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Annual Report 2013
KPJ HEALTHCARE BERHAD
102
Strong Ancillary Services Growth
In 2013, revenue from the Group’s Ancillary
Services segment improved by 14% to RM780.0
million in comparison to revenue of RM684.7
million previously. As per the previous year,
the higher revenue was mainly due to a
growth in activities relating the marketing and
distribution of pharmaceutical, medical and
surgical products, as well as higher demand for
pathology and laboratory services, all of which
grew in tandem with the increased revenue
from the Group’s hospitals.
Within the Ancillary Services segment
incorporating Pharmaserv Alliances Sdn
Bhd and Lablink Sdn Bhd, KPJ’s intrapreneur
companies and other subsidiaries also
contributed positively towards the Group’s 2013
performance.
Key Strategic Developments
In 2013, the Group embarked on a number of
strategic moves to strengthen our position in
the region.
We brought the acquisition of a 100% stake
in Sri Manjung Specialist Centre Sdn Bhd (Sri
Manjung) to a close in May 2013 to effectively
strengthen our foothold in the area. Plans to
add another 90 beds to Sri Manjung’s existing
30 through future expansion will strategically
position this hospital for long-term growth.
May 2013 also sawKPJ Pasir Gudang Specialist
Hospital opening its doors to the public. It is
expected to draw a good response from the
surrounding community given its strategic
location within the Pasir Gudang industrial
area as well as the area’s substantial working
population.
The relocation of the KPJ Sabah Specialist
Hospital to a new building is also expected to
extend our footprint in East Malaysia. The new
facility began operating in December 2013 with
an 70-bed capacity and is expected to be a
strong draw to communities in the area given its
range of specialist services and the expertise of
its consultants.
Back in December 2012, the KPJ Group
relocated its headquarters to Menara 238
along Jalan Tun Razak, Kuala Lumpur with an
option to purchase the building. On 16 October
2013, KPJSB exercised its option to purchase
the property and entered into a conditional
sale and purchase agreement for a total cash
consideration of RM206 million. The acquisition
was completed on 10 February 2014. The
Group’s hospitals and subsidiaries continue
to take advantage of support and advice more
readily with the Group’s back-end support
services all under one roof.
In 2013, the Group also intensi ed efforts
to review, streamline and standardise its
operational processes. We are continuously
monitoring enhancements to operational
ef ciency, the effectiveness of implementation
as well as compliance with standardised
practices as part of our commitment to
developing a stronger service excellence
culture within the Group.
March 2014 saw the KPJ Rawang Specialist
Hospital in Selangor kick-starting its operations.
The acquisition of the KPJ Rawang Specialist
Hospital in Selangor is a strategic move which
will allow the Group to seize the good potential
from the massive economic development in the
area.
Business
Review
H
ospital Operations
3 new hospitals
helped boost revenue:
KPJ Klang Specialist
Hospital, KPJ Pasir
Gudang Specialist
Hospital and Sri Manjung
Specialist Centre.