KPJ to focus on digitalisation and telemedicine

The Covid-19 pandemic has steered KPJ Healthcare’s focus towards digital technology and telemedicine as Malaysia's largest private healthcare network operator plugs gaps in the country’s healthcare ecosystem.

President and Managing Director Ahmad Shahizam Mohd Shariff told BFM’s The Breakfast Grille today that the threat of infection has forced health providers to reconsider the way they offer services. Shahizam believes there is still a lot that can be done to enhance the digitalization of KPJ’s services and operations.

“We have started to offer telehealth services and even up to delivering medication to homes. In fact, we are looking at providing more services within the community, including ambulatory care. We need to change our way in how we provide care. We need to go closer to where our patients are,” he said. Ambulatory care or outpatient care is medical care provided on an outpatient basis, including diagnosis, observation, consultation, treatment, intervention, and rehabilitation services.

“We are also expanding in other areas that would allow us to provide our care in different ways as opposed to traditional ways where people come to the hospitals to get treated. For example, we are looking at ways to ensure that there is a lot less need to be in hospitals prior to the point you are being treated,” he added.

Formalities including pre-appointment details and registrations will be done online so that patients don’t have to come into the facility until they are ready for their treatment.

In terms of capital expenditure (capex), the group is running at its usual RM150 million, and since there are no new plans to build more hospitals, Shahizam said the capex can be used to invest in digital solutions.

“We are reaching the harvesting stage of our cycle. We can reap our profits given that there is still a lot that can be done to digitize our operations,” he added.

In the second quarter this year from March to June, Shahizam said KPJ saw the weakest numbers after which a big jump was recorded when the movement restriction was partially lifted.

In the third quarter, KPJ’s net profit grew by 2.7 times to RM33.97 from RM12.66 million in the previous quarter on improved hospital business activities, following the loosening of the movement control (MCO) from June 10.

“What was most obvious was the number of surgeries. We saw surgery actually jumping by 52% in the third quarter, which is quite a significant increase and we believe it is a continuation of what we saw right after the initial MCO was loosened, primarily because people who delayed their treatment or even elective procedures, decided to come back and proceed.”

“We witnessed a continued gradual recovery, yet the challenge lies in the restrictions within the hospitals due to the pandemic, causing people to delay in getting their treatment.”

“Our number of outpatients are rightly down on a year-on-year basis against the number last year. We are still down about 10% for the nine months this year, and in terms of inpatients, about 23%,” he said.

Year to date, the group’s number of staff has remained constant but doctors were added, according to Shahizam, adding that the group foresees 2021 to form a recovery.

In terms of its overseas operations, Shahizam said the challenges caused by the Covid-19 and changes in Australia’s aged care industry, is causing the group to potentially exit the market.

“I think overall, overseas ventures are less impactful in terms of size and significance, so I think our decisions are to ensure the core drivers of the growth are pretty much domestic,” he added.

KPJ has a 57% stake in Jeta Gardens, an aged care center and retirement village in Queensland. Its property is owned by Al-’Aqar Healthcare Real Estate Investment Trust, in which KPJ has an indirect 39.25% stake.

KPJ’s share price rose 1.5% to close at RM1.01, valuing the company at about RM4.5 billion.