SGX-listed private healthcare provider Health Management International has announced S$11 million (US$8.1 million) investment from Temasek subsidiary Heliconia Capital Management.

HMI will issue 16.9 million new ordinary shares at S$0.65 per share to Orchid 2 Investments which is managed and controlled by Heliconia. This investment means that Heliconia will hold a 2% stake in the enlarged share capital of the group.

“Heliconia has strong interest in the healthcare sector as it ties in well with regional trends of growing middle class and ageing population. We hope to work closely with HMI to explore more opportunities where we can collaborate,” said Heliconia CEO Derek Lau.

At the same time as the investment HMI announced stellar results for the first quarter of the year. Profits more than doubled to S$13.8 million on revenues that rose 6.9% to S$117.1 million.  

Profits jumped this quarter in the wake of the wake of the consolidation exercise completed at the end of March. As well as strong operational performance, 100% of net income is now attributable to HMI shareholders.

The group registered growth from both foreign and local patients as total patient load increased 5.4%. In addition, average outpatient bill sizes increased 12.2%, while average inpatient bill sizes increased 3.6%. This was mainly attributed to higher revenue intensity and increasingly complex surgeries. During the quarter, the group’s operational bed occupancy remained stable at 61.3%.

In light of the rising demand for healthcare across the region, the group has embarked on expansion initiatives to capture growth opportunities. HMI’s Mahkota hospital plans to increase operational bed capacity from 266 beds to 300 beds during the financial year, while at Regency construction on a new hospital extension block will begin this year.

The new block will more than double existing capacity with additional inpatient beds, clinical services, operating theatres and clinical suites for sale or rental to doctors. The US38 million expected construction cost will be funded by debt and internal cash resources.

When it completes in 2021, Regency will become a 380-bed tertiary hospital, with potential to expand capacity to 500 beds. In the near term, Regency is increasing its operational bed capacity from 166 beds to 200 beds.

“To capture opportunities within medical tourism, we continue to leverage on our 16 patient referral offices across Indonesia, Malaysia and Singapore. We have also taken the initiative to broaden patient referrals to Regency and Mahkota through joint overseas marketing initiatives. Looking ahead, we remain well poised to grow our market share and attract more foreign patients to our hospitals,” said CEO Chin Wei Jia.