Ramsay Health Care began with a single psychiatric hospital in Sydney in 1964 and grew into Australia’s largest private hospital operator. Here’s how it makes its money.
Ramsay Health Care is Australia’s largest private hospital operator, and one of the biggest health companies on the ASX.
It was founded by Paul Ramsay, who opened a psychiatric hospital in Sydney in 1964. It is based in Sydney, reports in Australian dollars, and its financial year ends on 30 June.
Hospitals
Ramsay runs more than 70 hospitals and day surgery clinics in Australia, offering surgery, mental health care and other treatments. It is paid mostly by private health insurers, with patients paying any gap, and also treats some public patients under contracts with state governments.
It also runs hospitals in the U.K., where it treats patients funded by the National Health Service and private patients.
Ramsay owns 52.8 per cent of Ramsay Santé, a large private hospital and clinic operator in France, Sweden, Norway, Denmark and Italy. Ramsay plans to demerge that stake, handing the shares directly to its own shareholders, so it can focus on Australia. Shareholders are due to vote on the plan in late November 2026.
Pressure on private hospitals
Private hospitals have been under financial strain since the pandemic, with higher wages and costs, more complex patients and shorter stays.
Hospital operators argue that private health insurers have not increased payments enough to keep up, and Ramsay has been in public disputes with some insurers over the rates they pay. Insurers argue they need to keep premiums affordable for members.
Some smaller private hospitals around Australia have closed.
The risks
The risks include rising wages and other costs, the outcome of negotiations with health insurers, falling private health insurance membership, government funding decisions, and the cost of upgrading hospitals.
Natalie Davis has been managing director and chief executive since 2024, and has been working to cut costs and improve its Australian hospitals’ profits.
Latest results, as at 9 November 2026
Full year to June 2026, reported 27 August 2026: revenue rose 4 per cent to $18.6 billion, and underlying profit rose 23 per cent to $364 million, in constant currency terms. Its earnings margin improved, and both its Australian and U.K. businesses generated more cash than they used. Ramsay paid total dividends of 91 cents a share, fully franked, and expects earnings to grow again in the 2027 financial year.
Next update: the shareholder vote on the Ramsay Santé demerger in late November 2026, and the half-year results, to December 2026, in February 2027.
