Non-Covid 19 Revenue BMHS Consistently Profitable
PT Bundamedik Tbk (BMHS) recorded an increase in non-covid-19 revenue. As the pandemic began to control, this increase in income has been consistent for the last three years.
The increase is reflected in revenue every quarter since the pandemic's start. Revenue for the second quarter of 2020 was IDR 197 billion, increasing to IDR 336 billion in the second quarter of 2021. Then it rose to IDR 356 billion in the second quarter of 2022.
In semesters I-2019 to I-2022, the company's revenue outside of Covid-19 was recorded to have increased by 39%. The total consolidated increase reached 55%. Thus, BMHS' non-covid-19 income in the first semester of 2022 is IDR 731 billion.
BMHS Managing Director Nurhadi Yudiyantho revealed that as the pandemic ends, the company is targeting revenue growth of 20-30% next year or 2023. The hope is that there will be no more cases of Covid-19 in Indonesia, considering the trend is decreasing.
Healthcare issuers' income, such as hospitals, has started to normal as the number of cases has decreased. BMHS offset the decline in Covid revenues with a higher contribution from its core business, namely the performance of each business unit's Centers of Excellence (COE).
This can be seen from the core or non-covid business growth, which rose 36% in 2Q2022 compared to 1Q2020—strengthened by the company's EBITDA Margin footprint of 23% in 1H2022 and consistent EBITDA growth of 1% annually.
Strategic Support in the Form of Business Expansion
BMHS has absorbed Capex of IDR 318 billion, most of which contributed to the purchase of 3 new hospitals, namely Citra Harapan Bekasi Hospital, Bandung Paramarta Hospital, and Pusura Tegalsari Hospital located in Surabaya.
Purchasing the hospital as an acquisition step was also carried out at RSIA Azzahra Palembang. The four new hospitals under BMHS managed to record a 54% growth in the number of beds, from 414 beds to 639.
BMHS oversees nine Bunda Group Hospitals, 10 Morula IVF clinics, 126 fertility clinics, 40 pathology laboratories, and diagnostic genomics. The company has over 150 primary care clinic networks (Smart Clinics), ER Medical Evacuation Teams, and IMTB medical tourism services.
The expansion of the Indonesian Fertility Clinic (KFI) with a collaborative model with ob-gyn clinics has also reached areas outside Jakarta with an asset-light CAPEX. The latest 1H2022 report shows a total of 126 KPIs, 23% located outside Java Island.
The increase in the number of hospitals goes hand in hand with the rise in non-Covid patients returning to the hospital for treatment, especially elective surgery. The number of inpatients and outpatients increased by 42% and 12% year on year (YoY), respectively.
In elective surgery cases, the growth is up to 41% YoY. These elective surgery patients automatically use the facilities provided by the hospital, which is also part of the calculation of the increase in BMHS revenue.
Non-Covid Income Increase Optimism
By implementing an aggressive strategy and ecosystem development, BMHS is optimistic that it can realize its 2022 business targets. As the pandemic ends, people's economic conditions are starting to recover, so there are no more restrictions on using public health facilities.
The company focuses on three priority strategic pillars to drive sustainable business growth during 2022. These pillars consist of expanding the ecosystem, strengthening the company's core business, and deepening strategic partnerships.
After the hospital expansion target is met in the first half of 2022, BMHS plans to expand the Morula and diagnostics business units by the end of this year. Hopefully, this strategy will support an increasingly consistent increase in non-covid income.
dr. Harmeni Wijaya, M.D
PT Bundamedik Tbk