IHH Healthcare has further solidified Penang’s role as a leading medical travel destination in Southeast Asia with its acquisition of Island Hospital.
As Malaysia’s top provider serving foreign patients, Island Hospital attracts over 1 in 3 medical travelers to the country, solidifying its position as Malaysia’s leading hospital for medical tourism.
Under the terms of the deal, IHH acquired a 100% stake in Island Hospital in a deal valued at RM4.2 billion. The acquisition adds Island Hospital to IHH’s existing presence in Penang, which already includes Gleneagles Hospital Penang and Pantai Hospital Penang.
Island Hospital and Affinity Equity Partners
Since its founding in 1996, Island Hospital has grown into a 600-bed quaternary facility recognized globally for its quality. With over 119 specialists across 40 specialities and centres of excellence in cardiology and cancer accredited by the Australian Council on Healthcare Standards.
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With Affinity’s investment in 2015, Island Hospital grew its foreign patient volumes threefold and profitability more than tripled. The deal marks a successful exit for Affinity after growing the facility into Malaysia’s top private hospital network for medical travelers.
“I am delighted that the vision of the Island Medical City, an ambitious work-in-progress, will continue under the stewardship of IHH.” remarked Mark Wee, Founder and CEO of Island Hospital.
Strategic Rationale for IHH
As one of the world’s largest private healthcare groups, the acquisition allows IHH to further consolidate its presence in Penang, where it already operates Gleneagles Hospital Penang and Pantai Hospital Penang.
With Island Hospital as the top player focused on medical tourism, this deal strengthens IHH’s position in this market and provides an opportunity to leverage Island Hospital’s reputation and integrate its specialist services into the IHH network across Asia.
IHH Healthcare’s Group CEO Prem Kumar Nair, who has over 30 years of experience in the healthcare industry as both a physician and executive, spoke with Reuters in December that the company was also pursuing acquisitions in countries such as Indonesia and Vietnam.
Medical Concierge Services in Penang
Medical concierge services view IHH’s addition of Island Hospital positively.
“The quality of care and services offered to overseas patients — particularly those from Indonesia, which has been a major focus for Medical Concierge Asia — will surely increase as a result of this calculated decision.” commented Dr Yusof bin Ahmad Khairuddin, Medical Affairs Manager, Medical Channel Asia.
He also spearheads Medical Concierge Asia, a premium service that connects international patients to partner hospitals in Malaysia, Singapore, and other countries around the region.
“We are convinced that our patients will get access to a wider spectrum of top-notch medical care and an even more seamless healthcare experience thanks to the experience of IHH Healthcare Group and Island Hospital’s esteemed facilities.” he said.
“To make sure that every patient referred by Medical Concierge Asia receives the best care possible while visiting Penang, our team is eager to work closely with Island Hospital.”
This deal is expected to cement Penang’s role as a premier hub for international patients seeking specialist treatment and medical services in the region.
