Should flagging medical tourism alarm Raffles Medical?
There were fewer foreign patients in Q3.
According to OCBC, Raffles Medical remains a strong contender against its regional competitors despite flagging medical tourism.
Although the company recorded a lower volume of patients from Indonesia and Russia, it witnessed higher intensity cases such as the company’s bone marrow programme. So while it remains possible that some patients opt for other hospitals for treatments with cheaper costs, the company still caters to a premium segment of patients.
Further, the company has expended effort and resources in diversifying, as evidenced by its acquisition of International SOS (MC Holdings) Pte Ltd as well as its new centre in Japan.
OCBC also noted that Raffles Medical’s share price tumbled 16.6% from its 52-week high of $4.99 in July, or by 5.2% post Q3 results.