IHH Annual Report 2019

IHH’s business strategies are aligned to our values and purpose of touching lives and transforming care. To sustain our competitive edge in a highly competitive and volatile marketplace, we continue to focus, scale and optimise our multi-country Supported by our Sustainability Strategy 1 Build Trust With Our Stakeholders Geographical Cluster Strategy Geopolitical risk Foreign exchange risk Link to Principal Risks Bribery and corruption risk Cybersecurity risk Disease outbreak risk Strategic Report Business Strategy What We Are Doing For IHH, the foundation for strong and sustainable returns to stakeholders is to double down on building trust with our stakeholders. This means making the following commitments to the individual stakeholder group: i. Our patients and their loved ones We will always put our patients’ needs first and go the extra mile to provide quality and exemplary care. We will also nurture a relationship with them that makes them trust that at any price point, they will get better treatment, care and outcomes from our hospitals than from anywhere else. ii. Our people We will build caring and inspiring work environments for our people in which they feel empowered to succeed and shape their futures. iii. Our partners We will work together with our partners with respect and honesty for the mutual benefit of all. iv. Our shareholders We will balance purpose and profit to achieve long-term sustainable growth and shareholder value. v. Our communities We will go beyond just providing our healthcare services to do good for the communities in which we serve. We pursue a geographical cluster strategy for growth that sees us expanding our hospital network coverage in IHH’s established clusters in metro areas to achieve greater economies of scale. Our decisions on capital allocation are based on the following logical growth framework: i. We expand existing hospital facilities that are already at near maximum operating capacity. Such facilities can be ramped up very quickly as they already have an existing patient demand, a pool of existing doctors and corporate overheads. ii. We build greenfield projects or acquire brownfield facilities within IHH’s established cluster that will give us the opportunity to deepen our Centres of Excellence. With a strong cluster, we can also drive economies of scales and extract cost synergies in areas such as shared services, marketing and procurement for all the hospitals within the established cluster. iii. We will conduct a review of our portfolio of asset which will involve divestments of underperforming assets outside our focus clusters and redeploy capital to improve returns. Our Progress in 2019 With our new vision “To be the world’s most trusted healthcare services network”, we have embarked on creating a high-trust organisation. One example would be promoting price transparency for our stakeholders to better manage healthcare costs. On that front, we introduced more than 250 fixed price packages at Gleneagles Hong Kong and Price Guarantee Procedures for selected services at our Singapore Hospitals. This is to provide price certainty for our patients when they engage our services and have a peace of mind as they receive excellent treatment, care and outcomes at our hospitals. In addition, we continue to focus on developing the potential of our people through our Management Associate Programme (MAP) and Individual Development Plan (IDP), which offer on-the-job training and career development opportunities for our people. We are in the process of acquiring Prince Court Medical Centre in the “Golden Triangle” of Kuala Lumpur, which allows us to tap further on the medical tourism market in Malaysia, and in particular, the Klang Valley. This private hospital also augments the Group’s clinical talent pool. We made progress in Greater China with the opening of Gleneagles Chengdu in October and the ramping up of operations in Gleneagles Hong Kong. In Turkey, we have expanded operations for Acibadem Altunizade Hospital and increased the capacity of our flagship Acibadem Maslak Hospital to 472 beds since the completion of its new block expansion in November 2018. Quality Healthcare To prioritise patient experience and encourage feedback to improve satisfaction levels and to continuously benchmark our standards for quality to international standards throughout our operations. See page •³ on Principal Risk for more information IHH Healthcare Berhad | Annual Report 2019 44