KPJ Healthcare Berhad - Annual Report 2018

OUR BUSINESS & STRATEGY OUR PERFORMANCE AND OUTLOOK OUR RESULTS OUR GOVERNANCE APPENDICES ABOUT THIS REPORT 45 KPJ HEALTHCARE BERHAD www.kpjhealth.com.my MATERIAL MATTERS FACTORS AFFECTED STAKEHOLDER GROUPS LINK TO STRATEGIC THRUSTS LINK TO KEY RISK & OPPORTUNITY Government Regulations • Strict licensing regime under the Private Healthcare Facilities and Services Act 1998 • Cost of compliance with stringent regulations on licensing of hospital facilities, staffing ratios, quality standards, security of medical records, occupational safety & health • Government & Regulators, Intermediaries, Patients, Employees & Consultants, Investors & Shareholders • Government Policy & Compliance with laws, regulations and other applicable requirements Quality of Service Standards • Patient-centric, qualified and experienced healthcare professionals • Strict adherence to government regulations, accreditation standards and KPJ Clinical Governance Framework • Patients, Intermediaries, Employees & Consultants, Investors & Shareholders • Clinical care • Compliance with accreditation requirements • Ensuring availability of Key Medical staff & Consultants • Insurance Management Funders for Healthcare Services • Intermediaries like private insurance companies, managed care organisations and corporate employers constitute around 70% of hospitals revenue • Patients with medical insurance cards or undertaking letters from employers are able to be treated at any KPJ hospital nationwide • Collectively, these intermediaries have strong bargaining power on how much KPJ can charge for services, hence influencing KPJ revenue and market share • Patients, Employees & Consultants, Investors & Shareholders, Intermediaries • Clinical Care • Integrity & Ethics 07 07 07 05 05 03 03 06 06 01 02 02 02 04 MATERIAL MATTERS