Siloam Sees Strength in Operational Growth
Jakarta. Siloam International Hospitals, one of the largest hospital operators in Indonesia, saw a silver lining in its 2018 performance on the back of strong operational growth.
The company said in a statement on Thursday that its gross operating revenue rose to Rp 5.9 trillion ($418 million) last year. Siloam's net operating revenue increased 13 percent to Rp 4.5 trillion, thanks to its mature hospitals in eastern and western Indonesia.
But overall, Siloam, which is part of diversified Indonesian conglomerate the Lippo Group, recorded a 13 percent year-on-year decline in operating profit, at Rp 192 billion, last year.
"Our company is still in an expansionary phase and has continued to open new hospitals," Siloam president director Ketut Budi Wijaya said in the statement, explaining the lower profit.
"New hospitals require a certain gestation period to achieve earnings growth, so as our new hospitals begin maturing, I expect them to drive robust earnings growth in the near future," he added.
The company saw an 11 percent year-on-year increase in inpatient admissions to 206,000 in 2018, while average revenue per inpatient grew 2 percent to Rp 4.93 million. This translated into an 11 percent increase in inpatient revenue at Rp 3.5 trillion, Siloam said.
Emergency department visits rose to 294,000, or 12 percent higher than the previous year. The conversion rate from evaluation and treatment clinic to inpatient remained stable at 40 percent in 2018.
Siloam treated 2.39 million outpatients in 2018 – 8 percent more than in 2017. Average blended outpatient revenue per visit increased 4 percent to Rp 846,000. This resulted in blended outpatient revenue of Rp 2.4 trillion last year, which is 14 percent higher than in 2017.
The Jakarta Globe is affiliated with the Lippo Group.
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