The proposal to privatize the National Heart Institute (Institut Jantung Negara – IJN) to Sime Darby group should not be approved.
The National Heart Institute is the best in this region and had enabled the poor to affordable world class heart treatment.
Over-commercialization of the health service/sector is not beneficial to the rakyat.
The healthcare sector had become a lucrative industry; it is difficult to imagine that Sime Darby can ensure the “CURRENT” treatment rates are maintained.
Even if, Sime Darby commits to maintain a ‘regulated treatment rate” it will be still much more expensive and I suspect in the future they will push up the rate. The commitment will most probably be hollow promises or with "escape clauses".
The non-commercialization nature of IJN had enable the specialists and doctors to focus on enhancing the skills and to be the best in their profession; however, a ‘profit-oriented” healthcare organization will eventually dilute and disperse these; instead the focus will be more on $$$ and to be the best in term of $$$ for Sime Darby.
It is natural for Sime Darby, as a business entity, to target IJN for privatization; the government should put the welfare of the people ahead of privatization or commercialization.
The National Heart Institute is the best in this region and had enabled the poor to affordable world class heart treatment.
Over-commercialization of the health service/sector is not beneficial to the rakyat.
The healthcare sector had become a lucrative industry; it is difficult to imagine that Sime Darby can ensure the “CURRENT” treatment rates are maintained.
Even if, Sime Darby commits to maintain a ‘regulated treatment rate” it will be still much more expensive and I suspect in the future they will push up the rate. The commitment will most probably be hollow promises or with "escape clauses".
The non-commercialization nature of IJN had enable the specialists and doctors to focus on enhancing the skills and to be the best in their profession; however, a ‘profit-oriented” healthcare organization will eventually dilute and disperse these; instead the focus will be more on $$$ and to be the best in term of $$$ for Sime Darby.
It is natural for Sime Darby, as a business entity, to target IJN for privatization; the government should put the welfare of the people ahead of privatization or commercialization.
Read also Leave IJN Alone by Marina Mahathir.
18-12-2008, The Edge Daily
Sime Darby confirms interest in IJN
by Lim Shie-Lynn
KUALA LUMPUR: Sime Darby Bhd has confirmed its interest to buy a stake in IJN Holdings Sdn Bhd, which operates the National Heart Institute, or Institut Jantung Negara (IJN).
In response to a query by Bursa Malaysia yesterday, Sime Darby said: “The company has written to the government expressing an interest in acquiring a stake in IJN Holdings. The company is awaiting an official response from the government.”
Sime Darby also said its proposed investment would be subject to due diligence and approvals from the relevant authorities.
The Edge Financial Daily reported yesterday that the Ministry of Finance (MoF), which owns IJN via its 99.99% stake in IJN Holdings, had submitted a proposal to the cabinet for the privatisation of the hospital. However, that has been met with objections from the Ministry of Health.
Met at Parliament yesterday, Deputy Finance Minister Datuk Kong Cho Ha declined to comment on the proposed IJN sale. Sources confirmed there had been talks between MoF and government-linked companies on the proposed divestment.
“No decision has been made yet,” a source said. It is understood that if Sime Darby takes over the hospital, the government will ensure that its treatment charges are regulated.
“As Sime may get to set up a private wing in the soon-to-be completed new wing in IJN, that private wing could be the cash-generating segment for IJN and Sime,” a source said.
Sime Darby has been eyeing IJN as the latter had gained recognition as the leading heart centre in the region with the number of referrals for complicated and demanding cases on the rise, sources said.
“The other part of the IJN appeal is the consistent number of patients it received because all cardio patients from government hospitals in the country are referred to IJN. As such, IJN has a captive market which has kept its bottom line high,” one of the sources said.
Nevertheless, an industry source said IJN’s monopoly over the government cardio patients referrals would gradually cease as there were plans to set up hospitals with heart centres in the country.
“There would be fewer government patients sent to IJN. The cardio patients would be sent to these hospitals instead. The Serdang Hospital and Kuching Hospital are ready to receive cardio referrals.
“There are plans for more peripheral hospitals and heart centres in Alor Star, Johor Bahru, Kuantan and Queen Elizabeth Hospital in Sabah,” the source said.
Still, Sime Darby would be able to leverage on IJN’s reputation as the leading centre for cardiac care in the region, OSK Research said in a note.
“If IJN’s privatisation were to take place, Sime Darby will be able to leverage on IJN’s strong brand and reputation, which will make it easier for Sime Darby to further grow its healthcare business.
“Sime Darby’s interest in taking over IJN is in line with the group’s mission to strengthen its private healthcare business through its newly established division, Sime Darby Healthcare.
“This jives with our view that there are enormous opportunities in Malaysia’s private healthcare sector, driven by strong demand due to the country’s growing ageing population, longer life expectancy and rising affluence,” it said. Since IJN’s establishment, it has treated over a million patients.
Sime closed 20 sen higher at RM5.50 yesterday.
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