Some 70 % of Sri Lanka’s population used private hospitals for outpatients needs while 30 % of the population used it for in-patient facilities, according to the country’s premier private hospital, Nawaloka Hospitals, quoting unnamed statistics.
Chairman and CEO Jayantha Dharmadasa, in the company’s 2011-12 annual report said, ‘the increased patient intake at Nawaloka Hospitals is emblematic of the significant inroads private sector health care is making in the country.’
He said the statistics also suggest that patients see ‘clear advantages of private sector health care such as advanced technology, quick response to patient needs and access to leading consultants as compared to state-run hospitals’
The report noted that the economic revival in the country is boosting disposable incomes and this is reflected in greater usage of private medical facilities, adding; “this is a welcome trend and we expect it to gain further momentum”.
The 26-year-old company said it has begun a 1.5-billlion-rupee mega car park construction project on the land adjoining the Slave Island-based hospital. The 12-storey car park will accommodate 600 cars at any given time, addressing the urgent need for vehicles parking for thousands of visitors who visit the hospital daily. Mr Dharmadasa, eldest son of the founder H.K. Dharmadasa and often seen at around 8 am dressed in a white shirt and trousers in the lobby checking out front office operations before moving to his office, said the group’s revenue increased by 15% to Rs. 3.7 billion with a net profit of Rs. 271 million. The group’s gross profit increased to Rs. 1.9 million which shows an increment of 19% on a year on year basis.
The company invested Rs. 416 million in the past year to upgrade medical equipment.
The Nawaloka chairman also highlighted an important issue in the context of Sri Lanka’s population which is ageing. “The citizens of the country need urgent access to comprehensive medical insurance schemes, which are currently accessible only to a limited percentage of the population. It is imperative to note that the private sector health care will never be able to fulfill its growth potential in the absence of viable medical insurance schemes,” he added.
Nawaloka is also targeting medical tourism and is in the midst of acquiring independent global accreditation for the hospital which would take the local hospital group into the globally accredited top hospitals in the world.
Mr Dharmadasa also spoke of the scarcity of trained professional medical staff and noted that this remains a challenge not only for the company but for the industry as a whole. “There is an urgent need for deploying increased number of trained medical staff and this requires a concerted effort by concerned authorities,” he added.
The latter part of the 2011-12 year was rattled by rising interest rates and currency fluctuations which had an adverse impact on the company’s bottom line. “In the foreseeable future, the prevailing currency rate fluctuation will impact on the cost of healthcare, as most of drugs and medical equipment is imported, thereby, compelling us to pass the burden on to our consumers in the future. However, thus far, we have absorbed the price increases while focusing on cost management, resisting the easy way out of passing the additional cost on to our customers,” he said.
The company is also identifying potential areas in the suburban and rural regions of the island to set up a chain of regional hospitals, to increase it from a current 15 branches and 280 collection centres countrywide in the Nawaloka chain of labs. “By reaching out to rural areas, more patients will be able to access our health care services,” Mr Dharmadasa said. |
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