Mouwasat eyes 430 new beds in 2021, health ministry transfer claims rise 124% in 2020: MD

Logo of Mouwasat Medical Services Co.

Mouwasat Medical Services Co. is planning to add 430 beds to its medical network this year, managing director Mohammed Al-Saleem told Argaam in an exclusive.

A total of 200 and 230 new beds will be added in the expansion projects of the company’s Dammam and Madinah hospitals, respectively, he explained.

The Dammam hospital expansion is expected to reflect positively on Mouwasat’s financial results within 18 months from the commencement of operations.

Commenting on Q4 2020 financial results, Al-Saleem said net revenue grew by 6%, backed by the continuous improvement in the performance of the new specialist departments across all Mouwasat hospitals in 2020.

The fourth-quarter figures were also lifted by the continuous operating efficiency of available assets and sustained growth in the transfer claims from the Ministry of Health. The claims related to these transfers surged 124% year-on-year (YoY) in 2020.

Moreover, the fourth-quarter figures included a positive contribution from the Khobar branch, compared to a negative contribution of SAR 2.3 million in Q4 2019. The financials were also boosted by a decline of SAR 2.1 million in financing costs as the balance of loans decreased by the value of instalments paid during the year, as well as a drop in the cost of borrowing (SAIBOR).

Borrowing costs fell by SAR 6 million YoY in 2020. Total loans stood at SAR 745 million in December 2020, including SAR 96 million loans from the Ministry of Finance. The company paid off SAR 112 million loans in 2020, he concluded.

The medical services provider reported a net profit after Zakat and tax of SAR 528 million in 2020, up 25%, from SAR 421 million in 2019, Argaam reported.