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Business Times
6 days ago
- Business
- Business Times
With medical costs under the microscope, IHH Healthcare group CEO continues to eye expansion
[SINGAPORE] As IHH Healthcare looks to streamline its operations and expand in its current markets, it is also keeping its eyes peeled for opportunities to grow in new countries, said group chief executive Dr Prem Kumar Nair. When Dr Nair took over the role of group CEO in 2023, he aimed to transform the company to become leaner so that it can continue to grow. 'This is a group that has grown by M&A (mergers and acquisitions) – every time we buy something or we expand, we try to synergise as much as possible… but what happens is, over a period of time, the red tape and bureaucracy build up,' he said. But he noted that 'most of (the) countries (where it operates) have got scope for expansion' by adding hospital beds, or acquiring new hospitals, or building ambulatory care centres. The healthcare operator, which has a presence in 10 countries including Singapore, Malaysia, India, Turkey and China, has grown steadily over the years by acquiring new hospitals. In 2024, it bought Island Hospital in Penang and Timberland Medical Centre in Kuching, Sarawak. Before that, its Indian subsidiary Fortis also bought two hospitals, while its Turkish subsidiary Acibadem Healthcare expanded into East Europe. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Its acquisitions aim to be earnings accretive. For example, Dr Nair said, Island Hospital added 'a new dimension' to its Malaysian operations, with 60 per cent of its patients being medical tourists. To expand in a more cost-efficient manner, it is looking at brownfield expansion – or adding beds – for markets with bigger land space, such as Malaysia and India. The group has a five-year plan to add 4,000 beds, or 33 per cent of capacity, by 2028. By 2024, it had already added 1,004 beds across its markets. Meanwhile, in Singapore and Hong Kong, it is moving towards the ambulatory care sector, or what it terms as the 'out-of-hospital' strategy. This is because it is not possible to open more private hospitals in these two markets, due to regulations, high costs and lack of space, Dr Nair said. Nevertheless, he noted several similarities in healthcare that can be dealt with at the group level. 'The truth is, a lot of healthcare is the same – (such as) licensing of doctors, accreditation of specialists, nurse licensing, building controls,' he said. 'What we try to standardise are things that may have some variation – quality is one area where we feel that we need to have some standardisation because we want the same outcomes.' By ensuring that patients are able to achieve the same results wherever they choose to engage with the group, Dr Nair said, this will push the group from being just a leader in business to a leader in healthcare services. Medical inflation, insurance premiums Dr Nair noted that as a group, it sees issues that may turn up in different markets from time to time. In 2024, Malaysia went through a bout of medical inflation that likely caused the group 'some softening' in patient admissions and revenue. In June 2025, insurer Great Eastern temporarily suspended pre-authorisation certificates for IHH Healthcare's Mount Elizabeth Hospitals, citing higher costs compared to other private hospitals. Dr Nair noted that payer-provider issues are not new to the healthcare industry, nor to the group. He added that the company is likely 'the most risk diversified healthcare group in the world', operating in 10 countries from the far east to the west. 'We are a heavily regulated industry, and we will continue to be – and it's good because we are dealing with people's lives,' he said. But costs are a perennial issue for an industry that should not compromise quality for price. Hence, to manage costs, Dr Nair said, IHH Healthcare tries to procure equipment at the group level. Technology, digitalisation and innovation also remain key priorities as the ageing population will likely increase healthcare utilisation and push up healthcare costs. Looking ahead, Dr Nair noted that the group is already operating at an average capacity of more than 70 per cent – 'fairly high' for a private hospital – so it needs to continue expanding. He also noted opportunities in Indonesia and Vietnam – two new markets in South-east Asia where the hospital operator is already operating. 'Our preference would be for continued growth in (our existing) countries… but as a responsible global healthcare group, we will have to look at opportunities down the road.'
Yahoo
09-07-2025
- Business
- Yahoo
IHH Healthcare pursues expansion in Indonesia and Vietnam
Malaysian hospital operator IHH Healthcare has set its sights on expansion into Indonesia and Vietnam to boost its scale amid escalating care expenses in the region, as reported by Bloomberg. Indonesia's healthcare reforms and relaxed foreign ownership rules, along with Vietnam's burgeoning market present new opportunities for growth, stated IHH Healthcare CEO Prem Kumar Nair. Prem Kumar Nair said: 'We get a lot of patients from Vietnam into our Singapore operations.' IHH runs over 80 hospitals across ten countries, encompassing Singapore, India, and China. The hospital operator is on an acquisition spree, having recently added Island Hospital in Malaysia to its portfolio in 2024. Its subsidiaries, Acibadem in Turkey and Fortis Healthcare in India have also expanded by purchasing additional hospitals in the past two years. IHH has a market capitalisation of $14bn. The group is tackling the challenge of rising import costs by bulk procurement of medical equipment, consumables, and generic medications, highlighted the news agency. This strategy aims to reduce the financial burden of imported goods, according to Nair. In China, IHH is focusing on solidifying its presence. The company has transitioned its clinic business into a profitable venture and is witnessing an increase in patient numbers at its Shanghai hospital. Despite China easing foreign investment restrictions in the healthcare sector, IHH remains cautious about further expansion, given the strong competition from the public sector, as further outlined by Bloomberg. Nair said: 'In China, the public sector is a very big competitor to private healthcare. 'We are the only foreign operator in China who has a combination of clinics, and an ecosystem, so we will build on it.' The company's growth plans are not limited to new markets. It also intends to increase hospital bed capacity by 33% from 2024 through 2028 in existing markets, adding 4,000 beds. For the first quarter, IHH reported a revenue of MYR6.29bn ($1.48bn), a 5.7% rise from the previous year. However, its profit dropped 33% to MYR514m, due to exceptional accounting adjustments. While Turkey, Singapore, and Malaysia are the current primary revenue sources, the company anticipates India to become a significant contributor due to the growing demand for private healthcare. Nair emphasised the importance of developing out-of-hospital care, such as ambulatory surgical and care centres, to mitigate cost pressures. IHH operates 60 such non-hospital healthcare facilities. While Singapore has established a comprehensive ecosystem and Hong Kong is progressing towards one, Malaysia's regulations currently prevent hospital operators from managing other healthcare facilities. IHH plans to appeal to Malaysia's Health Ministry to change this rule, hoping to expand significantly into the out-of-hospital sector. "IHH Healthcare pursues expansion in Indonesia and Vietnam" was originally created and published by Hospital Management, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
09-07-2025
- Business
- The Star
IHH Healthcare eyes Indonesia, Vietnam for expansion
IHH Healthcare Bhd group chief executive officer Dr Prem Kumar Nair. — FAIHAN GHANI/The Star IHH Healthcare Bhd . is looking to potential new markets Indonesia and Vietnam as the Malaysian hospital operator continues building scale to offset rising healthcare costs in the region. Indonesia is attractive, thanks to its healthcare reforms and foreign ownership relaxation, while Vietnam has emerged as a booming market, according to Chief Executive Officer Prem Kumar Nair. "We get a lot of patients from Vietnam into our Singapore operations,' he said in an interview in Kuala Lumpur this week. The company currently operates more than 80 hospitals in 10 countries, including Singapore, India and China, and has been actively acquiring healthcare facilities in recent years. It bought Island Hospital Sdn. Bhd. in Malaysia in 2024. Its Turkish unit Acibadem and Indian affiliate Fortis Healthcare also purchased hospitals in their respective markets in the last two years. The company has $14 billion in market capitalization and is the most valuable listed hospital operator in Southeast Asia. The desire to widen expansion in the region comes as IHH looks to make up for rising import costs in the industry. The group is now procuring medical equipment, consumables and generic medications in bulk to cut costs on imported items, Prem Kumar said. IHH is also planning to consolidate its presence in China, according to Prem Kumar. It turned its clinic business into a profitable operation and is seeing rising number of patients at its hospital in Shanghai. Still, China's decision to ease restrictions on foreign investment in healthcare sector will not immediately sway IHH into expanding further in the world's second-largest economy. "In China, the public sector is a very big competitor to private healthcare,' he said. "We are the only foreign operator in China who has a combination of clinics, and an ecosystem, so we will build on it.' Read: China Opens More Manufacturing, Health Care to Foreign Money The company's priorities also include tapping growing opportunities in existing markets, where it's already committed to expanding hospital bed capacity by 33% from 2024 through 2028 - a 4,000 bed target. "There's no dearth of opportunities in the countries we operate,' he said. Beyond Hospitals IHH booked 6.29 billion ringgit ($1.48 billion) in first-quarter revenue, an increase of 5.7% from a year ago. Its profit slid 33% to 514 million ringgit, which the company attributed to exceptional accounting adjustments. Singapore, Turkey and Malaysia are currently its main revenue drivers, but the company expects India to become a major contributor in the coming years amid booming demand for private healthcare. With 35 hospitals, India already has IHH's biggest in-country network. Prem Kumar said he was focused on growing out-of-hospital care in IHH's markets - including ambulatory surgical and care centers, along with primary care centers - to help control cost pressures. The group currently operates 60 healthcare facilities that aren't hospitals. "If we depend on hospitals alone, healthcare costs are going to rise tremendously,' he said. Singapore already has such an ecosystem in place while Hong Kong is headed in that direction, Prem Kumar said. Still, its home market of Malaysia doesn't allow hospital operators to also run other healthcare facilities. IHH plans to make representations to Malaysia's Health Ministry in hopes the rule will be changed. "We definitely want to move, in Malaysia, into the out-of-hospital sector in a big way as well,' he said. IHH shares have declined 8.4% so far this year, while Malaysia's benchmark stock index has fallen around 7% amid concerns over US tariffs. - Bloomberg
Straits Times
09-07-2025
- Business
- Straits Times
Singapore-listed hospital operator IHH eyes Indonesia, Vietnam for expansion
Sign up now: Get ST's newsletters delivered to your inbox In Singapore, IHH operates 793 beds across four hospitals – Gleneagles Hospital (above), Mount Elizabeth Hospital, Mount Elizabeth Novena Hospital and Parkway East Hospital. Kuala Lumpur – IHH Healthcare is looking to potential new markets Indonesia and Vietnam as the Malaysian hospital operator continues building scale to offset rising healthcare costs in the region. Indonesia is attractive, thanks to its healthcare reforms and foreign ownership relaxation, while Vietnam has emerged as a booming market, according to chief executive officer Prem Kumar Nair. 'We get a lot of patients from Vietnam into our Singapore operations,' he said in an interview in Kuala Lumpur this week. In Singapore, IHH operates 793 beds across 4 hospitals – Gleneagles Hospital, Mount Elizabeth Hospital, Mount Elizabeth Novena Hospital and Parkway East Hospital, according to its website. It also has 30 Parkway Shenton clinics, as well as other specialty and ancillary services. The company currently operates more than 80 hospitals in 10 countries, including India and China, and has been actively acquiring healthcare facilities in recent years. It bought Island Hospital in Malaysia in 2024. Its Turkish unit Acibadem and Indian affiliate Fortis Healthcare also purchased hospitals in their respective markets in the last two years. The company has US$14 billion (S$17.9 billion) in market capitalisation and is the most valuable listed hospital operator in South-east Asia. The desire to widen expansion in the region comes as IHH looks to make up for rising import costs in the industry. The group is now procuring medical equipment, consumables and generic medications in bulk to cut costs on imported items, Mr Prem Kumar said. Top stories Swipe. Select. Stay informed. Asia Why Japan and South Korea are on different paths in the latest US trade salvo World Trump says steep copper tariffs in store as he broadens his trade war Opinion Is Donald Trump unstoppable? Opinion Hyper-competitive classrooms feed the corporate world's narcissist pipeline Singapore Man charged after he allegedly threw glass bottle at bus window, injuring passenger Business 'It's our grandfather's company, we won't sell', says Wong family as shareholders reject GE delisting bid Singapore Police officer taken to hospital after motorcycle accident on PIE Asia Ex-Malaysian PM Najib's wife Rosmah awarded $30,000 in suit against TikToker IHH is also planning to consolidate its presence in China, according to the CEO. It turned its clinic business into a profitable operation and is seeing rising number of patients at its hospital in Shanghai. Still, China's decision to ease restrictions on foreign investment in healthcare sector will not immediately sway IHH into expanding further in the world's second-largest economy. 'In China, the public sector is a very big competitor to private healthcare,' said Prem Kuma. 'We are the only foreign operator in China who has a combination of clinics, and an ecosystem, so we will build on it.' The company's priorities also include tapping growing opportunities in existing markets, where it's already committed to expanding hospital bed capacity by 33 per cent from 2024 through 2028 – a 4,000 bed target. 'There's no dearth of opportunities in the countries we operate,' he said. Beyond hospitals IHH booked RM6.29 billion ringgit (S$1.9 billion) in first-quarter revenue, an increase of 5.7 per cent from a year ago. Its profit slid 33 per cent to RM514 million, which the company attributed to exceptional accounting adjustments. Singapore, Turkey and Malaysia are currently its main revenue drivers, but the company expects India to become a major contributor in the coming years amid booming demand for private healthcare. With 35 hospitals, India already has IHH's biggest in-country network. Mr Prem Kumar said he was focused on growing out-of-hospital care in IHH's markets – including ambulatory surgical and care centres, along with primary care centres – to help control cost pressures. The group currently operates 60 healthcare facilities that aren't hospitals. 'If we depend on hospitals alone, healthcare costs are going to rise tremendously,' he said. Singapore already has such an ecosystem in place while Hong Kong is headed in that direction, Mr Prem Kumar said. Still, its home market of Malaysia doesn't allow hospital operators to also run other healthcare facilities. IHH plans to make representations to Malaysia's Health Ministry in hopes the rule will be changed. 'We definitely want to move, in Malaysia, into the out-of-hospital sector in a big way as well,' he said. Dual-listed IHH shares in Malaysia have dropped 8.4 per cent so far in 2025, while the Kuala Lumpur stock index has fallen around 7 per cent amid concerns over US tariffs. Its Singapore shares were trading at $2.03 as at 10.57am on July , down 7.3 per cent for the year. BLOOMBERG
Business Times
09-07-2025
- Business
- Business Times
Hospital operator IHH eyes Indonesia, Vietnam for expansion
[KUALA LUMPUR] IHH Healthcare is looking to potential new markets Indonesia and Vietnam as the Malaysian hospital operator continues building scale to offset rising healthcare costs in the region. Indonesia is attractive, thanks to its healthcare reforms and foreign ownership relaxation, while Vietnam has emerged as a booming market, according to chief executive officer Prem Kumar Nair. 'We get a lot of patients from Vietnam into our Singapore operations,' he said in an interview in Kuala Lumpur this week. The company currently operates more than 80 hospitals in 10 countries, including Singapore, India and China, and has been actively acquiring healthcare facilities in recent years. It bought Island Hospital in Malaysia in 2024. Its Turkish unit Acibadem and Indian affiliate Fortis Healthcare also purchased hospitals in their respective markets in the last two years. The company has US$14 billion in market capitalisation and is the most valuable listed hospital operator in South-east Asia. The desire to widen expansion in the region comes as IHH looks to make up for rising import costs in the industry. The group is now procuring medical equipment, consumables and generic medications in bulk to cut costs on imported items, Prem Kumar said. IHH is also planning to consolidate its presence in China, according to Prem Kumar. It turned its clinic business into a profitable operation and is seeing a rising number of patients at its hospital in Shanghai. Still, China's decision to ease restrictions on foreign investment in the healthcare sector will not immediately sway IHH into expanding further in the world's second-largest economy. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 'In China, the public sector is a very big competitor to private healthcare,' he said. 'We are the only foreign operator in China who has a combination of clinics, and an ecosystem, so we will build on it.' The company's priorities also include tapping growing opportunities in existing markets, where it's already committed to expanding hospital bed capacity by 33 per cent from 2024 to 2028, a 4,000 bed target. 'There's no dearth of opportunities in the countries we operate,' he said. Beyond hospitals IHH booked RM6.3 billion (S$1.9 billion) in first-quarter revenue, an increase of 5.7 per cent from a year ago. Its profit slid 33 per cent to RM514 million, which the company attributed to exceptional accounting adjustments. Singapore, Turkey and Malaysia are currently its main revenue drivers, but the company expects India to become a major contributor in the coming years amid booming demand for private healthcare. With 35 hospitals, India already has IHH's biggest in-country network. Prem Kumar said he was focused on growing out-of-hospital care in IHH's markets, including ambulatory surgical and care centers, along with primary care centres, along with primary care centres, to help control cost pressures. The group currently operates 60 healthcare facilities that are not hospitals. 'If we depend on hospitals alone, healthcare costs are going to rise tremendously,' he said. Singapore already has such an ecosystem in place while Hong Kong is headed in that direction, Prem Kumar said. Still, its home market of Malaysia does not allow hospital operators to also run other healthcare facilities. IHH plans to make representations to Malaysia's Health Ministry in hopes the rule will be changed. 'We definitely want to move, in Malaysia, into the out-of-hospital sector in a big way as well,' he said. IHH shares have declined 8.4 per cent so far this year, while Malaysia's benchmark stock index has fallen around 7 per cent amid concerns over US tariffs. BLOOMBERG
