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Middle East Healthcare Co. (Saudi German Hospital) is forecast to report better financial results in 2020 compared to 2019, President Makarem Sobhi Batterjee told Argaam.
Batterjee attributed the company’s low profitability to the economic slowdown and lower receivables from the Ministry of Health, one of the company’s main clients.
He also indicated that the health services provider is trying to address the impact of the higher cost of salaries and depreciation expenses on the company’s profitability.
The Saudi German Hospitals cover around 80-90% of the Kingdom, including Jeddah, Riyadh, Al-Madina, Aseer and Hail.
“Operations were launched in Dammam hospital days ago,” Batterjee said, expecting Makkah hospital to launch operations within the next 12-18 months.
The Riyadh hospital expansion project is forecast to be finalized within a period of one and half years, he noted, adding that the company will increase the number of small medical centers around the Kingdom.
“The administrative monitoring business model in hospitals outside the Kingdom helps the company increase profitability without incurring additional expenses,” Batterjee mentioned, adding that it has partnerships with Bait Al Batterjee Medical Co. and other international entities.
The company is currently trying to attract the prominent investors, add new services and convert into specialty hospitals.
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