PETALING JAYA: Hospital players are ramping up their efforts to improve their core businesses post-Covid-19, amid expectations of a material rebound in non-Covid-19 patients.

       RHB Research said this is being done via digital avenues and the growth of operations overseas.

       “As governments keep economy and international borders open, we are optimistic on a material rebound in non-Covid-19 out-patients and in-patients, both local and international, through hospitals,” it said in a report.

       Spending for healthcare facilities would also remain strong while concerns over inflationary pressures and lofty valuations will take centre stage in 2022, it added.

       In its report to clients yesterday, RHB said there were four main aspects of the healthcare services sector across Asean, namely environmental, social and governance (ESG) investing, demographics and key health concerns, healthtech, and the post-pandemic outlook.

       The sector, it said, had a pivotal opportunity to unlock value through the ESG and sustainability criteria.

       “Hospital firms under our coverage are aware of their ESG responsibilities but may take time to craft clear quantitative guidance or targets,” it said.

       On demographics, it said Asean is characterised by its diversity, so its health status is shaped by the differing rates of socioeconomic development and demographic transitions.

       On key health concerns, RHB pointed out that non-communicable disease (NCDs) were the leading cause of mortality in Asean.

       “The increasing number of NCD cases, coupled with the expanding portion of the ageing population, will result in greater demand for healthcare treatment at hospitals, thereby providing lucrative investment opportunities for private hospital players.

       “It may enhance economic burden in Malaysia and Thailand. Meanwhile, Indonesia’s rapid economic progress has also led to lifestyle changes and triggered a higher prevalence of NCDs.”

       On healthtech, RHB said such industries have gained traction thanks to the pandemic, with the adoption of digital health solutions skyrocketing.

       “We see the Singapore and Thai governments paying more attention and providing clear plans/roadmaps for healthtech businesses vis-a-vis their Indonesian and Malaysian counterparts.”

       It noted that all public-listed hospital players had several initiatives in place to improve operational processes and enhance efficiencies.

       “Healthtech is viewed as a revenue enabler rather than a separate business model.

       “Singapore may continue to dominate the region’s investment activity, followed by Indonesia,” it said, adding that the latter provides ample opportunities owing to its huge population and number of healthcare issues that can be addressed through the adoption of digital platforms.