Fund manager RAM is going long on private hospitals despite the financial struggles faced by big operators like Healthscope, arguing the sector still offers “wonderful fundamentals” and income returns above 7 per cent from the right assets.

RAM is in the process of reweighting its ASX-listed Essential Services Property Fund – or REP as it is known by its ticker – away from a near even split between convenience malls and healthcare assets to an 80:20 split in favour of healthcare.