ADVANCED HEALTH LIMITED - Voluntary operational update

Voluntary operational update

 ADVANCED HEALTH LIMITED
 (Incorporated in the Republic of South Africa)
 (Registration number 2013/059246/06)
 (“the Company” or “Advanced Health”)
 ISIN Code: ZAE000189049        JSE Code: AVL


  VOLUNTARY OPERATIONAL UPDATE


The board of directors and management of Advanced Health Ltd are delighted to report that the
group has made positive progress over the past few months.

The following noticeable improvements, which apply to our South African and Australian operations
are briefly highlighted:
- The number of patients treated for the five-month period ending November 2017 reflects an
    increase of 36% over those treated during the same period in the preceding year.
- The number of patients treated during November 2017 reflected an increase of 45% compared
    to November 2016.
- The number of patients treated during November 2017 compared to October 2017 reflects an
    increase of 17%.

Positive support voiced by medical schemes.
At the annual general meeting of the Day Hospital Association, held during October this year, various
medical schemes gave a clear indication that they are in favour of same day surgical procedures to
be performed in day hospitals. Indications are that further positive movements in support of day
hospitals will be implemented during the 2018 calendar year.

Managed care strategy.
In its most recent publication, the Council for Medical Schemes (CMS), incorporated the following
statement relating to the implementation of managed care strategies in South Africa:
         “……it is important for all parties involved to ensure that the intended goals and objectives
         of managed care are met at all times.
         Managed care services should provide the proper quality of care, which in turn
         will ensure that the provision of healthcare services is cost effective.”
Advanced Health, in association with our staff and partnering medical practitioners, are in support
of initiatives aimed at the enhancement of the quality of our services.

Objectives as expressed by the Health Market Inquiry (HMI) of the Competition Commission.
The provisional report relating to the investigation of the private healthcare industry in South Africa
was scheduled for publication by 30 November 2017. Due to certain concerns raised, mainly by the
large hospital groups the publication of the report has been postponed to the 30th April 2018.

We would like to emphasise and echo the HMI’s main objective which is to support a healthy
environment in terms of which the quality of care as well as the cost-effective service delivery enjoys
the highest priority in the South African healthcare industry.



Johannesburg
18 December 2017

Designated Advisors
Grindrod Bank Limited

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