Can IHH Healthcare withstand rising cost pressure?

Staff costs have skyrocketed to unprecedented levels.

Cost pressure crushing the healthcare firm has showed no signs of slowing down, aggravated by wage inflation, higher minimum wages, and higher inventories, among others.

According to analysts from UOB Kay Hian, other contributors to the ballooning pressure include higher consumable costs from the implementation of GST in Malaysia and increased complex procedures undertaken.

However, UOB Kay Hian said IHH is expected to offset the impact of these cost pressures through higher intensity procedures, cost optimisation and tighter cost controls.

Additionally, the report said three new hospitals are targeted to come on stream in 2017, which are Gleneagles Hong Kong, Parkway Hospital Chengdu and Acibadem Altunizade in Istanbul.

The healthcare firm is also expanding its footprint to Bulgaria, as Acibadem signed a definitive agreement to acquire Bulgaria-based Tokuda Group for RM286.1m while simultaneously acquiring approximately one-third stake in City Clinic from its existing operating partners for RM48.3m, the report said.

“Pending conditions precedent, the deal is expected to close within three months, following which Acibadem will be the leading private healthcare operator in Bulgaria with four hospitals totaling approximately 750 beds and 4 medical centres,” UOB Kay Hian added.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia