- Revenue up 7%, abt 4M
- Staff costs, the largest cost component, only up 4%, or 1M
- 17% increase in purchased and contracted services (approx 600K), mostly due to insurance claims. Partially offset by a 4.5% decrease in consumables.
- Profit before tax up 21%. 1Q09 EPS was 1.50c
My only concern:
Medical insurance is a completely different business from providing healthcare:
- Medical insurance may leave you with a lot of potential liabilities, especially when you offer worldwide coverage. Indeed, the business of medical insurance is to cover such unexpected liabilities. It is hard, mabye even impossible, to get a picture of such potential liabilities from a balance sheet.
- This is more so when the insurance business results are consolidated with those of healthcare and hospital.
- CIMB report (11th Mar) says they expect Raffles Hospital to increase bed capacity from 200 to 220 by 2010.
- (BT article, Friday 17th Apr 09, Chen Huifen) At a media briefing..., Dr Loo said that only 40% of staff costs are fixed. Assume he is referring to the whole group (healthcare plus hospital).