Healthway Medical reverses losses after revenue gets boost from Covid-19 support measures

SINGAPORE – Healthway Medical Corporation on Tuesday (Aug 10) reported an improved set of financial results for the first half of the year, boosted by revenues from its four vaccination centres, as well as Covid-19 polymerase chain reaction (PCR) and serology-testing projects across Singapore.

The healthcare provider’s stronger performance comes after Raffles Medical Group last month reported a doubling in earnings in the first half of the year compared with a year ago.

This was boosted by Raffles Medical’s support for Singapore’s Covid-19 initiatives and propelled executive chairman Loo Choon Yong onto the Bloomberg Billionaires Index.

He is now worth US$1.1 billion (S$1.49 billion), according to the index.

Healthway Medical reported profit after tax of $5.4 million for the first half, reversing a loss of $500,000 in the same period a year ago.

This came on the back of a 45.3 per cent increase in revenue to $66.4 million for the first six months of 2021, compared with the same period in 2020.

The company was commissioned by the Government to operate vaccination centres administering the Pfizer-BioNTech and Moderna Covid-19 vaccines at four sites: Canberra, Choa Chu Kang, Radin Mas and Yew Tee.

The centres are running on a one-year contract.

While revenues were supported by Covid-19 vaccinations and testing, demand for health screening and other healthcare services across Healthway Medical’s clinics and specialist centres in Singapore was also much higher this year compared with last year.

The higher number of patients came as a result of pent-up demand during the first half of 2020, when circuit breaker measures were imposed, Healthway Medical said in a statement.

For the rest of the year, Healthway Medical will support efforts to raise the country’s inoculation rates and intends to reach out to vulnerable segments of the community through its vaccination centres and mobile vaccination teams.

It is also in the process of bringing in the China-made Sinopharm Covid-19 vaccine under Singapore’s Special Access Route, a spokesman for the company said.

A total of 11 private healthcare providers in Singapore have been granted approval to bring in the Sinopharm vaccine by the Health Sciences Authority via the Special Access Route.

As more in Singapore are inoculated, Healthway Medical said it will continue to perform PCR, serology and antigen rapid testings to supplement revenue.

As Singapore prepares to open up its borders for business and leisure travel, the Ministry of Health has mandated all healthcare providers to issue digital pre-departure tests (PDT).

Healthway Medical currently offers PDTs at 33 of its general practitioner clinics.

It said it will also be pursuing further expansion of its network of clinics. Last month, it opened a new health screening centre and a dental clinic in the Orchard Road area.

Shares of Healthway Medical closed at 3.3 cents on Tuesday, unchanged during the day.