Billable hours in Quebec is down 24% Y/Y in Q1.
Billable hours in Ontario now accounts for 19.5% of total hours but contributes less than 30% of all revenues.
Ebitda margins is about 7% which is lower than their targeted 9-10% range.
As I suspected, labour shortages in Canada caused upward pressure on wages which has lowered the profitability of the company. This should stabilize going forward.
From the press release:
"Independent labour accounts for less than 5% of the total hours worked in the public health care system and should be viewed as tool to ensure there is no rupture in the delivery of care. Bill 10 mainly states that the Ministry of Health can decide where, when and for how long institutions can use independent labour."
If you eliminate private labour, then the public sector will have to spend a lot more money to attract talent and improve working conditions. I think it's fair to say that the public sector is losing the battle when it comes to competing with more innovative healthcare companies. It's unfortunate that as a result of this, they want to eliminate the competition altogether.
Follow the money. This is not the solution.