UOBKH Research trimmed its 2024-2026 earnings forecast for KPJ by 4% to account for more conservative medical tourism contributions.
PETALING JAYA: Private hospitals that are more economical in terms of pricing, such as KPJ Healthcare Bhd
, could be the hospitals of choice as treatment costs are partially borne by insured co-paying patients.
Insurance policies with co-payment features could result in 19%-67% lower premiums, according to Bank Negara.
UOB Kay Hian Research (UOBKH Research) said a 5% co-payment means that the patient has to pay RM2,500 out of pocket on a RM50,000 hospital treatment.
The rationale for co-payment is to rein in medical-cost inflation by controlling the over-consumption of health services, the research house said.
UOBKH Research trimmed its 2024-2026 earnings forecast for KPJ by 4% to account for more conservative medical tourism contributions.
It also maintained a “hold’’ call with a higher target price of RM1.90 a share from RM1.78 a share.
The key downside risks for the hospital operator include the tightening of regulatory policy, delay in hospital openings, and inability to pass on higher operating costs to patients.
UOBKH Research added that KPJ’s transformation plan is gaining traction, especially with the recent launch its new brand identity.
