Pause on NSW elective surgery weighs on Virtus Health's (ASX:VRT) financial outcome

Company News

by Lauren Evans

Due to the NSW Government suspending all non-elective surgery from January 10, Virtus Health (ASX:VRT) are unable to quantify the financial impact.

Across Virtus’ global clinics and hospitals, the current Omicron Covid-19 wave is presenting operational challenges with staff shortages, increased testing requirements and deferral of procedures.

Virtus said they are managing each of those challenges well and any deferred demand for services is expected to be recouped quickly, which has been the experience following previous Covid-19 waves.

The move was aimed to reduce the impacts of the new Covid-19 wave. However, suspension does not apply to procedures where patients are admitted and discharged on the same day. Therefore, the current direction does not restrict the provision of IVF or other services provided by Virtus in NSW.

Across the states, the Victorian Government has suspended all non-urgent elective surgery from January 12 for three months, while the Queensland Government has suspended all non-urgent elective surgery in public hospitals only.

Shares in Virtus Health (ASX:VRT) are trading 0.3 per cent higher at $6.68.  

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