Hygeia Healthcare Holdings unfazed by China’s anti-corruption campaign

The oncology service-focused hospital sees new acquisitions and hospitals.

China’s largest oncology-focused healthcare service provider is unaffected by the new anti-corruption campaign, which has caused delays in hospital services in the market, according to online broker, UOBKayHian. 

In a brokerage statement, UOBKayHian pointed out that Hygeia Healthcare has a transparent management system which follows internal procurement and service policies.

“Hygeia Healthcare purchases drugs and medical devices as well as equipment directly from producers at substantially lower prices at the group level,” read the statement.

“Its hospital management team and medical professionals do not have the opportunity to be involved in the decision-making for procurement,” it added.

Hygeia also practices fair compensation to its employees, with 33% of its total revenue used for funding medical professionals’ earnings compared to 20% in public hospitals.

Hygeia is also confident that the anti-corruption campaign will promote integrity in the healthcare system, which will benefit them in attracting an increasing number of talents from public hospitals.

Currently, Hygeia is expanding its network by acquiring one to two hospitals and constructing one to two new hospitals per year. It expects 25% year-on-year growth in adjusted earnings excluding M&As in 2023.