Care says PSMMC contract generates SAR 120M in annual revenue

National Medical Care Co. (Care) said that the Prince Sultan Military Medical City (PSMMC) contract is established at a fixed rate that is calculated based on patient turnover and active footfall, rather than the number of beds occupied at a given time.

The total capacity is 250 patients at a time, with about 200 beds currently in operation, the Saudi-listed healthcare provider added during an investor meeting to review H1 2025 results.

Annual revenues from the PSMMC contract are estimated between SAR 100-120 million, depending on average occupancy and services provided, it noted, pointing to the potential for additional revenue from medical procedures not included in the basic package.

Based on its latest financials, Care delivered strong operational and financial performance in the first six months of 2025. This was driven by organic growth at its existing facilities and a positive contribution from the recently-acquired Al Salam Medical Health Hospital.

Care further indicated that the first-half revenues increased year-on-year (YoY), thanks to a 40% growth in patient count. During the six-month period, outpatient visits exceeded 460,000, with inpatient admissions also rising by 47% to more than 14,000.

Inpatient revenues leapt by 30% YoY for the same period, given an increase in inpatient admissions and higher average revenue per case. Outpatient revenues also advanced by 34% YoY on strong demand for outpatient care services across all locations, according to the company.

It added that surgical procedures surged by 44% to 12,000, with Al Salam Hospital contributing 18% of the total. Further, bed occupancy expanded to 81%, from 61% in the same period a year earlier, in tandem with a 16% capacity expansion.

On its financial position, Care stated that assets reached SAR 2.5 billion, marking a 1% increase year-to-date. However, liabilities declined to SAR 830 million, thanks to the repayment of long-term obligations.

Meanwhile, operating cash flows improved to SAR 80 million, compared to negative cash flows of SAR 17 million in the same period last year, backed by strong operational performance besides lower Zakat payments and end-of-service benefits.

Net cash and cash equivalents reached SAR 477 million by the end of June 2025, representing growth of SAR 213 million, per the company.

Care also reiterated its continued focus on strategic expansion, revenue diversification, and better operational efficiency, driven by its government contracts and diversified healthcare services lineup.

According to Argaam’s data, Care’s net profit accelerated to SAR 165.3 million in H1 2025, compared to SAR 150.8 million in the prior-year period. The second-quarter earnings amounted to SAR 79.9 million.