SINGAPORE -- Raffles Medical Group's net profit rose 2.9% on the year in first quarter to 14.9 million Singapore dollars (US$11.2 million) as higher patient numbers lifted sales.
Singapore's largest health care provider logged revenue of S$95 million for the quarter, an 8.5% increase compared with the same period a year earlier. The expansion of the hospital operator's network and the hiring of more specialists contributed to the growth.
The rise in Raffles Medical's profit was much smaller than revenue growth, due to a 15.2% jump in staff costs. Recruitment costs to fill positions at a new medical center and expanded medical services were behind the increase, the company said.
The hospital operator will open a 1,580-sq.-meter medical center in June on Orchard Road, a popular shopping district. The facility will offer specialized medical care, including family medicine, health screenings and dental care.
Dr Loo Choon Yong, the company's executive chairman, said to meet growing demand from patients for traditional Chinese medicine, the group's Chinese medicine operation, Raffles Chinese Medicine, will set up its first branch outside the main hospital in the new medical center.
In early 2016, the group will also open a medical and retail complex in Holland Village, a residential district popular with expatriates. The complex will house a clinic, with the remaining space going to retail tenants and to financial services company DBS Group Holdings.