairview, Montego Bay facility suffered short-term disruptions, but overall normality should resume in the short term. This event created a loss of revenue immediately before and after the hurricane as a result of the closure of the facility, limited opening hours and severe disruptions to economic downturn economic activity, staff displacement and major disruption in services. 

Shortened opening hours 

However, within two weeks, Gwest was able to mobilise and start operations, albeit with shortened opening hours. This has resulted in the company being able to respond to customers’ and patients’ emergency and urgent care cases. 

Renewal and improvement in the new accreditation status from the Ministry of Health and Wellness (such as the ability to keep patients in an overnight facility for more than 24 hours following surgery) will also provide opportunities to improve our revenue-generating capacity. The management and Board of Gwest are continuing to pursue a strategy of revenue enhancement and cost containment as they remain committed to increasing shareholder value and responding to the urgent needs of the population of Western Jamaica, in particular.

Financial highlights

The results for the last quarter showed an operating loss of $0.43 million, down from $5.43 million in the prior year. However, the year-to-date operating profit was $7.37 million compared to the loss of $0.86 million in the previous six months. The company reported an overall net loss of $7.03 million for the quarter compared to an overall net loss of $3.83 million for the corresponding quarter ending September 30, 2024. 

For the year-to-date net loss was $6.44 million compared to a net loss of $19.51 million in 2024. Revenues for September amounted to $67.23 million, representing a decline of $3.47 million or 4.9% over the corresponding quarter in the prior year. For the year to date, September 30, revenues closed on $142.16 million, a $15.26 million or 12% increase over the prior six months. Lease income increased by 5% for the quarter and 5% for the year-to-date.

However, revenues were negatively impacted by a 19% reduction in patient fees during the quarter, mainly due to delays in renewing Gwest’s Health Ministry accreditation. Year-to-date income was positively impacted by an increase in Surgery and Urgent Care cases in Q1. The renewed and improved accreditation status was received effective October 14, 2025. Direct costs of $44.45 million were 66% of revenues for the quarter, compared to $45.39 million and 64% of revenues in the prior year. 

Balance sheet highlights

For the year to date, direct costs were 69.2% of revenues compared to 76.7% for the prior year. Finance costs declined for both the quarter and the six months year to date, due to amortisation of loan balances. Administrative Expenses for the quarter and year to date increased by 17.8% and 14.8% respectively. This was due to an increase in full-time staff and fewer sessional engagements. 

Total assets as at September 30, 2025, closed at $1.59 billion, reflecting a decline of $133 million compared to September 30, 2024, due to the sale of investment property during the period.