Sie sind auf Seite 1von 10

Contents

(i) Introduction of KPJ Healthcare Berhad including its Vision and Mission statements, objectives and
short-term and long-term goals................................................................................................................ 2
Introduction .......................................................................................................................................... 2
Vision..................................................................................................................................................... 2
Mission .................................................................................................................................................. 3
Objectives.............................................................................................................................................. 3
Short-term and long-term goals ........................................................................................................... 3
(ii) Analyze the company and prepare a SWOT analysis, Internal Factor Evaluation (IFE), External
Factor Evaluation (EFE) and Competitive Profile Matrix (CPM)................................................................ 4
SWOT..................................................................................................................................................... 4
Internal Factor Evaluation (IFE), External Factor Evaluation (EFE) ....................................................... 6
Competitive Profile Matrix (CPM) ......................................................................................................... 7
(iii) Analyse its financial positions based on its Annual Report for 2017 and 2018. ................................. 8
iv) Summarised your findings and explain the strategic positions of KPJ Healthcare Berhad.................. 9
Bibliography ................................................................................................................................................ 10
(i) Introduction of KPJ Healthcare Berhad including its Vision and Mission
statements, objectives and short-term and long-term goals.
Introduction
KPJ [Kumpulan Perubatan Johor] started off 1981 in Johor with first home-based private specialist
hospital which lead the company as forefront of healthcare industry today. The company also
expanded gradually with 25 branches spread across the nation currently, 2 specialists in Indonesia,
one in Bangladesh, and a good-sized amount of share in Bangkok hospital bringing medical
services to nearly one million patients today. In addition of the facilities throughout nation, KPJ
extended their reach to the under-privilege communities through community services network
well-known as Klinik Wakaf An-Nur (KWAN) charity clinics providing medical support in and 1
Hospital Waqaf An-Nur (HWAN), 18 KWAN clinics and 5 mobile clinics in Kelantan, KL,
Selangor, and Johor bringing the KPJ close to the communities. [Refer Appendix I for Corporate
Structure]. The healthcare organization which is also Johor Corporation’s subsidiaries was listed
on Kuala Lumpur Stock exchange on 29th Nov 1994 was ranked as 2019 world best healthcare in
the 2019 International Living Annual Global Retirement Index with its outstanding rating on their
world-class healthcare infrastructure and customer-oriented services according to The Star Online
dated 7th February 2019.

Vision
With their Vision, quote “THE PREFERRED HEALTHCARE PROVIDER; fundamental purpose
is the delivery of exceptional health treatment, care and diagnosis to all our patients. We are
dedicated to being the preferred provider of care, with innovative use of technology, experienced
doctors and well-trained staff who collaborate to offer the best diagnosis and treatment plans.”. To
drive towards the Vision, KPJ have been adopting real time technology in cloud computing (known
as KPJ Clinical Information System [KCIS]) with capability to assess patient’s most updated
information to provide timely services as well as increase efficiency continuously providing
patients best treatment experiences. On top of that, the company also venture in futuristic
technology to enhance day to day medical experiences with KPJ's E-Pharmacy comes with online
ordering functionality, wearable technology, the Internet of Things (IoT) and Artificial Intelligence
(AI).
Mission
Besides, in line with KPJ’s Mission: “DELIVER QUALITY HEALTHCARE SERVICES; to
improve the health of the people and the communities we serve. Led by skilled and caring medical
staff, we are consistently focused on clinical excellence and innovative technology for superior
patient outcomes”, the group also invest in a retirement resort in Australia, Sarawak and build
Kuala Lumpur Senior Living Care (SLC) centre (THC) other than providing medical specialist
services in wide range of scope which many are major firsts in Malaysia’s healthcare field.

Objectives
To enable such vision and mission, ~13,000 nationwide and ~700 abroad KPJ staffs operate by
Core Values and Objectives of (i) ensuring safety (ii) delivery services with courtesy (iii)
performing duties with integrity (iv) exercising professionalism at all times & (v) striving for
continuous improvements. With all the determination to make available excellent services,
accreditation bodies such as the Malaysian Society for Quality in Health (MSQH) and the Joint
Commission International (JCI) acknowledges KPJ hospital’s effort and the healthcare company
have been certified by namely Integrated Management System (IMS); Quality Management
System (MS ISO 9001:2015); Environment (MS ISO 14001:2015); Occupational Safety and
Health (OHSAS 18001:1999) Systems as well as other certifications like SIRIM & ISO.

Short-term and long-term goals


With change as constant in medical field, the renowned KPJ management team have set both short
term and long-term goal for the whole organization to continue move forward as world class
customer-oriented healthcare by embracing the changes. Associate with their short-term goal to
have 35 hospitals and 21 Ambulatory Care Centre (ACCs) by year 2023, the organization forked
out more than RM 2bil to continue upgrade their services and infrastructure throughout either
locally or abroad. However, to ensure their corporate goal aligned with global initiatives – 15 of
United Nation Sustainable development goals prioritizing first 3 namely no poverty, zero hunger,
and good health as part of their business strategy as in to reduce community poverty by year 2030
through KPJ’s outreach program KWAN ; having BFHI (Breast feeding hospital initiatives
certification ; baby hatches, advocating employee work-life balance, provide smoke-free health
facilities, customer satisfaction index & senior and assisted living care. However, there are more
efforts KPJ are putting in to make sure they are aligned with their end goal as world class healthcare
infrastructure and at the same time align with United nation’s objectives supported by their 7
strategic thrusts namely capacity building, enriched customer relationship, innovation@ the core,
new niches, talent management, business process improvement and sustainable value for
stakeholders.

(ii) Analyze the company and prepare a SWOT analysis, Internal Factor Evaluation
(IFE), External Factor Evaluation (EFE) and Competitive Profile Matrix (CPM).
SWOT
Strength Weakness
Branding as market leader & Strong market share Talent retention/management
Wide range of specialist expertise & leading mainstream Liquidity/turnaround rate
specialist Consumer satisfactory index
Adoption of futuristic medical technology
Opportunities Thread
High demand for world class healthcare Economic uncertainty
Positive outlook for Malaysia GDP Healthcare regulations or policies change
Global Medical Tourism Competitors
Cyber security risk
Table 1 KPJ's SWOT Analysis

Strength
Branding as market leader & strong market share: as of year-end 2018, with nearly 14,000
employees globally including 1,176 medical consultants, KPJ operates on 3,313 operating beds leading
the market with inpatients of at least 300,000 and near to 2,800,000 outpatients mainly dominating 19%
of Malaysia’s private sector healthcare market. with Johor corporation as parent company, KPJ have
also became one of the well-known healthcare company throughout Malaysia household.
Wide range of specialist expertise & leading mainstream specialist: KPJ provide various range of
medical specialist to its patients which includes Oncology, Chemotherapy, Radiotherapy,
Ophthalmology, Obstetrics and Gynaecology. In line with its world-class medical services, KPJ
medical specialist are mostly major first with outmost expertise in Malaysia.
Adoption of futuristic medical technology: KPJ team are constantly innovate ensuring they fully
utilize the advancement of technology to increase process efficiencies. Success cases such as
“DoctorOnCall.com.my” implemented for KPJ Tawakal center, “KCIS2” & “HITS2” incorporating
patient details to ease monitoring & keep track of the latest information in order to drive more accurate
diagnostic of patient’s situation/illness.
Weakness
Talent retention/management: with higher demand of better healthcare & more competitor enter into
healthcare market, KPJ will have to face challenge on retaining their experienced specialists and staff.
As healthcare industry, its crucial to have the right talent ensuring they continuously major in each area.
Liquidity and turnaround rate: KPJ continue to expand & build more facilities, having enough
cashflow to turnaround and sufficient liquidity to support day to day operation will be a challenge.
Example: KPJ’s cashflow generate from operation for the company was negative (RM117,000,000)
which might be indicating cashflow management are not reaching expectation. Besides, the return to
break-even pointwq for every new hospital established are taking longer than expected going up to 5
year. (KPJ Healthcare Equity research, 2019)
Consumer satisfactory index: as a player in healthcare industry, KPJ have to be patient eccentric to
secure consumer’s confident on the specialist/the hospital provides to diagnostic/take care of their
healthcare. As of 2018, the healthcare tycoon was only able to achieve 87% in 2017 compared to its
competitor (IHH healthcare) achieving 89.9% in 2017.
Opportunities
High demand for world class healthcare: with government policies continuously encouraging and
highlighting importance of healthcare, the demand and prospect grow along and the growth forecast for
upcoming year are extremely positive. Government scheme such as B40 healthcare protection fund
raise the bar of healthcare awareness associated with the need of world class healthcare for patients
nationwide as more and more patient move towards private sector healthcare services. (Jaafar, 2019)
Positive outlook for Malaysia GDP: Malaysia economy trend is expected to perform well, and it is
also forecasted that earning levels rise simultaneously with the country’s progress which increase the
demand of better lifestyles including good healthcare services from private sector.
Global Medical Tourism: medical tourism had become one of the strongest growth sectors worldwide
in line with the demand of world class healthcare worldwide, KPJ had been playing a crucial role
putting Malaysia’s homegrown private sector healthcare provider in global arena for medical tourism.
Thread
Economic uncertainty: economic stability is one of the key factors for healthcare industry to maintain
sustainable growth. Uncertainty such as currency exchange fluctuation will eventually lead loss to KPJ
since there’s a need of imported advance medical equipment & imported medication due to certain
major specialist area do not have suppliers locally.
Healthcare regulations or policies change: with higher demand for private sector healthcare,
government intervention is unavoidable by introducing different quality standards as well as licensing
so that patient’s right is secure in the right hand and to ensure healthcare provider render their specialist
services with utmost integrity. However, to archive the requirement; KPJ will have to continuously
bear the cost of complying to the regulation & standards. Failure to do so might impact the company’s
reputation and accreditation of the company associated with the customer satisfactory index. The
downturn of reputation will eventually end up driving consumer away from KPJ due to lost of
confidence.
Competitors: KPJ’s key competitor in current market will be second largest healthcare provider IHH
Healthcare who conquer 15% market share of Malaysia healthcare industry today. IHH healthcare also
plays a dominant role in international market such as India, Singapore & others which KP yet to venture.
Cyber security risk: as technology plays an important role in KPJ’s day to day operation, it is a known
that potentially cyber security risk will be volatile in this borderless era. Patient’s related information
are extremely confidential and KPJ will need to keep up to speed on securing that information as part
of Personal data protection Act ensuring patients right to have information reserved.

Internal Factor Evaluation (IFE), External Factor Evaluation (EFE)


Rating:
(1) Major weakness (2) Minor weakness
(3) Minor Strength (4) Major Strength
Evaluation

Internal Strengths Weight Rating Weighted Score


Branding as Market leader & Strong Market Share 30.00% 4 1.20
Wide range of specialist ecpertise & leading mainstream
specialist 10.00% 3 0.30
adoption of futuristic medical technology 15.00% 4 0.60
Factor

Internal Weakness Weight Rating Weighted Score


Talent Retention/management 10.00% 2 0.20
Liquidity/turnaround rate 10.00% 1 0.10
Internal

Consumer satisfactory index 25.00% 1 0.25


[IFE]

Average Weighted Score 100.00% 15 2.65


Rating:
(1)Poor response to factor (2) Average response to factor
(3)Above average response to factor (4)Superior response to factor
Evaluation

Opportunities Weight Rating Weighted Score


High demand for world class healthcare 40.00% 4 1.60
Positive outlook for Malaysia GDP 10.00% 2 0.20
Global Medical Tourism 10.00% 2 0.20
Factor

Thread Weight Rating Weighted Score


Economic uncertainty 20.00% 1 0.20
Healthcare regulation or policies changes 5.00% 1 0.05
Competitors 10.00% 2 0.20
External
[EFE]

Cyber security risk 5.00% 1 0.05


Average Weighted Score 100.00% 13 2.50
Table 2. KPJ's IFE & EFE
Interpretation: KPJ shows strong indication of Internal factor evaluation with score of 2.65 above
average of 2.5. Their initiatives to venture into adoption of futuristic medical technology play an
important role helping KPJ in efficient daily operation and hence resulted in their strong internal
position. Meanwhile for External factor evaluation, the company hit a mere average of 2.50 due to
average response towards competitors in the aspect of not able to catch up with their competitor’s
customer satisfactory index.

Competitive Profile Matrix (CPM)


Recommended critical successful factor for healthcare industry are namely Teamwork
effectiveness , Contract management , Knowledge and competencies , Strategic decision
making , Resource and training ,Top management commitment and support , Equipment and
facility upgrading , Strategic planning , Information and communication ICT , Risk
management , Customer focus , Work environment (Ahmad Pakrudin, Abdullah@Mohd
Asmoni, Lee, Jaafar, & Mohammed, 2017). However, due to certain criteria are unable to
assess through KPJ’s and its competitors integrated reports or strategic report, therefore 8
critical success factors were selected out of 12 suggested.

Rating:
(1) Major weakness, (2) Minor weakness,(3)
Minor Strength, (4) Major Strength KPJ Healthcare IHH Healthcare Parkway Pantai

Critical Success Factor Weighted Weighted Weighted


Weight Rating Score Rating Score Rating Score
Strategic decision making &
Planning 20% 3 0.60 2 0.40 2 0.40
Competitive Profile Matrix

Resource and training 15% 3 0.45 3 0.45 3 0.45


Equipment/facility upgrading 10% 3 0.30 3 0.30 2 0.20
Information and
communication ICT 14% 4 0.56 1 0.14 2 0.28
Risk management 8% 3 0.24 3 0.24 3 0.24
Customer focus 18% 2 0.36 4 0.72 3 0.54
Work environment 5% 3 0.15 3 0.15 3 0.15
Oversea Market 10% 3 0.30 4 0.40 3 0.30
Total 100% 24 2.96 22 2.80 21 2.56
Table 3 KPJ's CPM

Analysis: Overall KPJ gain upper hand on Strategic decision-making segment and planning as well
as ICT category to lead competitive profile matrix compared to its competitor namely IHH
healthcare and Parkway Pantai. On Strategic decision-making segment, KPJ enforce their strategy
to adhere with United nation global impact sustainability development goal (SDG). With that they
introduced 7 thrusts as strategy to put through their corporate vision and mission with each tagged
to SDG. As for ICT, the major factor of KPJ being higher rating is adopting futuristic technology
embedded in their daily operation from front desk till operation room. Meanwhile for KPJ to
achieve world class healthcare, it will have to improve in sense of customer focus where IHH
healthcare is leading from customer satisfactory index. On the other hand, KPJ should also
consider expanding the scope oversea market as well due to IHH is one of the key players that
venture into multiple international market such as India, Singapore where healthcare demand is
also blooming.

(iii) Analyse its financial positions based on its Annual Report for 2017 and 2018.
With the change of strategic in 2018, the group able to mark remarkable RM 3.3Bil revenue
increasing 4% compared to year 2017. However, the growth was much lower compared to 2017
growth rate hitting 7%. ~MYR3Mil revenue decline was result of Indonesia segment loss by at
least 50% because of Indonesia government introduced a much stringent healthcare requirement
bound to Indonesia national health insurance system. The implementation also causing KPJ to
lose both inpatient and outpatient by 11-30% from the market. Meanwhile, KPJ registered a
marginal rise of 10% in net profit to RM 186.2Mil in comparison to 2017’s RM 173.3mil mainly
because of an observation of higher average revenue per patient, incline patient number and higher
surgery cases in KPJ’s specialist center in Pasir Gudang, Rawang, and Bandar Maharani.

Moreover, the Group was able to manage to increase its cashflow in 2018 by 45% giving the
company expansion opportunities to build new facilities/hospital as per KPJ strategy indicating a
healthy sign despite of the revenue trending & MYR currency fluctuation.

From Ratio perspectives, Current ratio is hitting high on 1.287 indicating KPJ Healthcare Berhad
have been improving to manage its obligation timely therefore maximizing its current asset. This
is also aligned with its working capital tremendous increment in 2018 compared to 2017.
Financial Position 2017 (RM ‘000) 2018 (RM ‘000)
Net Profit 173,296 186,185
Working Capital 26,506 255,061
Current Assets – Current Liabilities 905,082 − 878,57 1,142,446 − 887,386
Cashflow from operation 629,128 432,715
Ratio 2017 2018
EPS 0.04185 0.03776
Current Ratio 1.03 1.287
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 905,082 1,142,446
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 878,576 887,385
Revenue Growth 7.085 4.029
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑌𝑟 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 − 𝐿𝑎𝑠𝑡 𝑌𝑟 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 3,179,998 − 2,969,603 3,308,117 − 3,179,998
𝐿𝑎𝑠𝑡 𝑌𝑟 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 2,969,603 3,179,998
Table 4 KPJ's finance position & Ratio

iv) Summarised your findings and explain the strategic positions of KPJ Healthcare
Berhad.
Overall, KPJ health’s currently strategy to invest in futuristic technology, continuous capacity
expansion, and venture into medical tourism segment are profoundly in track with healthcare
market that is in high demand now. 2019 is a significant year for better financial position as with
the announcement of B40 healthcare protection fund that will inevitably increase the demand of
advance private sector healthcare services although it is predicted that medical expenses will rise
for the upcoming years results from climate change, more ageing population, and not to mention
the medical inflation that have been continuously hiking up the chart.

With all the positive outlook, there are; however, few improvements that needed to take into
consideration while advancing towards world class healthcare. As KPJ are confident that start-up
costs from new openings will be absorbed by ramp-ups from earlier openings and other hospitals
steady income, we are observing the risk of slower turnover rate than the KPJ management team
would have expect. Although in 2018, the group was able to increase the liquidity and cash flow
but with unknown economy stability that might incur; KPJ will have to plan cautiously for the
return to avoid any cashflow shortage from financial position perspectives.

Another watch-out that KPJ can keep on eye will be its’ technology advancement and risk
associated with it. To avoid potential legal or compliance risk for KPJ, there’s a need for control
to be in place so that regulation/act that been introduced by government are taken into
consideration for each aspect of implement KPJ plan to have in respective facilities or processes.

Besides, KPJ should also acknowledge on the importance of customer satisfaction in healthcare
industry since patient will always prefer better services quality. Improving customer experience in
hospital without incurring explicitly high cost will be a challenge for KPJ which might involve
processes efficiency enhancement for better customer experience like waiting time.

In conclusion, with the fact that rising of medical cost and economy slow-down might be a risk to
private sector healthcare group like KPJ, but with all the strategy that KPJ put in place to keep up
with the environment that change is a constant will allow KPJ keep momentum as market leader.
Bibliography
Ahmad Pakrudin, N., Abdullah@Mohd Asmoni, M., Lee, J., Jaafar, M., & Mohammed, A. (2017). CRITICAL
SUCCESS FACTORS FOR FACILITIES MANAGEMENT. International Journal of Real Estate Studies
Vol 11 Num 2.

Bernama. (2019, February 7th). The Star Online. Retrieved August 12th, 2019, from Malaysia ranks 1st in
world's best healthcare category:
https://www.thestar.com.my/news/nation/2019/02/07/malaysia-ranks-1st-in-worlds-best-
healthcare-category

Jaafar, S. S. (2019, January 2). Demand for private healthcare remains upbeat. Retrieved August 10,
2019, from the edge financial daily: https://www.theedgemarkets.com/article/demand-private-
healthcare-remains-upbeat

KPJ Healthcare Equity research. (2019, June 24). Retrieved from DBS Treasurer:
https://www.dbs.com.sg/treasures/aics/templatedata/article/equity/data/en/DBSV/012014/KP
J_MK.xml