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A Look At Singapore’s Healthcare Providers

stethoscopeRegardless of the state of our economy, people still require medical treatment. Here in Singapore, our ageing population coupled with a rising prevalence of risk factors such as chronic illnesses is contributing to a growing demand for healthcare services.  With that in mind, one might assume that healthcare service providers are raking in profits, but a closer look at some of the companies in Singapore seems to prove otherwise.

With a total of 22 subsidiaries and affiliates under four medical clusters, the Singapore Medical Group (SGX: 5OT) recently opened The Cancer Centre at Mount Elizabeth Novena Specialist Centre. The company started off with a Lasik surgery clinic in 2005, and has since expanded to cover four clusters in the areas of eye, aesthetics, orthopaedics and sports, and critical illness. Singapore Medical Group’s share price is valued at 0.4 of its sales, and has been suffering losses for two consecutive years.

Healthcare Medical Corporation (SGX: 5NG) operates 117 medical centres and clinics in Singapore and Shanghai, with 100 of them based in Singapore.   Under its Silver Cross brand name, the company has a strong presence within the heartlands, with 54 general medicine clinics.  The company has indicated interest to expand into specialist services, especially in women and mental healthcare.  In its latest financial year, Healthcare Medical turned a proft of $7 million from a loss of $7 million the year before. It is currently valued at 2.4 times of sales.

Pacific Healthcare (SGX: P47) owns and operates Paragon Medical Centre. It also runs a medical centre in Jakarta. Unfortunately, it has suffered losses for five consecutive years.  This might be attributed to the fact that 63% of its revenues was spent on employees’ salaries and benefits. The market values its shares at 60% of its sales.

Raffles Medical Group (SGX: R01) is probably a familiar name in Singapore. In April this year, the group’s executive director, Dr Loo Choon Yong, was named Businessman of the Year at the annual Singapore Business Awards. Under his leadership, the company has shown a steady earnings record for 4 years, growing from $31million in 2008 to $57million last year.  The company is currently valued at 5.7 times of sales.

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The Motley Fool’s purpose is to help the world invest, better. The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Ivan Looi doesn’t own shares in any companies mentioned.