GWest Corporation Limited, the Montego Bay, St James-based medical facility, is currently awaiting a final evaluation from the Ministry of Health & Wellness (MOHW) ahead of a planned upgrade to hospital status.

GWest made the application within the last financial year ending March 2024 and has had its facilities inspected by the relevant parties. This move comes nearly four years after it got its urgent care facility registered with the MOHW which allowed it to accept health insurance from customers. GWest was one of eight medical facilities in November 2022 approved under the MOHW’s Code Care intervention to reduce the backlog of surgeries in Jamaica.

GWest offers different medical services and generates lease income from its 18,110.65-square foot Fairview facility.

“Our main focus for the next financial year is to continue to increase our revenue and profitability through increased patient fees from our ambulatory surgery centre and inpatient facilities. We will also be improving our capacity and infrastructure, enhancing our equipment capabilities with a target to upgrade to hospital status which will improve our billing capacity. Our model is a multifaceted strategy to grow revenue, earnings and cash flow. We believe the following are key components to this strategy,” the 2024 annual report stated.

This move comes as a bid by the company to further drum up revenues and try to bring it in the black or profitability. GWest opened in late 2017, but has struggled to generate consistent profits from its operations and has sold units at the facility to bring in cash to address its ongoing obligations.

For the 2024 financial year, GWest’s revenue experienced a 40 per cent uplift to $277.10 million as it nearly doubled its medical service offerings through increased patient activity. While the company reported an operating profit of $16.37 million, the absence of a larger tax credit saw the company swing from a net profit of $2.15 million to a net loss of $13.52 million.

The company is now looking to collaborate with several parties and explore partnerships for the lease or sale of space in the GWest building. This is meant to further increase activity at the facility which serves a part of the Western region of Jamaica. The company’s board has also set a mandate to try and diversify the company’s revenue sources to benefit from opportunities in the health and wellness space. Key elements of this strategy will be offering new services to expand the continuum of care, expand their physician engagement strategy and benefit from the aging population and advancements in medical technology.

GWest’s first quarter revenue increased 14 per cent to $56.18 million, but a sharp jump in its direct costs pushed its gross profit down 63 per cent to $8.67 million. A 36 per cent cut in administrative expenses resulted in the company’s operating losses only rising 43 per cent to $10.53 million. After accounting for higher financing costs, the company’s net loss was 29 per cent higher at $15.66 million.

A decrease in the company’s receivables and increase in its payables pushed its operating cash flow up to $46.57 million, which was enough to cover its financing costs. As a result, the company ended June with $38.79 million in cash and cash equivalents.

Total assets decreased two per cent during the quarter to $1.74 billion with shareholder’s equity declining two per cent to $687.39 million.

GWest’s stock price closed Tuesday at $0.90 which leaves the company up 2.37 per cent year to date with a market capitalisation of $436.76 million. However, this is a 64 per cent decline from the $2.50 initial public offering price in December 2017.