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Mediclinic claps back: No specific directive to replace staff with AI

Mediclinic claps back: No specific directive to replace staff with AI
Mediclinic has issued a formal response to reports about job cuts linked to its artificial intelligence strategy, and Daily Maverick has been given to understand that there is no specific directive where AI has been identified to replace full-time employees.

In an emailed response to Daily Maverick questions, Bertrand Levrat, Mediclinic group chief operating officer, said the company is “evolving its operating model to ensure we remain fit for purpose in a rapidly changing healthcare landscape”. 

“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. “This evolution will strengthen our organisation and ensure we remain competitive, sustainable, and best positioned to meet the needs of our patients, clients, and stakeholders.”

The clarification comes after Daily Maverick reported that the healthcare provider was implementing a freeze on nonessential hiring and offering severance packages as part of a strategy to save nearly R2-billion by 2027 through AI implementation. 

Read more: Mediclinic freezes hiring and cuts jobs — AI strategy aims for R2bn in savings 

‘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 underway in South Africa (SA):

  • 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

  • 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 $100-million (R1,878-billion) 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.

Read more: The ‘Future of Work’: Balancing AI efficiency with human dignity in a changing landscape

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”. 

‘Responsible approach’


Daily Maverick  has been reliably informed hat 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. DM