Remgro-owned Mediclinic is reshaping its operations by embracing artificial intelligence, resulting in a hiring freeze and early retirement offers.
AI Drives Major Operational Shift
According to MyBroadband, Remgro has informed investors that it has frozen all new recruitment and offered a voluntary early retirement package to corporate office and shared service personnel as it enhances its operating model.
This was revealed during Remgro’s 2025 Capital Markets Day.
The improved operating model will leverage artificial intelligence (AI) to strengthen Mediclinic’s core business by focusing on operational efficiency.
Leadership and Strategic Direction
Mediclinic’s chief operating officer, Bertrand Levrat, confirmed that the hiring freeze and early retirement offer will help cut administrative costs.
“For SA-based corporate office people and shared services people, we have offered early retirement package. These will enable us to reduce the administrative costs of the group,” he said.
Mediclinic said the strategy could help the firm save nearly R2 billion by 2027. The company emphasised that the hiring freeze does not apply to nurses and doctors.
The company said its South African business was included in implementing its new operating model, and formed part of Mediclinic’s broader strategy to leverage AI and automation.
Examples of AI in Action
Mediclinic highlighted several successful examples of the adoption of AI and automation in the medical field:
- An AI model for scheduling appointments with doctors in AI has helped improve operational efficiency through reduced standby time and resulted in an additional 100 bookings per day at Mediclinic Middle East.
- The implementation of an AI agent to procure clinical documentation is saving man-hours, resulting in cost savings in staff time.
- The automation of clinical coding through AI is showing the potential for increased efficiency and accuracy in billing.
- AI agents deployed in revenue cycle management are showing the potential for cost savings in administrative processes.
- Mediclinic has started deploying AI models to read and interpret radiology, improving radiologists’ efficiency.
Governance and Workforce Development
Mediclinic has appointed a dedicated team, operating under its chief data officer, to lead the implementation of its artificial intelligence, data, and automation strategy.
This team is responsible for setting up governance structures, processes, and technology frameworks to support the company’s digital transformation.
As part of this strategy, Mediclinic will also invest in continuous AI-related training and upskilling for its workforce.
According to Daily Maverick, Levrat emphasised that Mediclinic will not use AI to replace full-time employees, following early reports on the company’s plans.
“This transformation includes the realignment of our corporate office structures, reinforcing our ability to support our facilities in providing exceptional care to our patients,” Levrat said.
The announcement comes amid growing concerns about unemployment in South Africa, particularly among young people.
According to IOL, individuals aged 15 to 24 face an unemployment rate of 59.6%, while those aged 25 to 34 have a rate of 39.4%, contributing to a broader youth unemployment rate of 45.5%.
In this context, Mediclinic’s commitment to workforce development and retention, even as it adopts advanced technologies, marks a notable approach.
Strong Financial Position Maintained
During his Capital Markets Day presentation, Levrat emphasised that the private hospital firm isn’t in financial trouble, but in a sound financial position.
Looking at Mediclinic Southern Africa, revenue grew by 10% from $557 million (R10.3 billion) to $613 million (R11.4 billion), while operating profit increased by 15% to $76 million (R1.4 billion).
How do you think Mediclinic’s shift to AI will impact the healthcare industry and its workforce in the coming years?
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