The Jakarta Post
Hospital operator PT Siloam International Hospitals recorded a net loss of Rp 338.77 billion (US$23.43 million) throughout 2019.
The net loss it booked in 2019 stands in contrast to the Rp 16.18 billion in profit it gained last year, resulting from the company's decision to take a more conservative approach to valuing its assets as it shifted its business strategy.
Through the assets review, it made a one-off non-cash adjustment totaling Rp 426 billion that eroded its profit. The reviews resulted in an adjustment in the firm’s accounts receivable balance, cancellation of projects and improved policies for the firm's registration of fixed assets.
Despite this, the company saw a 17.7 percent increase in revenue to Rp 7.02 billion in 2019.
“Management has successfully grown revenue across all our units. The board’s strategy of focusing on monetizing existing assets and selective expansion is starting to bear fruit,” Siloam Hospitals president director Ketut Budi Wijaya said in a written statement published on May 29.
The hospital’s out-of-pocket revenue, which came from patients’ medical expenses that are not covered by insurance, rose 13.6 percent year-on-year (yoy) to Rp 2.65 billion in 2019.
Meanwhile, the revenue it received from the corporate and insurance segment increased 19.4 percent to Rp 2.83 billion.
In a written statement published on May 29, the company explained that it “shifted its strategy to consolidation and improved asset monetization”, from a prior strategy of expanding its reach and scale “by building Indonesia’s largest private hospital network”.
Siloam Hospital currently operates more than 40 hospitals across Indonesia.
Operationally, the company also saw an increase in the number of in-patients, patients who stay in hospital while under treatment, by 21.7 percent yoy to over 250,000 patients.
Meanwhile, the number of out-patients, those who receive medical treatment without being admitted to hospital, increased 15.5 percent to more than 2,750,000 patients.
The company has also stated it had been impacted by COVID-19 this year, while not providing any specific details.
“Management will continue to implement actions to address the challenges presented by COVID- 19,” Ketut said.
Siloam Hospital’s shares, traded on the Indonesia Stock Exchange (IDX) under the code SILO, have fallen 20.65 percent year-to-date to Rp 5,475 apiece, as of Friday.
During afternoon trading on Tuesday, Siloam's stocks fell into the red territory, declining 3.2 percent against the previous trading day as of 2:25 p.m.