Singapore: Startup costs continue to weigh on HMI

Wei Jia Chin, chief executive officer, HMI

Third quarter results at SGX-listed but Malaysian-focused private healthcare provider Health Management International (HMI) have been hit by startup costs at its ambulatory care centre in Singapore.

Q3 profits fell 15.4% to M$13.4m (US$3.2m) on revenues that gained 8.1% to M$124.8m.

Revenues were up thanks to rising patient loads and average bill sizes at the group’s two hospitals, Mahkota Medical Centre and Regency Specialist Hospital.

Total patient load increased 1.3% to 116,202 for the quarter. Average outpatient bill sizes increased 5.3% to M$233 and average inpatient bill sizes increased 4.9% to M$8,191. Bed occupancy increased to 61.2% while the total number of operational beds remained stable at 437.

HMI’s EBITDA declined 2.2% to M$27.5m while EBITDA margin contracted to 22.1% as a result of gestation costs from the group’s new ambulatory care centre in Singapore, StarMed Specialist Centre. Excluding the impact arising from gestation costs at StarMed, EBITDA would have increased 5.6%.

StarMed is expected to incur gestation start-up losses from its operations for up to three years.

“We remain confident in the potential of StarMed in light of rising demand for day surgeries and diagnostic imaging,” said chief executive Chin Wei Jia. “Following the completion of our investment into a network of primary care clinics, we have widened our healthcare network in Singapore to provide quality healthcare at competitive pricing.”