KPJ Healthcare’s Third Quarter Revenue Hits Milestone By Surpassing RM1 Billion, Reactions Unkind

KPJ reported that revenue climbed to RM1.03 billion in Q3 2024 due to higher patient loads and more beds available throughout its network.

Local private healthcare provider KPJ Healthcare Berhad recorded its highest revenue in the third quarter ending 30 September, surpassing the RM1 billion mark for the first time.

The JCorp company said this was driven by a 6% increase in inpatient admissions.

The historic milestone saw KPJ’s revenue go up by 14% to RM1.03 billion in the third quarter of this year compared to RM906.89 million in the same period last year.

Revenue for the whole of this year until 30 September also went up to RM2.87 billion, a 15% increase from RM2.5 billion in the corresponding period last year.

But what about their net profit?

According to The Edge, the group’s net profit for the third quarter of this year ending 30 September fell to RM86.03 million from RM91.75 million in the third quarter of 2023.

Their profit before tax (PBT) for this period however increased by 2%.

In a statement, KPJ said they sustained a strong operational momentum in the third quarter of this year, achieving a bed occupancy rate of 72%.

Inpatient admissions rose to 103,228, while outpatient visits increased to 784,437.

For the current fiscal year, KPJ has announced a fourth interim dividend of RM50.2 million, or 1.15 sen per share. On 27 December, 2024, shareholders will receive their dividend.

“Achieving RM1 billion in quarterly revenue for the first time is a testament to our ability to deliver high-quality, patient-centred healthcare while continually improving our operational performance. This milestone reflects the trust placed in us by our patients and stakeholders. With enhanced service offerings and increased bed capacity, we are driving patient satisfaction and achieving stronger results. We remain focused on delivering even greater value as we expand our services to meet the nation’s growing healthcare needs.Chin Keat Chyuan, President and Managing Director of KPJ Healthcare

Mixed feelings among netizens concerning rising medical fees and insurance premiums

The news of KPJ’s record breaking revenue did not sit well with members of the public, as it also reflects the increase in medical costs.

However, many have also pointed out that it’s normal for private hospitals to earn such a large revenue after factoring in operational costs, medical equipment, building maintenance, and consumables, which are mostly sourced from overseas.

Others have highlighted the price increase on medical insurance premiums, which is expected to rise by 40 to 70 percent in 2025.

Netizens speculate that the insurance hike is likely caused by increasing medical costs, raising concerns over affordability of healthcare.

Subang and Shah Alam Consumers Association president Jacob George called for a limit to increases in medical insurance premiums and demanded that medical insurance companies disclose their annual losses if they plan to increase premiums.

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