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BUSINESS REVIEW
Hospital operations
Much Potential for Aged Care Facility
While the Aged Care Facility segment
registered a 367% increase in revenue
to RM30.8 million in 2012 (2011: RM6.6
million), it reported a loss of RM5 million. In
the preceding year, Jeta Gardens had only
reported one month of revenue as it was
acquired on 30 November 2011. Going
forward, we are confident about our venture
in this segment over the long-term as there is
much potential for the Jeta Gardens business
model to be replicated elsewhere in the
region.
Strategic Developments in 2012
In 2012, the Group embarked on a number
of strategic moves in Malaysia and abroad to
strengthen our position in the region.
Our acquisition of a 23.37% stake in Vejthani
Hospital PLC, Thailand bodes well for our
medical tourism ambitions in the region.
This 263-bed, multidisciplinary specialist
hospital located in Bangkok has gained the
name “King of Bones and Joints”. It serves
more than 300,000 patients yearly and
50% of them are international patients from
more than 40 different countries. Aside from
strengthening KPJ’s footprint in Southeast
Asia, this acquisition is also enabling us to
leverage on Vejthani’s wealth of medical
tourism knowledge and skills to increase
our medical tourism revenue to 25% of the
Group’s revenue by 2020.
The acquisition of the remaining 49% equity
interest in KPJ Sabah Specialist Hospital
in 2012 is a strategic move that will allow
the Group to strengthen its foothold in East
Malaysia. Phase 1 of SMC’s new hospital
building was completed in February 2013
and it is expected to begin operations with
an 80-bed capacity by the second quarter of
2013.
In the final quarter of 2012, KPJ Ampang
Puteri Specialist Hospital and KPJ Seremban
Specialist Hospital both attained Joint
Commission International (JCI) accreditation.
This accreditation underscores KPJ’s
commitment to upholding international
standards and best practices in the areas of
process improvement and patient safety.
In December 2012, the KPJ Group’s
headquarters was relocated to Menara 238
along Jalan Tun Razak, Kuala Lumpur. We
are currently leasing this property with an
option to purchase later on. Our new premise,
which takes up approximately 79,500 square
feet and is spread out over five levels, is
serving as a one-stop centre for all the
Group’s corporate services. Our hospitals
and subsidiaries can now obtain support and
advice more effectively now our back-end
support is all under one roof.
The year also saw us undertaking the
proposed acquisition of Sri Manjung
Specialist Centre Sdn Bhd at RM14.25
million, while we completed the acquisition
of an 80% shareholding in PT KPJ Medika
(which runs Rumah Sakit Medika Permata
Hijau) from Johor Corporation.
In early 2013, Tawakkal Health Centre
(THC), an ambulatory care centre located in
the building formerly occupied by Tawakkal
Hospital along Jalan Pahang, Kuala Lumpur
opened its dental centre and dialysis
services. The dental centre offers a wide
range of dental treatments while the 14-
bay dialysis service has a capacity of up to
42 dialysis bays, including private rooms
for patients who prefer privacy during their
treatment. THC complements the Group’s
main hospital services offering and will cater
to KPJ’s existing patients and new patients
who only require outpatient treatment. THC
also encompasses a rehabilitation centre,
pharmacy, diagnostic imaging services,
consultants’ suites, a minor operation theatre,
Tawakkal Senior Living Care and 14 retail
lots, all of which are expected to be launched
in 2013.
Annual Report
2012
KPJ Healthcare Berhad