Jakarta. Siloam Hospital International, one of Indonesia's largest hospital operators, has turned a profit last year, thanks to swift response in implementing a strategy during the outset of the Covid-19 pandemic to overcome steep declines in inpatient outpatient volumes.
The company's net income rose to Rp 125 billion ($8.6 million) last year, recovering from Rp 333 billion loss in 2019. The net income should have been Rp 22.8 billion higher if not for changes in how certain financial leases are recorded to comply with a new accounting statement standard (PSAK), Siloam said in a statement on Friday.
"I’m extremely proud of the management team who were able to rapidly respond to the pandemic to ensure that we could play a vital role in assisting the country through this period," Ketut Budi Wijaya, Siloam’s president director, said in the statement.
Due to the pandemic, Siloam saw inpatient admittances down 28 percent last year to 179,000 from 250,000 a year earlier. Outpatient visits decreased by 24 percent to 2.10 million compared with 2.75 million, the company said.
Siloam overcame steep declines in the volumes by increasing existing services' margin and creating new services. As a result, Siloam's earnings before interests, taxes, depreciation, and amortization (Ebitda) rose to Rp 1.2 trillion, up 37 percent from Rp 871 billion last year.
Moreover, Siloam and its parent company Lippo Karawaci have successfully agreed on new rental rates for 11 hospitals. The restructuring was effective from 1 January 2021, over the 15 years leases period.
The company said that the new rental rates were "economically beneficial to Siloam compared to allowing these leases to expire naturally then re-based to the prevailing market rate of the time."
Siloam also said it saw a consistent upward trend in patient volumes, although not back to pre-Covid-19 level.
"We have started 2021 on a strong footing, and we’re optimistic about the future of healthcare in Indonesia and, most importantly, of Siloam," Ketut said.
The hospital operator sought to pay an ordinary dividend of Rp 56 billion or 45 percent of net earnings last year. The company would also pay an additional one-off dividend of Rp 170 billion, highlighting its success in transforming its business in recent years.
In total, shareholders would receive Rp 226 billion in 2020 dividend, subject to general shareholders' approval, the company said.
Fighting the Pandemic
Today, Siloam has polymerase chain reaction (PCR) testing laboratories in 15 hospitals across Indonesia.
The laboratories carried out than 1.5 million antibodies, serology, antigen tests, and around 212,000 PCR and isothermal tests, providing invaluable support to Indonesia's effort to test and trace the Covid-19 suspects.
Nationally, Indonesia's conducted more than 7.35 million PCR tests on samples from more than 4.9 million suspects last year, Health Ministry data showed.
Siloam also dedicated four hospitals and 1,035 bends across its hospital network for Covid-19 patients treatment.
The hospital had taken care of more than 11,000 Covid-19 patients last year. There were more than 743,000 Covid-19 patients in Indonesia last year, the ministry data showed. Ketut said Siloam invested heavily in protective equipment and surveillance last year throughout its hospital network to ensure medical workers' and patient's safety.
"The most important mission for Siloam is to ensure that our staff and patients are safe," Ketut said.