I have jumped on board with Virtus Health today as a SH. I really like where they are positioned at the moment in terms of recovering quickly as restrictions are lifted. I am also excited as having Kate Munnings on board the former COO from Ramsay Healthcare. I believe she is going to add a lot of value to Virtus Health from the experience she gained at Ramsay Healthcare.
They have already resumed non urgent elective surgeries in Australia at the end of April, Denmark and Singapore are also back running as well as Ireland partially back and now just waiting on the UK to get back to full operations.
I also like the fact that 80% of the revenue is generated in Australia which has recovered a lot quicker than other countries and restrictionas already easing. I fell this also mitigates a lot of risk of being exposed to countries that are currently suffering a lot worse from COVID 19.
The idea of them driving a strategy around using AI with what they do to make babies is IMO a game changer!
Good Luck to all VRT Holders!New Virtus Health boss Kate Munnings jumps into the fire
Carrie LaFrenzSenior reporterMay 4, 2020 – 12.00amKate Munnings was meant to be sitting on a beach in sunny Port Douglas, far north Queensland, attending her nephew's wedding this past weekend.
Instead, the new boss of Virtus Health jumped into her first role as chief of an ASX-listed company early at a time of great uncertainty, as she looks to steer the fertility specialist through theCOVID-19 crisis.
Kate Munnings, the new CEO of Virtus Health, believes AI will play a big role in the future of making babies. Wolter Peeters
Munnings finished her previous job as chief operating officer of Ramsay Health Care's local operations on March 17. She was appointed to the Virtus board the following day and started the top gig five days later.
"With the acceleration of the pandemic, it became obvious that sitting on the sideline and not contributing to Virtus, which is my future, is a silly move," Munnings tellsThe Australian Financial Reviewover a Zoom call from her Greenwich office, on Sydney's north shore.
"I agreed with the chair to start early in order to contribute to the solution and try and help the team navigate what was a very complex time in our history."
Munnings admits it has been a tough start, given she has not been able to meet most staff in person or visit operations because of the strict travel bans and social distancing measures.
It became obvious that sitting on the sideline and not contributing to Virtus, which is my future, is a silly move.
—Kate Munnings, Virtus CEO
"I like to meet people and have personal impact and build relationships, and that is hard to not do," she says. "I planned to go around and spend time listening, and while we can Zoom ... it's not quite the same."
Her varied background, from starting her career as an HIV nurse to studying law and making partner at several big firms including Baker McKenzie, has been helpful in guiding her decisions at a new organisation that has been hit hard by coronavirus.
Virtus CEO Kate Munnings considers Christine Lagarde, president of the European Central Bank, a role model. Getty
As Munnings took the reins, Virtus was already in cost reduction mode as the senior executives and the board took a 20 per cent pay cut until June 30. The company stood down the majority of its staff in Australia and Europe, and deferred payment of the interim dividend until November. It's seeking government financial support in Australia, Ireland and Denmark.
She expects it will take about six months to get back to "relative normality" since all are nervous about a second wave of COVID-19, which has killed 93 people in Australia.
On April 27, Virtus' clinics along the eastern seaboard resumed non-urgent elective surgeries after the federal government partially lifted the ban on such activities.
Fertility specialists are continuing telehealth consulting while its seven-day hospitals resumed IFV procedures and surgeries including gynaecology and endoscopy. Virtus is still providing diagnostic and pathology services at reduced capacity.
The $233 million company's clinics in Britain are closed because of COVID-19, while Ireland is partially operating; its Denmark and Singapore clinics are open.
Nearly 80 per cent its revenue is generated in Australia, but Munnings remains committed to all overseas operations and sees opportunity to grow into Asia via its Singapore clinic.
Asked if it was a tough call to leave global private hospitals operator Ramsay, where she was heavily involved in its out-of-hospitals strategy, Munnings says she was ready for a leadership role at a smaller group where she could make a bigger impact.
'A hidden gem'
The 53-year-old from Manly, NSW, has big goals, calling Virtus "a hidden gem", but the company now needs to find its feet after pursuing a roll up strategy in recent years.
She sees theuse of artificial intelligence in making babiesas likely to transform the sector and plans to lean into collaborations like the one established with Harrison.ai in 2018. The technology uses an AI algorithm to select the best embryo for implantation.
In fiscal 2019, cycle volume in Virtus' Australian clinics increased 1.5 per cent against comparable market growth of 4.9 per cent. Demand for lower-priced services continued to increase, with its lower-priced offer jumping more than 25 per cent over the year while growth in premium services fell by 2.6 per cent.
Munnings says she is keen to look at different funding models, such as Denmark's fixed price for three IVF cycles, rather than just focusing on the low-cost offer.
She plans to address capacity issues at its day hospitals by offering non-complex procedures with same-day admission so patients recover at home. She will seek partnerships with cancer service providers in order to provide fertility counselling at a time when fertility could be impacted.
Munnings – a self-admitted mega Elton John fan – is a long way from her first job at 14 years old in the ladies underwear department of Grace Brothers. She names several high-profile women as role models, including former Baker McKenzie chair and president of the European Central BankChristine Lagardeand Wesfarmers directorDiane Smith-Gander, who was chair when Munnings was appointed chief operating officer of Transfield Services in 2014.
"They've had big impacts on my career and I've always tried to pay it forward to others," she says.
