Mediclinic freezes hiring, offers early retirement amid AI integration

SOUTH AFRICA – Mediclinic, a leading private hospital group in South Africa, is undergoing a significant operational transformation by integrating artificial intelligence (AI) into its administrative processes.

This strategic shift, announced during Remgro’s 2025 Capital Markets Day, includes a hiring freeze and voluntary early retirement packages for corporate and shared services staff.

The initiative aims to streamline operations and reduce administrative costs without impacting clinical staff such as doctors and nurses. ​

Chief Operating Officer Bertrand Levrat, who joined Mediclinic in June 2024, is spearheading this transformation.

Drawing from his experience at Geneva University Hospitals, where he successfully implemented AI solutions to optimize administrative tasks and patient flow, Levrat emphasized the importance of adapting to the evolving healthcare landscape.

He stated, “These measures will help reduce the administrative costs of the group,” highlighting the goal of achieving approximately R2 billion in savings by 2027. ​

AI applications enhancing operational efficiency

Mediclinic is deploying AI across various administrative functions to enhance efficiency: ​

• Appointment Scheduling: An AI-driven scheduling system at Mediclinic Middle East has increased daily bookings by 100, reducing patient wait times. ​
• Clinical Documentation: AI agents are streamlining the procurement of clinical documentation, saving staff time and resources. ​
• Billing Processes: Automation of clinical coding through AI is improving billing accuracy and efficiency. ​
• Revenue Cycle Management: AI tools are optimizing revenue cycle processes, contributing to cost savings. ​
• Radiology: AI models are assisting in reading and interpreting radiology images, enhancing radiologists’ productivity. ​

To oversee the implementation of these AI initiatives, Mediclinic has established a dedicated team under its Chief Data Officer.

This team is responsible for developing governance structures, processes, and technology frameworks to support the company’s digital transformation.

Additionally, Mediclinic is investing in continuous AI-related training and upskilling for its workforce to ensure employees are equipped to work alongside new technologies. ​

Financial performance and workforce considerations

In addition to these operational changes, Levrat reassured stakeholders that Mediclinic is not facing financial difficulties.

The company’s recent financial results for the six months ending September 30, 2024, revealed a 6% increase in revenue, which rose from US $2.2 billion (R40.8 billion) to US $2.34 billion (R43.3 billion).

Operating profit also saw a significant increase of 26%, growing from US $132 million (R2.4 billion) in September 2023 to US $166 million (R3.2 billion) in 2024.

However, net profit remained steady at US $5 million (R93 million), and Mediclinic attributed its performance to strong volume growth across all divisions.

In its Southern Africa division, revenue grew by 10% from US $557 million (R10.3 billion) to US $613 million (R11.4 billion), while operating profit rose by 15% to US $76 million (R1.4 billion).

Levrat emphasized that the adoption of AI is intended to complement the existing workforce, not replace it.

“This transformation includes the realignment of our corporate office structures, reinforcing our ability to support our facilities in providing exceptional care to our patients,” he stated. ​

However, the restructuring has raised concerns amid South Africa’s high unemployment rates, particularly among the youth.

The country’s unemployment rate stood at 31.9% in the fourth quarter of 2024, with youth unemployment rates significantly higher.