IHH: Year end Result 2016



IHH Healthcare Bhd posted revenue of RM2.63bil for the fourth quarter ended Dec 31, 2016, bringing its full year revenue to RM10.02bil, which was 18.4% higher than the corresponding period last year.

However, the group had three exceptional items booked during the quarter, which contributed to its net loss of RM42.51mil.

The three exceptional items booked comprised the RM132.7mil investment in Gleneagles Khubchandani Hospital, India, RM53.6mil settlement for value-added tax claims in Turkey and RM335.2mil worth of unrealised forex losses on translation of non-Turkish Lira borrowings.

Its FY16 net profit fell 34% from RM933.9mil to RM612.35mil.

IHH managing director and CEO Dr Tan See Leng said that the resilient core performance for the financial year was underpinned by the group’s differentiated strategy to prudently refine and rebalance its portfolio to optimise long term returns.

“During the year, we pivoted from greenfield developments to making transformational acquisitions, and now we are consolidating our India platform further by rebranding all our global hospitals facilities under the IHH ‘Gleneagles’ brand to drive greater brand equity.

“We look forward to opening our new flagship hospital, Gleneagles Hong Kong, some time next month, which will place the group in a good position for its next stage of growth. “We have sufficient staff to begin operations in Gleneagles Hong Kong next month, and we target to have 1000 staff eventually,” said Tan.

Inpatient admissions at its Singapore hospitals grew 4.8% year-on-year to 18,174, driven by an increase in local patients, while inpatient admissions at its Malaysia hospitals increased 3.6% to 47,318.

Average revenue per inpatient admission or revenue intensity rose 1.5% to RM28,189 in Singapore and improved by 12.3% to RM6,151 in Malaysia as the group continued to take on more complex cases.

India recorded the highest numbers in inpatient admissions and revenue intensity with inpatient admissions growth of 7.7% to 15,838 while revenue intensity improving by 15.5% to RM7,997

Going forward, IHH expects to face increasing cost pressures including pre-operating and start-up costs at its new hospitals, wage inflation from increasing global competition for healthcare talent, and rising purchasing costs from the strengthening US Dollar.

The group aims to mitigate these cost pressures through prudently managing costs, improving operational efficiencies and focusing to improve the mix of higher revenue intensity cases.

/theSTAR 24-02-2017

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Asia targets medical tourism from US travel ban



Seeking to capitalise on US President Donald Trump's controversial new travel restrictions against Muslims, companies and officials in Asia said they would target greater tourism and education ties with Muslims worried about the curbs.

In Muslim-majority Malaysia, the group CEO of Asia's largest budget airline, AirAsia, suggested countries in the 10-member Association of Southeast Asian Nations (ASEAN) could cash in.

"With the world now getting more isolationist it's time for ASEAN to start making it easier for tourists to come," Tony Fernandes said in a tweet on Tuesday.  
 
Malaysia is a popular destination for tourists from the Middle East, with nearly 200,000 arriving in 2016 from countries including the United Arab Emirates, Saudi Arabia, Iraq and Qatar.

The country is also a key destination for medical tourism and halal tourism, with food and other products largely halal-certified.
  
/theSTAR 31-01-2017

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Malaysia Medical Tourism:2017



The medical tourism industry in Malaysia is expected to achieve its targeted revenue of RM1.3bil in 2017 according to Malaysia Healthcare Travel Council (MHTC).

CEO Sherene Azli said the industry was experiencing a 30% growth year-on-year. “Malaysia has the ecosystem and infrastructure to provide quality end-to-end healthcare system and services that are globally competitive,” she told reporters after the launch of ShareMyLove campaign here.

The campaign was part of MHTC’s efforts in promoting Malaysian hospitality and its excellent healthcare services. 

On average, medical travellers’ contributions to the economy were double that of the regular tourists.
“On average, a foreign patient would spend about RM1,000 per visit, not including other expenditures while being in the country,” she said.

Revenue from medical tourism stood at RM1 bil in the 2016 financial year.

On prospects, MHTC estimated that one million visitors would flock to Malaysia this year, contributing up to RM5bil to the total gross domestic product.

Last year, over 860,000 medical travellers sought treatment in the country. The number was expected to grow, with more private hospitals able to cater to more foreign patients.

Private hospitals nationwide currently have an estimated 15,000 beds.

The top five treatments were cardiology, oncology, orthopedics, IVF, dental and cosmetics. Indonesia and Singapore, formed the largest chunks of medical tourists, with the industry also seeing an increase in the flow from West Asia and other Western countries. 

Malaysia has been awarded Health and Medical Tourism: Destination of the Year for two consecutive years (2015 and 2016) by the International Medical Travel Journal.

 /theSTAR 10,14-02-2017


Disclaimer: Views or opinions expressed are solely those of the Author and should be used with discretion. The Author shall not be held liable for any acts or omissions arising from the use of the information. The user will be personally liable for any damages or other liability arising hereof.

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