Fakeeh Care topline rises on higher patient volume, O&M contracts

Dr. Soliman Abdel Kader Fakeeh Hospital Co.’s (Fakeeh Care) performance reflects revenue growth of 21.1% year-on-year (YoY), driven by the continued increase in the number of cases served, improved business mix with higher implied average revenue per patient, and the growing contribution from the group’s operation and management (O&M) contracts, President Mazen Fakeeh told Argaam.

 

This came in addition to robust operating profit and lower interest expenses following the recent debt repayments.

 

Total billable patients served, including both inpatient admissions and outpatient visits reached nearly 439,000 in Q3 2024, an increase of 14.3% YoY.

 

“Our continued focus on quality care and complex surgeries as well as medical procedures is enhancing profitability across the group,” Fakeeh said.

 

Additionally, the continued ramp-up at Riyadh Hospital as well as the growing contribution from the O&M contracts at NEOM Hospital helped drive the group’s results.

 

Fakeeh indicated that the group continues with its expansion strategy, having recently announced the allocation of SAR 218 million for construction contracts related to upcoming projects of Advanced Horizons Contracting Co. (AHC), a 100% subsidiary of Fakeeh Care.

 

“We are optimistic about the future and outlook of the healthcare market in Saudi Arabia, driven by the overall favorable macro environment, including rapid population growth, positive demographics, and increasing demand for added healthcare capacity,” he noted.

 

Additionally, the regulatory focus on increasing health insurance coverage, government privatization efforts, and improved demand for premium services – all of which is happening with the backdrop of Vision 2030’s Health Sector Transformation Program –underpin Fakeeh Care’s bullish position in the market.

 

The company’s outlook for Q4 2024 and full-year performance remains strong, with the management being optimistic about the group’s growth prospects on account of maintained market leadership in Jeddah with growing utilization across the group’s medical centers.

 

Further, the group focused on the continued ramp up of Riyadh Hospital with improvement of operational efficiency; growing contribution of the NEOM O&M contracts; increased focus on complex care and surgeries. It also adopts a positive macro-outlook in the Kingdom, including rapid population growth and increasing demand for added healthcare capacity.

 

Fakeeh Care’s net profit rose to SAR 213.8 million in 9M 2024, compared to SAR 205.6 million in the same period of 2023. The third-quarter profit amounted to SAR 93.6 million, Argaam earlier reported.