The Tribune

By Neil Hartnell

Tribune Business Editor

nhartnell@tribunemedia.net

Doctors Hospital is aiming to “ramp up” revenues by 20 percent, and expand profit margins “to at least 10 percent” of top-line income, as its chief executive unveiled plans to relinquish this post early in the New Year.

Dr Charles Diggiss, writing in the BISX-listed healthcare provider’s just-released 2025 annual report, confirmed that he will step down from the role when its 2026 financial year closes at end-January but retain the post of president to continue “guiding our strategic direction”.

“As we prepare for the next chapter, I want to share that I will be stepping down as chief executive at the end of fiscal year 2026,” Dr Diggiss said. “I will, however, continue to serve as president of DHHS (Doctors Hospital Health Systems), remaining actively engaged in guiding our strategic direction, supporting leadership continuity and championing the mission we all share.

“Notably, I stay on fully engaged as provost of our Institute of Learning (DH-TIOL). This planned transition is part of a thoughtful, deliberate succession process. We are confident in our executive leadership pipeline and have full faith in the next generation of leaders who will carry our vision forward with skill, compassion and clarity of purpose.

“DHHS is in a strong position - operationally, financially and culturally. As president, I remain committed to strengthening our partnerships, expanding our reach and ensuring that everything we do continues to serve the evolving needs of our patients, associates and communities.” Dr Diggiss has held the chief executive post for more than four-and-a-half years after he replaced Charles Sealy in early 2021.

No successor was named in the 2025 annual report, but a smooth transition was promised by the healthcare provider. “In preparation, a comprehensive transition plan has been developed to ensure a smooth and strategic leadership handover. This plan reflects our commitment to continuity, cultural alignment and long-term stability,” Doctors Hospital said.

“As part of this transition, key members of our strategic leadership team are actively participating in executive leadership programs with Shift180, a renowned leadership consultancy. These programmes are focused on succession readiness, strategic execution and fostering a values-driven leadership culture.”

Doctors Hospital’s annual report branded its immediate future as “growth with purpose” amid its ongoing investment and expansion phase. “The coming years will be defined by bold steps - expanding access across the archipelago, embracing emerging technologies and building a more inclusive, resilient healthcare system,” Dr Diggiss wrote.

“Whether through the development of new clinical capabilities, the continued advancement of our digital health platforms or our increased public ownership, DHHS is poised for a future defined by growth with purpose.

“Our business thrives in the narrow space of profit resulting from the significant headwinds of the cost of business,. and the threat to our revenue from affordability barriers and bad debt. We have the capacity to ramp up and sustain our revenue by some 20 percent while holding costs disproportionately down. We seek to move thereby our margins to at least 10 percent of this new level of revenue.”

Doctors Hospital also confirmed the impending sale of its Harbourside complex on East Bay Street, via a lease-to-own deal with the Government, for the first time in the 2025 annual report. “Our Harbourside location, originally developed as a key pillar in our continuum of care for older adults and individuals requiring specialised support, is now preparing for transition ownership following the possibility of an external entity to purchase the facility,” the BISX-listed healthcare provider said.

“We view this transaction as an opportunity to redirect capital and operational focus into other high-impact initiatives within our continuum of care, while remaining open to future collaboration with the new owners to uphold the intended service standards of DHHS.” Harbourside was initially conceived to provide care to elderly and aging patients, along with patient therapy services including aqua therapy in an outdoor pool.

An on-site oxygen generation plant and haemodialysis unit were also included in the plans. However, Tribune Business last week revealed that the Government is paying $39m over a ten-year period to acquire Harbourside from Doctors Hospital and its shareholders.

Dr Michael Darville, minister of health and wellness, told Tribune Business that the deal has been structured as a lease-to-own or purchase agreement with payments to the BISX-listed healthcare provider spread out over 120 months - likely to ease the burden on an already-stretched Public Treasury and taxpayer.

“The Harbourside medical hospital is a ten-year lease purchase agreement - 120 monthly payments with a total purchase price of $38.901m or thirty-eight million, nine hundred and two thousand, nine hundred and fifteen dollars,” the minister confirmed in response to this newspaper’s inquiries.

Doctors Hospital also signalled that is still eyeing an equity capital raise - something that it has long been mulling - although the target date given in the annual report of the 2026 third quarter has now been passed because it is now the fourth quarter. The funds raised would be directed to financing the company’s continued expansion, as well as capital investments in infrastructure and technology.

“In a bold step toward inclusive ownership and sustainable value creation, we are advancing our employee stock ownership plan (ESOP) alongside preparations for a planned public equity raise targeted for the 2026 third quarter,” Doctors Hospital said.

“This dual initiative represents a defining moment in our evolution from a high-performing private healthcare provider to a more ownership-driven organisation designed to foster greater alignment between employees, leadership and shareholders.”

It added: “Our ESOP is a transformative initiative designed to empower our workforce by aligning employee interests with the long-term success of the organisation. This milestone will mark a new chapter in our journey, allowing associates to become stakeholders and further enhancing our organisational culture of ownership and accountability.

“The planned public equity raise will support capital investments in infrastructure, technology and regional expansion, financial flexibility to scale strategic initiatives, including our LAMP programme, regional facilities under the EAGLE Initiative, and the continued roll-out of patient-centric innovations and liquidity pathways for shareholders and new investors, while maintaining strong governance and mission alignment.”

The EAGLE initiative is Doctors Hospital’s multi-island roll-out aimed at providing affordable access to healthcare services nationwide, while the Loyalty Advantage Membership Programme (LAMP) is its alternative to traditional health insurance coverage aimed at “lowering barriers to access for average Bahamians”.