Care CEO expects to complete Riyadh hospital renovation by 2022-end

Abdulaziz Alobaid, CEO of National Medical Care Co.

National Medical Care Co. (Care) started the renovation of the Riyadh Care Hospital (RCH) in Q1 2021 and is being carried out in phases to minimize disruption to patients and hospital operations, chief executive officer (CEO) Abdulaziz Alobaid told Argaam in a telephone interview.

“We expect the entire project to complete by the end of next year,” Alobaid said.

The company signed a contract worth SAR 32.4 million with Tabrak Najd Contracting Co.to develop RCH by the end of the first quarter of 2021.

Commenting on the first-quarter financial results, Alobaid added that Care’s net revenue grew by 10% over the first quarter of last year, driven by increased volumes.

“We witnessed growth in major customer segments, i.e., the Ministry of Health, the General Organization for Social Insurance (GOSI), insurance and cash patients. Our gross profit margin also improved, due to higher-margin customer mix, increased inpatient and surgical revenue and lower direct cost,” Alobaid elaborated.

Meanwhile, the selling and marketing expenses increased in Q1 2021, compared to the first quarter of 2020. During the previous year, several settlements were signed with insurance companies for older balances, resulting in the reversal of previously booked bad debt provisions.

On the expansion of Care National Hospital, the company is currently awaiting the approval of the municipality. Once received, it will proceed with the Ministry of Health approval.

Talks are also ongoing with GOSI for the contract renewal, the CEO said, noting that Care continues to follow up with the health ministry for older receivables through continuous engagement.

On the company’s strategy for the next five years, Alobaid said: “We are always revising and building our strategy for the next five years by baselining our current performance against our peers, performing a KSA healthcare landscape assessment and exploring the opportunity space in light of market dynamics and organizational capabilities.”

Care’s net profit grew by 7.7% to SAR 35.7 million in Q1 2021, from SAR 33.2 million a year earlier, Argaam reported.