How will Raffles Med cope as medical tourists vanish?

Local patients are now key.

The prospect of dwindling medical tourist numbers is looming over Raffles Med. A report by Maybank Kim Eng highlighted that while Raffles Med believes it can ride out the medical tourism slump, investors are wary over the group’s increasing reliance on local patients.

At Maybank’s recent investor conference, Raffles Med appeared confident of its edge over new private hospitals such as Farrer Park Hospital, and noted that there is no direct competition with public hospitals where subsidised beds are filled up very quickly.

Its management highlighted that local patients contribute around 70% to its hospital revenue, and its diversified foreign patient base should also mitigate any drop in medical tourists from any market.

However, investors were still cautious given its overreliance on an increasingly expensive Singapore.

“Clients were impressed with its track record, brand strength and group practice. However, some were cautions about its overreliance on Singapore, which has a stronger currency than the region. This could deter foreign patients from seeking treatment in Singapore,” stated Maybank Kim Eng.