Big increase in patient fees during the June quarter

GWEST Corporation is cutting its losses from higher revenues posted during the June quarter.

The medical outfit and real estate company based in Montego Bay managed to cut its losses by J$6 million during the quarter. As such, net losses for the period totalled J$10.76 million coming from the net loss of J$16.71 million posted during the comparable period in 2020.

No taxation was levied on the company during the quarter. Operating losses closed the June quarter at $1.29 million versus a loss of $7.94 million booked for the comparable period last year.

Revenues have been climbing, amounting to $30.80 million for the June quarter, an increase of 25 per cent when compared with the $24.16 million booked last year. According to the management of the Montego Bay listed company, “revenue was positively impacted by a 46 per cent increase in patient fees during the quarter relative to the corresponding quarter in the prior year”.

Increase in patient fees drove up revenues

The increase in patient fees was mainly due to the relaxing of COVID-19 related curfew restrictions resulting in a greater movement of the people and longer opening hours at our facilities. Additionally, lease income increased by 12 per cent over the corresponding quarter in the prior year as result of increase rental of lettable space.

The management of GWest Corporation reports that, “negotiations are ongoing with a prospective tenant for a lease of 5,000 sq.ft. of office space. We expect to complete these negotiations during the second quarter”.

Cost of sales for the period amounted to $8.84 million relative to the $6.03 million reported for the same period last year. As a result, gross profit increased by 17 per cent to $21.24 million relative to the $18.12 million for the corresponding period in 2020.

Containing administrative expenses

Administrative expenses were cut by 30 per cent to close the June quarter at $9.98 million. This was down from the $14.20 million booked in 2020.

Other operating expenses amounted to $19.20 million up 27 per cent from $15.07 million for the corresponding period in 2020. Finance cost for the period amounted to $9.53 million relative to $8.78 million booked for the comparable period in 2020.

As at June 30, 2021, total assets amounted to $1.67 billion, two per cent more than $1.63 billion the year prior. This was as a result of the increase in ‘Property and equipment’ which closed $337.19 million, up from the $229.35 million booked in 2020.

This was due to the “increase in investment related to the build-out of our surgery centre and in-patient unit,” as per GWEST. However, the movement was tempered by a decrease in ‘due from relative parties’ which totalled $54.61 million (2020: 97.46) and ‘Right of use assets’ which closed to $97.26 million (2020: $132.63 million).