Mediclinic has issued a response to last week’s media reports about job cuts linked to the group’s artificial intelligence strategy, saying while AI initiatives were part of a broader costs rationalisation process, there is no specific directive where AI has been identified to replace full-time employees.
The clarification comes after reports that the healthcare provider was implementing a freeze on non-essential hiring and offering severance packages as part of a strategy to save nearly R2bn by 2027 through AI implementation, reports Daily Maverick.
‘Measured transition’ to AI
According to additional information provided by Mediclinic, the group is focusing on a “measured transition to greater AI adoption” that will “improve both the company’s effectiveness and patient outcomes”.
The plan is to automate key processes through what Mediclinic calls “intelligent automation”, which will ultimately free up resources for high-impact work. Examples cited in the response include using AI to predict client no-shows, optimising staffing during peak periods, and streamlining back-office shared services.
Regional digital initiatives
The company identified Dubai as its leading region for AI implementation, but highlighted several digitisation initiatives already under way in South Africa:
• A unified care record system already in place;
• Ongoing replacement and upgrades of core hospital systems;
• Plans to implement electronic healthcare records (EHR) across the South African division;
• Completed initial pilot of an electronic surgical safety checklist;
• Development of the Mediclinic baby app to support new and expecting parents; and
• Mediclinic@Home service currently under development.
Cost rationalisation context
Mediclinic acknowledged that its AI initiatives form part of a “broader cost rationalisation process” aimed at delivering annual savings of $100m over three years through its target operating model.
Although the company confirmed that this process includes “a hiring freeze and offering early retirement”, it maintains that these measures are not directly linked to AI replacing existing staff positions.
The clarification mailed to Daily Maverick stated that a shortage of skilled staff remains a key challenge for the business and highlighted its active involvement “in the training and recruitment of nurses and doctors across the regions where (Mediclinic) operates”.
The company’s transition is “being implemented in a phased approach across the group in all regions” and that “all implementation of AI will be done incrementally, through a responsible approach to AI and automation”.
The company said these changes are intended to have a progressive impact on business operations and healthcare facilities, which will continue to operate as usual.
See more from MedicalBrief archives:
Jobs frozen and severance plans offered as Mediclinic embraces AI
Growing role for AI in everyday medical interactions