Guess which $7 billion ASX 200 healthcare share is leaping 14% today

S&P/ASX 200 Index (ASX: XJO) healthcare share Ramsay Health Care Ltd (ASX: RHC) is off to the races today.

Shares in Australia’s biggest private hospital operator closed yesterday trading for $31.90. In morning trade on Tuesday, shares leapt to $36.38 apiece, up 14%. After some likely profit-taking, in later morning trade, shares are swapping hands for $35.48 each, up 11.2%.

This sees the ASX 200 healthcare stock commanding a market cap of $7.4 billion.

Here’s what’s grabbing investor interest today.

ASX 200 healthcare share lifts off on AGM

Ramsay Health Care shares are surging today on the heels of the company’s annual general meeting (AGM) in Sydney.

Ramsay Health Care chair, David Thodey, opened the meeting by acknowledging the headwinds that have faced the ASX 200 healthcare share over the past year.

“This year, Ramsay has continued to navigate the industry wide shifts impacting the provision of healthcare services across all our regions,” he said.

Thodey noted:

The operating environment remains challenging, with ongoing cost pressures and the reluctance of some payors to recognise and pay their fair share of these inflationary cost increases. Elysium and Ramsay Santé in particular, face a number of industry headwinds.

But judging by today’s strong share price gains, ASX investors appear to share Thodey and the board’s confidence that the ASX 200 healthcare share’s “refreshed strategy, strengthened group executive team, and a sharpened focus on our core Australian business positions us strongly to navigate the evolving private healthcare landscape and improve earnings in our core Australian business”.

Thodey added:

While there is still much work ahead and cost pressures remain, the Board is encouraged by the progress we are making towards improving the performance of our Australian and UK hospital businesses.

A word from Ramsay Health Care’s CEO

Ramsay Health Care CEO and managing director Natalie Davis, who stepped into the leadership role on 2 December last year, took the podium next.

Davis said:

Over the past year, we’ve maintained our leading patient NPS scores across our regions. We’re growing our clinical trials network in Australia to expand access to new treatments, to strengthen our doctor value proposition and to build partnerships that support clinical innovation.

When the ASX 200 healthcare share released its full-year FY 2025 results on 28 August, the company reported a 1.7% increase in underlying net profit after tax (NPAT) from continuing operations to $305.3 million.

At the AGM today, Davis noted ongoing improvement on the balance sheet.

“Since reporting our full year results, we have successfully refinanced $2.05 billion of Funding Group facilities, extending the duration of our facilities and reducing the margin,” she said.

And she concluded that the ASX 200 healthcare shares is on track with its three key performance priorities, “transforming our market leading Australian hospital business; strengthening our capital discipline and improving capital returns across the portfolio; and evolving our culture of ‘People caring for People’ to innovate and drive performance”.

The post Guess which $7 billion ASX 200 healthcare share is leaping 14% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.