KPJ unit spends RM200m on expansion


KPJ Tawakkal Specialist Hospital (KPJTSH) has allocated RM200 million for a new tower block expansion that will have 320 extra beds when completed by 2022.

The total cost includes building and medical equipment and facilities, according to KPJTSH CEO Muhammad Badri Hussin (picture).

“At the moment, our average occupancy rate is 70%, and usually that number is an indication that expansion is required, so once we increase our capacity, we expect the already existing numbers to double up,” he said at the hospital’s “Special 35” packages launch yesterday in Kuala Lumpur.

He added that the construction works are scheduled to begin at the end of the year.

The new tower block has been designed to have 17 floors, with five floors allocated for patients’ wards, podium and car park to cover the lower floors, two floors for services, and three floors potentially for administration or conference facilities.

The hospital’s medical director Dr Chan Kheng Khim said while the increase appears large enough for the projected increase in occupancy rate within the near future, the hospital will be increasing its number of consultants as well.

“The number of beds may be enough for our patients within the next five to 10 years, at the same time, we will also add another 25 new consultants to the existing numbers and expand most of our services,” he said.

The hospital’s medical consultants currently stand at 63, with eight medical officers and two wellness doctors.

“Looking at the market and the opportunities currently present, we expect normal return-on-investment (ROI) within three to four years,” Muhammad Badri said.

He added that the hospital has plans to expand its medical tourism customer segment.

“The Malaysia Healthcare Travel Council is very aggressive in making Malaysia the destination for healthcare. So, we are looking to grab this opportunity and increase the number of patients from that market to 15% within the next five years,” he said.

The medical tourism customer segment stands at 7% of its business, but has the potential to grow, according to a Performance Management and Delivery Unit report in 2013, which estimated this market segment can generate revenue of RM9.6 billion and RM4.3 billion in gross national income by 2020.

Muhammad Badri said KPJTSH targets RM220 million in revenue this year, following the RM200 million achieved last year. KPJTSH is owned by Pusat

Pakar Tawakkal Sdn Bhd, a sub-unit of Tawakkal Holdings Sdn Bhd, which is wholly owned by KPJ Healthcare Bhd.

KPJ Healthcare made RM3.31 billion in revenue and net profit of RM197.4 million or earnings per share of 4.17 sen a share for the financial year ended Dec 31, 2018.

KPJ Healthcare now operates 22 specialist hospitals and five centres that will be operating as specialist hospitals.