Malaysia: KPJ Healthcare focuses on increasing revenue per patient

Malaysia flag

KPJ Healthcare Bhd will focus on improving its average revenue per inpatient following a strong set of results in the third quarter of 2022, supported by healthy patient volume growth, including from international patients.

KPJ also intends to hire more consultants for subspecialties and capitalise on medical discipline and service offerings that could help sustain revenue per inpatient at current levels or improve it further to RM7,000 (US$1,580).

KPK’s management has indicated that business activities in KPJ DSH2 (Damansara Specialist Hospital 2) have been steadily gaining traction in the months of September-October, and have generated RM800-900,000 (US$181,000) worth of revenue within two months.

This new hospital is expected to breakeven at EBITDA-level within three years.  It is looking to fill 50% of its capacity with foreign patients.

To attract medical tourists, KPJ will be establishing more centres of excellence, and partnering with more international insurance panels.  A cardiac and neuro centre is targeted to open in 2023, orthopaedics and traumatology centre in 2024 and a gastroenterology and endoscopy centre in 2025.

Since the reopening of international borders, KPJ has made medical tourism a key focus. The company claims to have generated RM93.1 million (US$21 million) worth of revenue from medical tourism in the nine-month period this year.

In terms of foreign patient volume, the 9M22 volume has recovered close to 2019 levels, despite international borders still remaining closed in Q1 2022.

Treating foreign patients is a good way to boost revenue intensity in Malaysia, as hospitals are allowed to charge foreign patients 20% more (industry practice) than the charges stipulated in the 13th Fee Schedule.