Raffles Medical Group Ltd (SGX: BSL), or RMG for short, is a leading private healthcare provider in Singapore and South East Asia. Established in 1976, it now operates beyond Singapore in 12 cities across China, Japan, Vietnam and Cambodia. The firm released its annual report for the financial year ended 30 December 2017 (FY2017) earlier this month. I learnt a few things as I was reading through the annual report’s operations review, one of the many sections in the report. Here are three main takeaways for me. Expanding for growth In Singapore, RMG has grown beyond its flagship Raffles Hospital…
Raffles Medical Group Ltd (SGX: BSL), or RMG for short, is a leading private healthcare provider in Singapore and South East Asia. Established in 1976, it now operates beyond Singapore in 12 cities across China, Japan, Vietnam and Cambodia.
The firm released its annual report for the financial year ended 30 December 2017 (FY2017) earlier this month. I learnt a few things as I was reading through the annual report’s operations review, one of the many sections in the report. Here are three main takeaways for me.
Expanding for growth
In Singapore, RMG has grown beyond its flagship Raffles Hospital to open a new 20-storey building with two basements called Raffles Specialist Centre. The new building was developed at a total estimated cost of S$310 million and yields a gross floor area of around 520,000 square feet when taken together with the existing hospital. The combined premises offer “opportunities to expand capacity, increase the breadth and depth of specialties in various disciplines, and to develop new services”.
With Raffles Specialist Centre in operation, the existing Raffles Hospital building will be renovated to “refurbish and expand patient wards so as to meet growing demands for inpatient services”.
Beyond our shores, RMG is developing a 400-bed international general hospital in Shanghai, and a 700-bed international tertiary general hospital in Chongqing. The projects are “progressing well”, and the hospitals are scheduled to open in the second half of 2019, and the fourth quarter of 2018, respectively. Recruitment exercise has already started for Raffles Hospital Chongqing.
The following shows an artist’s impression of Raffles Hospital Chongqing:
Source: Raffles Medical Group 2017 annual report
In Hong Kong, two company clinics have been added at a leading bank. Raffles Medical Hong Kong also relocated its clinic in Tai Koo Place on Hong Kong Island to Tsim Sha Tsui in Kowloon.
Raffles Health started an e-commerce platform in 2017 to make “healthcare more accessible to patients”. In its website, www.raffleshealth.com, patients can purchase selected medical services such as health screening packages and vaccinations.
In his chairman’s message, Dr Loo Choon Yong gave some colour to his firm’s digitalisation efforts:
“Making our services more accessible for our patients, we have embarked on several digital initiatives in the year. For the convenience of our customers and patients, our e-commerce platform offers Raffles Health supplements, vaccinations and health screening services online. To better serve our patients, we introduced a SMS-digital queue system in our Raffles Medical branches. As a Group, we will continue to leverage on technology to transform our business to serve our patients and corporate clients better.”
Increasing presence in Singapore’s airports
In Singapore’s Changi Airport Terminal 4, a new MediConcierge service was introduced. The service allows real-time medical advice to be given by doctors and nurses to its users. RMG was also chosen by the Ministry of Health and the Civil Aviation Authority of Singapore in 2017 to provide temperature screening for travellers at Changi and Seletar airports.
The Foolish takeaway
Raffles Medical Group is expanding in both Singapore and overseas. It would be interesting to watch how the expansions pan out in the years ahead, and how much more in terms of net profit they contribute to the group.
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Editor's note: Errors in the opening dates of the two hospitals in China has been corrected.
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Raffles Medical Group Ltd. The Motley Fool Singapore contributor Sudhan P owns shares in Raffles Medical Group Ltd.