Thomson Medical – UOBKH
A celebration of life
Target audience: women and children. Thomson Medical Centre (TMC) focuses on specialist care for women and children by offering a comprehensive range of services in obstetrics & gynaecology and paediatrics. Its flagship 190-bed Thomson Medical Centre at Thomson Road was established in 1979. The hospital generates recurrent revenue from the provision of inpatient services such as accommodation, nursing procedures and use of facilities like operating theatres and labour suites.
TMC provides assisted reproductive programmes, such as in-vitro fertilisation, Intrauterine Insemination and Intracytoplasmic Sperm Injection, through Thomson Fertility Centre. Subsidiary Thomson Pre-Natal Diagnostic Laboratory helps parents in early detection of chromosomal abnormalities like Down Syndrome and Thalassaemia. The company also operates a network of seven women and children clinics in Singapore.
More babies and better margins. Deliveries at TMC reach record of 7,665 babies in FY07, an increase of 6.9%. This is achieved through promotion of the Thomson Medical brand, increased patient load seen by tenant specialists and referrals from Thomson Women’s Clinics. TMC has also recognised S$0.35m consultancy fee in FY07 for the hospital consultancy project in Vietnam. Net margin has expanded from 14.6% in FY06 to 18.1% in FY07 due to improved operating efficiencies and increased patient volume. This was achieved despite closure of two wards for renovation.
Upgrading Thomson Medical Centre. TMC plans to increase the number of tenant specialists and has completed the renovation of Level 3 and Level 5 inpatient wards to cater to increased patient volume. Level 5 is positioned as a premium ward offering differentiated services. TMC plans to add another two operating theatres for increased volume of surgical procedures. TMC has 3,200 members under the First Born Incentives (FBI) and Subsequent Born Incentive (SBI) programmes. Members, who are mothers-to-be, are entitled to retail and medical services privileges. These programmes build brand loyalty.
Expanding Specialised Services. Thomson Fertility Centre sees increased patient load both locally and regionally. Foreign patient numbers has doubled over the past year. TMC and partner Hanh Phuc will work together on an exclusive basis to develop women and children hospitals in Vietnam. . It is also exploring opportunities for providing fertility treatments in Vietnam. TMC will set up another Thomson Women’s Clinic in Ang Mo Kio Hub in 1H08.
Annual birth rate in Singapore increased 825 or 2.2% to 38,317 in 2006. The country needs 60,000 babies a year to replace the population. The Government is reviewing marriage and pro-creation incentives, such as increasing subsidies for child care services, extending maternity and paternity leave and instituting better work-life balance in companies, to encourage Singaporeans to have more babies.
TMC has stated dividend policy of 50% payout on net profit. The company paid total dividend of 2.5 cents/share for FY07, representing dividend yield of 3.6%.