Nawaloka Hospitals goes from loss to profit
Nawaloka Hospitals PLC posted a profit after tax (PAT) for the fiscal year 2019/20 of Rs. 15.9 million, a noteworthy increase in comparison to a net loss of Rs. 587.1 million the previous year.
The hospital revenue was Rs. 8.5 billion for the fiscal year 2019/20. While performance in the first quarter of the year was severely hindered due the devastating Easter attacks, progress during the final quarter was impacted by the developing global health crisis.
PAT for the year in review was at a commendable performance amidst turbulent times. While assets grew 9% to Rs. 17,704 million, the group recorded a substantial improvement in gross profit margin to 56% from 51% in 2018/19.
Nawaloka Hospitals said its improvement in performance is largely credited to the cost-saving measures that were aggressively driven across the organisation, expansion of the laboratory network under the strong Nawaloka brand, and growth from regional hospitals located in Negombo and Gampaha.
“As we continue to rebound from the adverse impacts brought about by two black swan incidents, the Easter attacks and the developing global health crisis, we are proud that the group has remained resilient and recorded a commendable growth during an extremely challenging year. Our robust cost management initiatives and process re-engineering efforts backed by digital technologies have helped Nawaloka Hospitals outdo last year’s results and drive strong performance in 2020 while strengthening our position as a premier healthcare specialist in the country,” Nawaloka Hospitals Deputy Chairman Harshith Dharmadasa stated.
The state-of-the-art Nawaloka Specialty Centre, which absorbed a massive capital expenditure of Rs. 6.8 billion during the past two years, has proven to be an opportune investment during this period of contagion, Nawaloka said. The massive 400,000 sq ft centre with a mega multi-storey car park boasts a strategic combination of advanced medical technology and expert medical care.
Each medical specialty is allocated a designated channel module within the centre, offering patients privacy, adequate space to practice social distancing, and screening from infection by interacting with patients from other specialties. Pharmacy and laboratory facilities located on each floor restrict mobility within the hospital, further limiting the possibility of cross infection.
“Covid-19 is reshaping industries including healthcare in ways that are likely to be permanent. Therefore, we will continue to adapt to create shared value for our entire spectrum of stakeholders by continuing to focus on our primary purpose of delivering advanced and sustainable patient-centric healthcare, responsibly in a secure environment. I believe the coming year will lay bare the significant potential in our investments in infrastructure, human resources, and processes. Our commitment towards better healthcare in the country continues to grow from strength to strength, enriching the lives of our people as we explore ways to improve our product offering and streamline our services to cater to the evolving needs of our patients,” Dharmadasa continued.
During this period, Nawaloka Hospitals opened the country’s first private sector Chest and Sleep Centre and upgraded the Nawaloka Elders’ Holistic Healthcare Centre to provide comprehensive and specialised geriatric care. The group also inaugurated a Centre of Excellence for Menopause and upgraded its Fertility Centre to better meet rapidly evolving patient requirements. A drive-thru laboratory service was launched for the first time in the country, along with a 24×7 call centre to facilitate the booking of channelling appointments and other services offered by the hospital. Two new state-of-the-art mini laboratories in the commercial cities of Galle and Ragama were also established to fortify the group’s exceptional diagnostic capabilities.
Nawaloka also offers a 24-hour OPD centre, a state-of-the-art ETU facility, air and land medical evacuation services which include mobile ICUs, as well as a home nursing unit offering professional in-home care services.
Nawaloka Hospitals was recently awarded the Joint Commission International’s (JCI) gold seal of approval for its continued compliance to internationally recognised healthcare standards. The Nawaloka chain of healthcare facilities continues to adhere to the stringent health guidelines imposed by the Ministry of Health, Epidemiology Unit, and the World Health Organisation (WHO), Nawaloka said.
Image 2: Nawaloka Hospitals Deputy Chairman Harshith Dharmadasa