Covid jabs, tests boost demand for medical services at turn of year

Singapore

CLINICS and general practitioners have reported better business in recent months, on the back of booster vaccination jabs and more Covid-19 testing for travel and live events.

Medical industry players to which The Business Times spoke said that they remain cautiously optimistic for their business outlook for the first quarter of 2022.

Such caution is due partly to the continued threat of virus variants such as Omicron, as chief medical officer of Northeast Medical Group (NEMG) Dr Goh Tze Chien Kelvin noted.

This is even as the variant fuels the need for vaccinations and booster shots. Phoenix Medical Group chief executive Dr Chua Hshan Cher named Omicron as one factor that will mean "continued strong demand for Covid-related work".

Clinic groups generally reported better performance in the fourth quarter of 2021, compared both to earlier quarters of the year, as well as Q4 2020.

These include NEMG, which operates 8 physical clinics in Singapore. The group has seen a surge in demand for pre-departure testing, antigen rapid tests, and booster vaccines over the past few months, Dr Goh noted.

He said: "There has also been an obvious trend of returning clinic volumes in view of people returning to work, increased social interactions and activities. The clinic volumes in heartland locations have recovered significantly."

The contribution made by Covid-related services is clear. Dr Goh noted that although business has been recovering, if Covid-related revenue is removed from the equation, it is unlikely that his clinics would have performed as well as pre-Covid levels.

In Q4 2021, Phoenix Medical Group saw quarter-on-quarter growth of 25 per cent, and year-on-year growth of 50 per cent, said Dr Chua.

Besides the Omicron variant, the opening of travel lanes is another continued driver of demand for Covid-related services, he said.

He noted that because travel had been suppressed for close to 18 months, many patients have expressed that Covid testing is a "minor inconvenience" that would not stop them from visiting countries that were previously closed.

"With the likelihood of the Covid-19 threat receding in the near-term future unlikely, the group continues to explore further Covid-related opportunities to grow its business," Dr Chua added.

ProHealth Medical Group, which operates 12 primary care medical clinics in Singapore, also saw a rise in patient numbers and a marginal revenue increase in Q4 2021, compared to earlier quarters of the year, said chief executive Dr Kao Wei-Hsing.

This was due in part to travel-related Covid-19 testing and vaccinations offered at selected ProHealth clinics.

But Dr Kao pointed out that business growth in the past quarter could also have come from the traditional medical-seeking behaviour patterns of some patients, such as those going for annual health check-ups.

He also noted that Q4 2020 represents a low base, with this year's improved performance possibly due to Singapore's move from the stabilisation phase into the transition phase, where Covid-19 is treated as an endemic issue.

The improved Q4 figures should thus be seen in context. Dr Kao said that current figures are still "off tangent" when compared to the pre-Covid year of 2019. "There has been a significant drop in profit margin as we continue to dispense what is most suitable and effective for our patients' care."

But Covid-related and manpower-related government funding has helped to defray business operation costs, he added. Noting that the economic recovery is expected to remain uneven across sectors in 2022, he said: "GP clinic performance will continue to be affected by external factors such as

government and MOH (Ministry of Health) policies relating to Covid-19."