Operations Review Malaysia IHH is one of the largest private healthcare providers in Malaysia. We provide clinical services and ancillary care through our extensive network of four Gleneagles hospitals, 11 Pantai hospitals, Prince Court Medical Centre, Pantai Integrated Rehab and primary care clinic Twin Towers Medical Centre. All 16 hospitals are accredited by the Malaysian Society for Quality in Health (MSQH); of these, three are also accredited by the Joint Commission International (JCI). Performance Indicators Financial FY2022 FY2023 Revenue RM3.1 billion1 RM3.7 billion EBITDA RM846.8 million1 RM937.3 million Operational Average occupancy 63% 72% Inpatient admissions 205,459 241,123 Average revenue per inpatient admission RM9,587 RM9,925 Performance Highlights • Strong growth in inpatient volume and revenue due to higher domestic and foreign admissions and higheracuity cases. • Improved medical outcomes and care for patients attributed to ValueDriven Outcomes (VDO) initiatives. For example, our dedication to VDO has led to significant enhancements in colonoscopy procedures. With better bowel preparation through education, tracking of caecal intubation rates and withdrawal time, we have achieved a remarkable 50% polyp detection rate and 27% adenoma detection rate, surpassing international benchmarks. These improvements increase the detection and removal of adenomas during colonoscopy, hence reducing the risk of colorectal cancer and can lead to better patient outcomes, including reduced mortality rates associated with the disease. • Completed the acquisition of Timberland Medical Centre in Central Kuching, Sarawak in February 2024. This acquisition allows IHH Malaysia to expand its range of quality healthcare offerings in East Malaysia. • IHH Malaysia signed a memorandum of understanding (MOU) with Pelaburan Hartanah (PH) to develop a new medical block adjacent to Gleneagles Hospital Kuala Lumpur (GKL). Postexpansion, GKL will be one of the largest private hospitals in Malaysia by 2027, with over 700 beds in a single location. Outlook The Malaysian healthcare sector is poised for significant growth, following the government’s unveiling of Budget 2024. The budget allocates RM41.2 billion to the Health Ministry, marking a substantial 13.5% increase from the previous year. With the introduction of the Health White Paper (HWP), it paves the way for increased public-private collaborations and rerouting of medical cases to private operators such as IHH Healthcare, thus easing over-crowding in public healthcare institutions. We believe the medium-term prospect of the Malaysian healthcare sector will remain intact, supported by increasing demand for medical services due to an ageing population. In anticipation of an increase in patient volume and occupancy rates, IHH is strategically planning to expand its capacity by adding 1,300 beds to its hospitals over the next five years. Concurrently, IHH will continue to explore earnings-accretive merger and acquisition opportunities within its clusters to further strengthen its market position and enhance its service offerings. IHH has also set aside approximately RM1.0 billion for capital expenditure to upgrade and uplift its hospitals in Malaysia over the next five years. 1 FY2022’s revenue and EBITDA numbers have been restated as Labs is carved out as a separate business segment in FY2023. IHH Healthcare Berhad 36 Strategic Report
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