Build |Innovate |Transform
Annual Report 2022
Content
Group Overview
About this Report | 01 |
Navigating this Report | 02 |
Investment Case | 03 |
Story of 'Care. For Good.' | 04 |
Case Studies: | |
Build | 06 |
Innovate | 08 |
Transform | 10 |
IHH at a Glance | 12 |
Financial Highlights | 14 |
Operational Highlights | 16 |
IHH 10th Anniversary Special Feature | 18 |
Corporate Milestones 2022 | 20 |
Awards and Accreditations | 22 |
Strategic Report
Chairman's Statement | 26 |
Market Outlook | 30 |
Business Model | 34 |
Business Strategy | 36 |
Stakeholder Engagement | 38 |
Our Material Matters | 42 |
Risk Management | 45 |
page
73
Governance Section
Sustainability
Opening Statement on Sustainability | 64 |
Sustainability Approach | 65 |
Sustainability Highlights | 67 |
Sustainability Commitments | 68 |
Sustainability Snapshots | 69 |
Sustainability Governance Structure | 71 |
Governance
Board of Directors | 74 |
Group Management | 80 |
Corporate Governance Overview | 86 |
Financial Statements
Directors' Report | 126 |
Statement by Directors | 132 |
Statutory Declaration | 133 |
Independent Auditors' Report | 134 |
Statements of Financial Position | 139 |
Statements of Profit or Loss | 141 |
and Other Comprehensive Income | |
Statements of Changes in Equity | 142 |
Statements of Cash Flows | 148 |
Notes to the Financial Statements | 150 |
Additional Corporate
Information
Analysis of Shareholdings | 267 |
List of Top 30 Largest Shareholders | 269 |
List of Top 10 Properties | 271 |
Notice of Thirteenth Annual | 273 |
General Meeting |
Form of Proxy
About This Report
The Company's Annual Report 2022 has been prepared in accordance with the International Framework set by the Value Reporting Foundation and with reference to the Global Reporting Initiative (GRI), including the Sector Specific Sustainability Topics for Healthcare Providers and Services and Healthcare Technology - to enhance reporting connectivity while providing stakeholders with a more holistic view of how the Company creates and sustains value.Our reporting processes also comply with the provisions of the Malaysian Code on Corporate Governance, the Main Market Listing Requirements (MMLR) and the Sustainability Reporting Guide (2nd edition) of Bursa Malaysia Securities Berhad,
the Companies Act 2016, the Malaysian Financial Reporting Standards (MFRS) and International Financial Reporting Standards (IFRS). Besides financial reporting, our Report also includes non-financial performance, opportunities, risks and outcomes attributable to, or associated with, all our stakeholders that significantly influence IHH's ability to create value.
Build |Innovate |Transform
At IHH, we power sustainable growth through foresight and dynamism while staying anchored
to our commitment to 'Care. For Good.' With unwavering trust placed in us by all stakeholders, we continually challenge the status quo of the healthcare
model to do better by patients. This is how we bring to life our purpose of 'Touching Lives. Transforming Care.'
Principal Risks | 46 |
Performance Review
Management Discussion and Analysis | 49 |
Operations Review by Group Chief | 51 |
Operating Officer | |
Malaysia | 54 |
Singapore | 55 |
Türkiye and Europe | 56 |
India | 57 |
Greater China | 58 |
IMU Health | 59 |
Parkway Life REIT | 59 |
Financial Review by Group Chief | 60 |
Financial Officer |
page
26
Statement | |
Nomination and Remuneration | 103 |
Committee Report | |
Audit Committee Report | 108 |
Risk Management Committee Report | 111 |
Statement on Risk Management and | 113 |
Internal Control | |
Investor Relations Report | 119 |
Other Information
Additional Compliance Information | 122 |
Directors' Responsibility Statement | 124 |
page
139
Financial Statements
A shared aspiration, these three words sum up what IHH Healthcare stands for:
- Our vision to be the world's most trusted healthcare services network;
- Our purpose to touch lives and transform care;
- Our commitment to provide greater good to our patients, our people, the public and our planet.
Care - As a world-leading integrated healthcare provider, we aim to make healthcare not just about health, but care, with a pulse of empathy.
For Good - Because we believe in building a better world, not just for us but for generations to come.
Our Purpose
Touching Lives.
Transforming Care.
Our Vision
To be the world's most trusted healthcare services network
Our Mission
To take exemplary care of our patients, anchored around our people who strive to continuously raise the bar in clinical, operational and service excellence
Our Values
- atients First
We put patients' needs first
- ntegrity
We do the right thing
- mpathy
We listen with our hearts
- eamwork
We are better together
- xcellence
We champion continuous improvement and innovation
Chairman's Statement | 1 |
IHH Healthcare Berhad Annual Report 2022 |
Navigating This Report
Navigation Icons
Refer to this guide while traversing the report.
Investment Case
IHH Healthcare consistently performs in the top echelons of the healthcare industry. Our leading edge lies in these key competitive advantages.
Principal Risk
Geopolitical | Pandemic | Climate |
Change | ||
Cybersecurity | Foreign Exchange | |
and Data Privacy | ||
Build, Innovate and Transform
Build Innovate Transform
Trust, Synergy, Growth and Sustainability
Trust | Synergy |
Growth | Sustainability |
Stakeholder Engagement
Senior | Doctors, Nurses |
Management | and Employees |
AcademiaStudents
AccreditationRegulators
Bodies
Intermediaries | Suppliers and |
Service Providers | |
Investors and | Patients |
Shareholders | |
Local | |
Communities |
8 Trusted Brands
Our leading brands are award-winning household names in their respective home markets. Our brands including Acibadem, Mount Elizabeth, Prince Court, Gleneagles, Fortis, Pantai, Parkway and IMU* are widely recognised and celebrated. For instance, Acibadem Healthcare Group in Türkiye has won the title of Healthcare Services Export Champion (awarded by the Services Exporters' Association) for six consecutive years. We also took home five accolades in the Institutional Investor's 2022 All-Asia (excluding Japan) Executive rankings, placing third overall for our sector.
Our international network of 83 hospitals in 10 countries allows us to raise the bar of excellence and make healthcare more convenient, efficient and affordable. We have many opportunities to share best practices between countries and streamline operating models to bring better outcomes more efficiently. Certain synergies reaped include the creation of a centralised IT
Global Scale and Influence
Our Reporting Suite
IHH Annual Report for the financial year ended 31 December 2022 is supplemented by our standalone Sustainability Report 2022. Our reporting suite can be accessed online.
Reporting Suite | Annual Report 2022 | Sustainability Report 2022 | ||
Disclosure | • | Chairman's Statement | • | Global Reporting Initiative (GRI) |
• | Management Discussion and Analysis | • | Sustainable Development Goals | |
• | Operations Review by Group Chief Operating Officer | Disclosure (SDGD) | ||
• | Financial Review by Group Chief Financial Officer | |||
• | Corporate Governance Overview Statement | |||
• | Audit Committee Report | |||
• | Statement on Risk Management and | |||
Internal Control | ||||
• | Director's Report | |||
• | Independent Auditor's Report | |||
• | Financial Statements | |||
Reporting | • | Main Market Listing Requirements of | • | Main Market Listing Requirements |
Frameworks | Bursa Malaysia Securities Berhad (MMLR) | of Bursa Malaysia Securities | ||
• | Value Reporting Foundation's Framework | Berhad (MMLR) | ||
• | Malaysian Code on Corporate Governance 2021 | • | SGX Listing Rule 711 (A) and (B) | |
• | Companies Act 2016 (CA 2016) | • | Global Reporting Index | |
• | Malaysian Financial Reporting Standards (MFRS) | Standards 2021 | ||
• | International Financial Reporting Standards (IFRS) |
Please scan the QR code to refer to our Sustainability Report.
Deep Operating
Capabilities
Commitment to
Sustainability
shared service centre for our global network, and establishing global procurement capabilities to optimise processes.
IHH's network of hospitals have seen firm rebound in inpatient admissions with strength and finesse. Our operational excellence is affirmed with accolades such as the Global Health Asia-Pacific Awards 2022 won by our hospitals in Malaysia and Singapore.
IHH takes the lead on innovation. We are always on the lookout to form strategic partnerships and drive investments to stay ahead of the curve in the fast-changing industry. IHH is one of the first healthcare groups in the world to use Artificial Intelligence (AI) to estimate hospital bills and make telemedicine accessible to the public during the pandemic.
Our steadfastness in sustainable growth is a top-down commitment and core value within the Group. 'Care. For Good.' is much more than a corporate strategy; it represents our commitment to make a positive impact at every touchpoint with our patients, our people, the public and our planet.
At the Forefront
of Change
* Completed divestment of IMU on 31 March 2023
2 | IHH Healthcare Berhad Annual Report 2022 | 3 |
Care - As a world-leading integrated healthcare provider, we aim to make healthcare not just about health, but care, with a pulse of empathy.
For Good - Because we believe in building a better world, not just for us but for generations to come.
Care for Our Patients
New lease of Life
Our team at Fortis Escorts Hospital Okhla gave a 74-year-old patient suffering from congenital heart anomaly a new lease of life.
Led by Dr Atul Mathur, Executive Director, Interventional Cardiology & Chief of Cath Lab, our team of doctors successfully performed a transcatheter aortic valve replacement (TAVR) for the patient. The surgery was an extremely challenging one as the elderly patient was suffering from various ailments including dextrocardia, where his heart is located on the right side of the chest. We're glad to have the patient discharged from the hospital in a stable condition just a day shy of his birthday.
Care for Our People
Best Employer Brand Award
Our people are the heartbeat of our operations. Clinching Asia's Best Employer Brand Awards 2022 is a testament to our hard work and dedication to cultivate and foster an amazing work culture.
We will continue our efforts to be a trusted employer of choice. We believe that caring for our people's wellness will keep them motivated, happy
and healthy as they engage in work they enjoy.
Care for the Public
Fighting a Silent Pandemic
Antimicrobial resistance (AMR) is the third leading cause of death, trailing just behind heart attack and stroke. As a healthcare leader, IHH is leading the charge to combat this silent pandemic through outreach and education programmes to inform the public of this threat.
All IHH hospitals will implement AMR interventions in line with the Centers for Disease Control and Prevention (CDC), World Health Organization (WHO) and national guidelines by 2025.
Care for Our Planet
Malaysia First Green Hospital
Pantai Hospital Laguna Merbok is the first hospital in Malaysia to incorporate green technology and design in its construction and operations, while focusing on providing patient comfort.
The hospital boasts many sustainability features that reduce carbon emissions. They include a 40kW Solar Photovoltaic (PV) system on the rooftop, water recycling system for hemodialysis, central garden courtyard and charging stations for electric and hybrid vehicles.
4 | IHH Healthcare Berhad Annual Report 2022 | 5 |
Build a Stronger Core
We have engineered growth through organic and inorganic means in the past year - and in the process, brought value not just to key stakeholders but the communities in which we operate.
Boosting Capacities and Reallocating Capital
The first and most intuitive avenue for growth is via organic expansion to meet increasing demand for private healthcare services.
IHH successfully opened two hospitals; a 200-bedmulti-speciality hospital by Fortis Healthcare in India and a 300-bed capacity Acibadem Ataşehir Hospital in Türkiye.
We also ramped up capacity and broadened capabilities within our network. For instance, Mount Elizabeth in Singapore launched its Neurological Rehabilitation centre (NRC) to provide patients a full spectrum of neurological and neurosurgical services.
Concurrently, we reviewed our existing portfolio, seeking merger and acquisition opportunities in existing markets and reallocated capital towards growth. This resulted in the acquisition of the 52-bed Ortopedia Hospital in Adana and the 340-bed Kent Hospital in Izmir in Türkiye, as well as the divestment of IMU, our education arm in Malaysia.
Stronger Public-Private Partnerships
Deepening collaborations with governments and other private healthcare organisations is an important way in which IHH is able to make a positive impact within communities.
IHH will be providing free radiotherapy and radiosurgery for cancer patients referred from Malaysian public hospitals. As such, we will be able to extend care towards more cancer patients in the country through our network comprising Pantai hospitals, Gleneagles hospitals and Prince Court Medical Centre.
In April 2022, we also launched a tripartite partnership between Pantai Premier Pathology, Astra Zeneca and Prudential Malaysia to provide precision medicine as an emerging cancer treatment.
Capturing Rebound in Medical Travel
With the easing of COVID-19 restrictions, medical tourism have made a tremendous rebound. With highly-regardedmulti-specialty hospitals located in Malaysia, Singapore, India and Türkiye, IHH hospitals are well-placed to attract foreign patients seeking elective or high-acuity treatments.
We are also continually reviewing our clinical facilities to better meet the needs of medical travellers. For instance, Pantai Hospital Penang is expanding to offer an increased range of medical services, and broke ground to construct a new medical block and revamp its existing building. The construction is to be completed in adherence to the Green Building Index by the end of 2024.
Our core operations, comprising acute and surgical treatments, have also experienced strong recovery with the return of patients (local and foreign), resulting in significant revenue improvement.
2 | >2,000 |
new hospitals launched | new beds to be added in |
Malaysia, India and Türkiye | |
through organic expansion |
6 | IHH Healthcare Berhad Annual Report 2022 | 7 |
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Disclaimer
IHH Healthcare Berhad published this content on 17 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 08:46:09 UTC.