Saudi German Hospital CFO says health ministry owes 55% of SAR 1.6 bln receivables in 2020

Madani Hozaien, CFO of Middle East Healthcare Co. (Saudi German Hospital)

Middle East Healthcare Co. (Saudi German Hospital) had accounts receivable of SAR 1.6 billion by the end of 2020, of which 55% are owed by the Ministry of Health, chief financial officer (CFO), Madani Hozaien, told Argaam in a telephone interview.

“We hope the Ministry of Health will speed up the payment of our receivables, in light of its provisions under the current budget,” Hozaien said.

The company’s results for the fourth quarter of 2020 did not include any COVID-19 revenues, which widened losses from Dammam Hospital, that started operations amid the pandemic outbreak. The hospital was fully allocated for the health ministry’s infected employees. Accordingly, the hospital started to increase its reliance on insurance firms, to boost its revenues and profitability going forward, he added.

The number of inpatients increased to over 70,400 in 2020, from 57,000 a year earlier. Meanwhile, the number of outpatients decreased from 1.25 million in 2019 to 1.17 million in 2020.

Elsewhere, Hozaien added that Makkah Hospital and Riyadh Hospital extension project are expected to be finalized in the fourth quarter of 2021.

Saudi German Hospital reported a net profit after Zakat and tax of SAR 101 million for 2020, an increase of 4%, from SAR 97.6 million in 2019.