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Abdulaziz Alobaid, CEO of National Medical Care Co.
National Medical Care Co.’s (Care) new management is focusing on achieving net profit margins in line with industry averages, chief executive officer (CEO) Abdulaziz Alobaid told Argaam.
Care will work with a management consulting firm this year to develop a five-year strategy, he added.
Commenting on the financial results, the CEO explained that the rise in Q4 2020 earnings is due to the increase in the number of patients and clients, pointing out that the lower cost of services led to higher profit margins and increased profitability.
Alobaid noted that the profit partially compensated for the increase in provisions compared to last year, indicating that the company recorded a total bad debt provisions worth SAR 41.1 million.
Care’s net income from the Ministry of Health reached SAR 175.6 million in 2020, Alobaid said, adding that the payment period of the ministry's dues is longer than private sector clients.
Meanwhile, he indicated that the payments are generally made within six to eight months of receipt of the invoice based on the expected rejections determined by GlobeMed Co. (a third party).
Care reported a net profit after Zakat and tax of SAR 97.3 million for 2020, an increase of 21%, compared to SAR 80.1 million in the year-earlier period, according to data compiled by Argaam.
The company reported a net profit of SAR 22 million in Q4 2020.
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Care’s net profit rises 21% to SAR 97.3 mln in 2020 |
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