2012 Annual Report

THE FACTS

  • Ascot - 71% ownership by Abano; 29% by shareholder radiologists
  • Insight – 80% ownership by Abano; 20% shareholder radiologists
  • Growth Strategy
  • Five Auckland clinics with a sixth clinic in development
  • 79 staff including 23 clinical specialists

THE YEAR IN REVIEW

Overall, revenue for Ascot Radiology increased due to both higher patient numbers and a rise in higher value scanning.  There is also increasing demand for breast imaging, as specialist referrers become more aware of the benefits of MRI scanning versus traditional mammography.

The obstetric ultrasound market is competitive, with a variety of providers offering different levels of quality and experience. While every pregnant women needs to have obstetric scanning, it is their choice as to which provider they choose. The economic climate over the past few years has seen increasing pressure on the discretionary dollar, and some people are now opting for a cheaper, no frills service. Some radiology providers also use obstetric scanning as a loss leader to build their overall business base.

In FY12, Insight Radiology continued to offer a specialist, high end obstetric ultrasound offer. Clients receive expert clinical review, as well as access to the latest HD-LIVE 4D technology. This provides extremely clear, almost photographic quality images of the baby in the womb.

FY12 Highlights

  • Growth in demand for PET CT scanning
  • Increased revenue due to growth in patient numbers and higher value scanning
  • Announced greenfield development of new Millennium radiology clinic on Auckland’s North Shore
  • Replaced two older ultrasound machines at Insight Radiology with two HD-LIVE 4D machines
  • Continued to offer a high end obstetric ultrasound offer, despite a more competitive market and cost cutting by other providers.

LOOKING FORWARD

There are two primary focuses for FY13 – the opening of the Millennium clinic in the second quarter of the financial year; and to consolidate and build demand for the new technologies and services put in place over the past few years.

A lot of radiology business comes from specialist referrers and they are a very important customer group for the business. Although both radiology businesses have excellent reputations, it can be difficult to change referral patterns. Management are looking at building referrals by educating specialists as to the benefits and added value offered by Ascot and Insight’s service and leading edge technology.

The Ascot team will continue to build the patient base and demand for PET CT scanning. Auckland DHB currently splits its contracts between the two Auckland providers, however, a new contract is being negotiated. Management believe  that the current two-provider model should continue, as it provides patients with better access to scans, as well as continuity should one scanner be out of service.  Southern Cross is the biggest insurance provider in the country, and currently has limited approval policy for PET CT scans.  As funders become more aware of the value of this technology, it is hoped that access will be less restrictive.

Goals FY13

  • Build the PET CT client referrer and patient base
  • Complete the commissioning of operations at new Millennium clinic
  • Merge the Insight and Ascot practices, ensuring we keep the best of both businesses and that synergies are gained
  • Build on all current offerings, and improve services and internal structures across the business
  • Continue to build on and strengthen existing and new relationships with specialist referrers
  • Continue to look at innovative ways to deliver a quality obstetric ultrasound experience to a wider market.