Raffles Medical's profit dropped 15.2% to $60.27m in 2019

Profits were hit by gestation loss for Raffles Hospital Chongqing.

Raffles Medical Group (RMG) saw a 15.2% drop in its profit to $60.27m in 2019, from $71.06m in 2018, according to its financial results. Revenues, meanwhile, grew by 6.7% to $522.04m for the year, compared to $489.14m in 2018.

RMG’s net profit after tax for 2019 fell 14.5% to $60.5m due to the gestation loss for RafflesHospital Chongqing (RHCQ). The gestation loss for RHCQ was $9.2m at the EBITDA level.

The Healthcare Services division posted a 9% growth in revenue to $238.72m in 2019. The growth was attributable to an increase in corporate clients and greater scope of services for existing and new insurance contracts

Meanwhile, full-year revenue from the Hospital Services division similarly increased with a 5.9% jump to $306.43m, compared to $289.42m in 2018. The revenue’s expansion was driven by higher patient load.

Raffles Medical has added Waterway Point to its Raffles Health Screeners portfolio, increasing the number of executive health screening centres to 5 in Singapore.

Raffles Hospital Chongqing, on the other hand, is now operating round the clock. The hospital has also obtained approval to be one of the designated hospitals covered by China’s social health insurance scheme (Yibao).

Meanwhile, preparations are on track to enable Raffles Hospital Shanghai for operations. However, the commencement of operations will be dependent on the on-going situation of the COVID-19 outbreak.