When we say that Thomson Medical Centre (Thomson Medical) is a prominent local brand, it is in fact an understatement. Winning the Singapore Prestige Brand Award (SPBA) not once but 6 times in a row (from 2004 to 2009), Thomson Medical achieved a remarkable milestone of being the first company to be inducted into the SPBA – Hall of Fame – a prestigious and elite circle of brands, in December last year.

Just recently, the Mainboard-listed company added another feather to its cap by beating other hospitals in the Customer Satisfaction Index for Singapore, under the Customer-Centric Initiative spearheaded by SPRING Singapore and NTUC. Garnering a score of 73.3, which was above the industry average of 68.9, Thomson Medical reigned supreme in the healthcare sector for 2009.

Celebrating Life

Founded in 1979 by Executive Chairman Dr Cheng Wei Chen, Thomson Medical has been a niche healthcare provider for women and children since inception. Boasting an excellent pool of highly experienced obstetrics and gynaecology (O&G) specialists and paediatricians, Thomson Medical has grown by leaps and bounds throughout these years.

Last year alone, a record-breaking 8,907 babies were delivered at Thomson Medical – the highest across all private hospitals. “Since 2002, the number of babies delivered at Thomson Medical have grown consistently every year, exceeding our expectations,” Allan Yeo Hwee Tiong, Group Chief Executive of Thomson Medical, commented during an exclusive interview with Shares Investment (Singapore). “For the past 3 to 4 months, we average 800 deliveries a month, which is quite a feat, considering that other larger hospitals are delivering around 400 to 500,” he added.

Yeo: Our near-term challenge will be to make Thomson Medical into a regional brand

Even though it is mainly targeting the middle to upper income group, the company does not ignore patients who want a lower class of beds. According to the management, the 190-bed Thomson Medical has over 80 single rooms, which are always fully occupied. “If there is ever one complaint people make about the company, it would be the difficulty in getting a single room,” Yeo remarked.

Unlike traditional hospitals, Thomson Medical’s ambience and décor distinctively oozes a resort-style feel. Notably, its VIP rooms and premier wards are complete with luxurious interior finishing and relaxing spa music. They are also equipped with a patient bedside terminal, comprising an interactive nurse call that allows for visual contact and communication with nurses. Patients can also surf the internet, play games, watch movies and shop on-line for a host of mother and baby products available in the hospital.

As highlighted by Yeo, Thomson Medical charges one of the most competitive room rates amongst all private hospitals. Based on statistics published quarterly by the Ministry of Health, a one-bedded ward (normal delivery) at Thomson Medical costs $4,334, more than $200 below the industry average.

Apart from delivering quality services, Thomson Medical also aims to become a knowledge provider. As such, the company has earlier launched ThomsonBaby.com and Thomson Baby Planner. Supported by SPRING Singapore under the Technology Innovation Programme, ThomsonBaby.com is the first interactive and personalised pregnancy and baby website developed by a local hospital. Both the website and the Planner provide educational content and acts as a one-stop shop for expectant mothers and their families, helping busy parents save time and money.

“We are also the first hospital in Singapore to introduce confinement nannies. These nannies undergo extensive hands-on training programme at our hospital,” Yeo said.

Making patients feel at home

In The Pink Of Health

From FY06 to FY09, Thomson Medical has been registering steady progress in terms of its top- and bottom-lines. For the first quarter ended 30 November 2009, the company raked in net profit of $3.5 million, a 23.9% year-on-year rise, on the back of a 14.6% revenue jump to $18.8 million. Its gross margin stood at 43%.

The management attributed this improved performance to increases in inpatient admissions, deliveries and ancillary services. More importantly, the Thomson Women Cancer Centre, which was established in February last year, has started making positive bottomline contributions.

In a bid to further boost its organic growth, Thomson Medical has recently set up an 80/20 joint venture company, the Thomson Paediatric Centre, with 2 senior paediatric consultants, Dr Ang Poon Liat and Dr Ang Ai Tin, to provide paediatric services in Thomson Medical.

Meanwhile, the company also intends to leverage on its premier brand name to attract more senior O&G specialists to take up clinic tenancy and, at the same time, continue to expand its existing network of 7 satellite clinics under the Thomson Women’s Clinic brand name to provide better outreach to the neighbourhoods island-wide.

Overseas Opportunities

On the overseas front, Thomson Medical’s flagship hospital consultancy and management project is slated to begin operations in 3Q10. Located in Binh Duong Province, Vietnam, the Hanh Phuc International Women and Children Hospital is much larger than its Singapore counterpart, with around 260 beds in total. For the uninitiated, Binh Duong Province is the fastest growing Province in Vietnam and is the place where the Vietnam Singapore Industrial Park is situated.

In fact, Thomson Medical will be working exclusively with its Vietnam partner on 3 hospital projects. “We have completed the business plan for the proposed development of our second hospital consultancy project in Hanoi and are still looking for a suitable land site,” revealed Yeo.

Artist impression of the Hanh Phuc International Women and Children Hospital

Expecting positive contribution from Vietnam in 2011, Yeo mentioned that over 1 million babies are borned in Vietnam every year, while Singapore’s national birth rate is a mere 38,000. The affluence level in Vietnam has also gone up significantly. Hence, there are certainly huge opportunities for Thomson Medical to capitalise on. “Our near-term challenge will be to make Thomson Medical into a regional brand,” Yeo exclaimed.

On whether Thomson Medical will see a dip in deliveries in the Year of the Tiger, Yeo remains sanguine, saying that even if deliveries do drop, the company will strive to grab a bigger market share of the smaller pool. “If ministers, high-ranking officials and celebrities all come to Thomson Medical, there must be something right about this place, isn’t it?” Yeo concluded.