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HMI posts 1% drop in Q2 profit
HEALTH Management International Ltd (HMI) posted a one per cent dip in net profit for the second quarter ended Dec 31, 2016 to RM5.33 million (S$1.69 million).
Revenue for the period rose 11 per cent to RM106.9 million, mainly led by higher patient load and average bill sizes from the group's two hospitals.
The group's patient load for the quarter increased 5.8 per cent from a year ago to 109,000 patients on the back of consistent healthy growth for both local and foreign patients.
Inpatient and outpatient average bill sizes increased year on year by 7.6 per cent and 4.7 per cent, respectively in the quarter, primarily driven by higher revenue intensity and increased complexity of surgeries. Bed occupancy slipped to 59.2 per cent from 62 per cent a year ago due to an increase in operational beds and the holiday seasons.
With steadily rising patient demand at Regency, HMI will be constructing a new hospital extension block that will more than double existing capacity with more inpatient beds, clinical services, operating theatres, as well as clinical suites for sale or rental to doctors.
Preliminary estimated construction costs of the proposed new block is RM160 million. Construction is expected to take up to two and a half years and is expected to begin in the second half of 2017, pending necessary approvals.
HMI had in November announced its intention to increase its current stake of 48.9 per cent in Mahkota and 60.8 per cent in Regency to 100 per cent for RM556.5 million.
"The proposed consolidation of the ownership in Mahkota and Regency to 100 per cent would create an enlarged listed platform to facilitate our efforts in progressively transforming the group into a major regional healthcare player," said HMI chief executive officer Chin Wei Jia.
Both the proposed consolidation and a rights issue exercise are subject to approval of HMI's shareholders at an extraordinary general meeting to be held on Friday.