KPJ Healthcare Berhad - Annual Report 2018

OUR BUSINESS & STRATEGY OUR PERFORMANCE AND OUTLOOK OUR RESULTS OUR GOVERNANCE APPENDICES ABOUT THIS REPORT 71 KPJ HEALTHCARE BERHAD www.kpjhealth.com.my OPERATIONAL REVIEW IN 2018 , KPJ DEL I VERED ROBUST PERFORMANCE AS A RESULT OF SUSTA INED FOCUS ON OUR SEVEN STRATEGIC THRUSTS TO CREATE VALUE FOR OUR SHAREHOLDERS AND STAKEHOLDERS FOR THE SHORT, MEDIUM AND LONG-TERM. Our resilient business model which is founded on strong fundamentals and value added propositions, has enabled the Group to retain our market position as the leading healthcare provider in Malaysia, whilst driving through our vision of being The Preferred Healthcare Provider. KPJ’s strong healthcare value proposition and relentless focus on providing the highest quality of patient centric healthcare services have been crucial factors in the Group’s continued success within our regional footprint of Indonesia, Bangladesh, Thailand and Australia. Information on our healthcare value ecosystem can be found within the About KPJ section on pages 10 to 12 of this IR. For an overview of how we created value using our six capitals in 2018, please refer to our Value Creation Model in the How We Create Value section on pages 14 to 27 of this IR. Our activities within our different business segments for the year were conducted with the intent of driving through our seven strategic thrusts. Details of our strategic thrusts can be found within the Group Strategy section on pages 28 to 29 of this IR. Further information on all sustainability related developments within the Economic, Environmental and Social materiality are in our standalone Sustainability Report. HOSPITAL NETWORK DEVELOPMENT In 2018, we sustained our focus on the development of new hospitals to expand our market presence, as well as retrofitting and expanding our existing hospitals to cater to greater market demand. This approach ensures that we remain ahead of the curve in capturing opportunities within the private healthcare sector in Malaysia, leveraging on our brand recognition and high quality medical treatments and services rendered. KPJ added two new hospitals to our healthcare network with the opening of KPJ Perlis in Kangar and KPJ Bandar Dato’ Onn in Johor Bahru bringing our total number of hospitals in Malaysia to 26 from 25 the previous year. This was due to the merger conducted between KPJ Sabah and KPJ Damai during the year. We conducted a merging exercise between KPJ Sabah and KPJ Damai during the year, in line with our hospital operations restructuring plan to achieve greater efficiencies and maximise profitability of both hospitals. Following the merger, operations at KPJ Damai were transferred to KPJ Sabah with effect from 1 June 2018. Post-merger, KPJ Sabah is now operating with 103 beds, 40 resident consultants and 445 staff. With the merger, KPJ Damai’s brand name was changed to Damai Wellness Centre, in line with venturing into new niche segment of Senior & Assisted Living Care, Confinement Care and Rehabilitation Services. We expanded capacities in terms of bed numbers at five hospitals namely KPJ Johor, KPJ Klang, KPJ Bandar Maharani, KPJ Pasir Gudang Specialist and KPJ Ampang Puteri to cater for more demand within these areas. Moving into 2019, we plan to launch four new hospitals currently under development, namely KPJ Batu Pahat, KPJ Kluang Utama, KPJ Miri and KPJ Kuching, with further hospital developments slated for 2020 and beyond.