Kuala lumpur: IHH Healthcare Bhd is strategically leveraging artificial intelligence, operational efficiency, and expanding its ambulatory care services to manage escalating medical inflation without transferring the bulk of costs onto its patients. Group chief executive officer Dr Prem Kumar Nair highlighted that although medical inflation in various markets is at double-digit percentage levels, the group has managed to limit price hikes to approximately two to three percent.
According to BERNAMA News Agency, Dr Nair explained that while medical inflation is significant across all countries, with Singapore experiencing particularly high rates, IHH Healthcare has capped its price increases significantly lower than the inflation rate. This has been achieved through medical innovations, improved procurement processes, technology adoption, and enhancing workforce efficiency, allowing the group to maintain strong performance despite the rising costs.
Group chief financial officer Dilip Kadambi emphasized IHH Healthcare's investment in ambulatory care centres and daycare facilities across Malaysia, Singapore, Hong Kong, and China. These centres provide similar patient outcomes at reduced costs compared to inpatient hospital settings. Kadambi noted that technological advancements have made it feasible to perform many procedures safely in a daycare setting, which significantly reduces costs and capital expenditure compared to traditional hospital setups.
Addressing the impact of geopolitical tensions on pharmaceutical supply chains, Kadambi stated that most of the group's medical supplies are sourced within Asia, with only a small portion imported from Europe and the United States. He further mentioned that IHH Healthcare plans to continue its growth with reduced capital expenditure, supported by investments in ambulatory and daycare centres, with a planned capital expenditure of RM2 billion to RM2.5 billion this year, down from RM3.5 billion the previous year.
Amid the challenges of rising healthcare costs, group chief medical officer Dr Keith Lim revealed that the group is considering the use of generic medicines as a cost-effective alternative to proprietary drugs. Dr Lim emphasized their commitment to using generic medication wherever possible to reduce costs for both the group and its patients.
Discussing the operations in Turkey, Dr Prem stated that they continue to operate normally with no direct impact from regional conflicts. While there might be minor impacts concerning patients from West Asia, IHH Healthcare's operations in Turkey and Europe remain significant contributors, with ongoing growth opportunities in these key markets.