Saudi German Hospital sees rise in operations across chain in Q3 2020: official

Middle East Healthcare Co. (MEAHCO), which owns and operates Saudi German Hospital, witnessed an increase by 45%, or 6,758, in in-patient numbers in the third quarter of 2020, Chief Financial Officer Madani Hozaien told Argaam.

Out-patient numbers also rose by 15%, or 44,600, he added, while commenting the third quarter results.

He further added that Q3 saw a remarkable rise in operations across all of the group's hospitals, leading to an increase in revenues by 27.25% year-on-year (YoY).

However, the rise in costs related to fighting COVID-19, coupled with losses incurred from launching the operation of the group's new hospital in Dammam, offset such gains to bring net profit lower to 5%, he said.

MEAHCO has implemented a central strategy for procurement across all affiliated hospitals, and launched a major tender for all types of pharmaceuticals and medical supplies, which will lead to a saving of more than SAR 20 million during the first two years.

The company's credit facilities and loans currently stand at SAR 1.341 billion, with short-, medium-, and long-term maturities, Hozaien said, adding that they increased due to delay in the collection of the company's entitlements from the Ministry of Health.

"Those debts will shrink with the ministry's repayment of our due amounts," he noted.

Regarding the dividend distribution policy, Hozaien indicated that the board of directors is still studying expansion projects in Jeddah and Riyadh, in light of which it will take a decision during its upcoming meeting.

According to data compiled by Argaam, the company reported a net profit after Zakat and tax of SAR 72.5 million in the first nine months of 2020, a 21% increase, compared to SAR 60.1 million in the year-earlier period.

Q3 2020 net profit rose 5% YoY to SAR 34.9 million.