Covid-19 Impact and Group’s Response

HMG played a key role in supporting the country in tackling the spread of the Covid-19 pandemic. The Group demonstrated its dynamism and resilience by rolling out several initiatives to increase testing facilities across the country, deliver healthcare services despite movement restrictions, optimize Group resources, and respond to opportunities in the market.

Treating Covid-19 patients

  • Rapidly increased bed capacity to handle higher inpatient volumes created by Covid-19
  • Operated 50 new beds at MoH facility in Madinah within five days of being awarded the contract (staffed by 200+ HMG employees)
  • Established Covid-19 teams in all our hospitals to manage clinical outcomes and operational matters
  • Increased sterilization schedules

Ensuring quality of care of all patients

  • Infection control remains a high priority with zero recorded instances of outbreak at HMG facilities despite outbreaks in other hospitals
  • Created designated zones within all hospital facilities for admitted Covid-19 patients to ensure prevention of outbreaks
  • Rolled out first private Covid-19 testing facility in Kingdom with drive-through service for better client experience
  • Reduced entry points to our hospitals and introduced stringent screening protocols across all facilities
  • Reviewed and modified working practices at all patient-facing facilities
  • Physical patient pathways on attending a unit were amended as appropriate to minimize avoidable risks, including the provision of screening at reception, the introduction of temperature checks, increased equipment cleaning schedules, increased PPE requirements and Covid-19 patient checklists

Providing access to services despite movement restrictions

  • Accelerated digital services offering, through Solutions segment; important for boosting resilience of the business and adding value to multiple stakeholders e.g. home healthcare, e-pharmacy, LiveCare
  • Starting primarily from May, HMG received mild and critical Covid-19 cases that offset pressure on outpatient volumes and cash flows
  • Expanded e-pharmacy home delivery services, launched telemedicine through Live Care, expanded home care service offer
  • HMG launched a Rapid Response service (RRT) by deploying a multi-disciplinary team to respond to urgent medical care within 30-minutes at patient premises
  • Sufficient and appropriate availability of nurses and other frontline employees, including redeployment of employees between units and hospitals, as well as a number of initiatives focused on increasing nursing and healthcare worker capacity

Supporting group liquidity

  • The Group proactively managed its financial and liquidity position by restricting capital investment to all but essential and committed projects, reducing operating expenses including third party costs, achieving supplier discounts, and reviewing its cost structure on an ongoing basis
  • Participated in government private sector stimulus package
  • Actively managed debtors and creditors
  • Restricted non-clinical recruitment drives
  • Made arrangements for stand by working capital facilities from local banks in case required

Maintaining safety of employees

  • Arranged systems to allow remote access for designated staff
  • Rolled out safety protocols, training sessions to ensure adherence to precautions including social distancing and infection measures
  • Ensured consistent access to Personal Protective Equipment (PPE) and testing for all medical staff
  • Rolled out Covid-19 treatment training
  • Developed and implemented extensive guidelines covering screening, clinical care, infection prevention and PPE usage
  • Revised and adapted PPE protocols in line with increasing knowledge of the disease and acquired additional PPE
  • Provided vaccinations against seasonal influenza for employees and physicians

Addressing supply chain risks

  • Organized teams to ensure continuity of operations and provided immediate alternative contractors to cover manpower shortages
  • Coordinated a proactive response by procurement function to ensure supply of critical equipment
  • Expanded supplier pool and ensured constant communication with hospitals to ensure needs were met
  • Utilized HMG fleet to deliver group supplies
  • Secured additional storage facilities for building group inventory for medical supplies to avoid supply disruption

Saudi Arabia’s First Official
Licensed Center for
Covid-19 Testing

HMG was the first private healthcare group to receive a Covid-19 testing license in the Kingdom. Medical Diagnostic Labs (MDLAB), a part of HMG Solutions segment, offered Covid-19 testing to patients in the Kingdom from March 2020.

Management acted quickly in identifying an opportunity to provide further testing capacity in the Kingdom. The Group invested early in the necessary lab equipment to offer its patients lab testing. The facility rapidly became a revenue generating business for the Group.

Long-Term Strategy Remains Intact

Despite recent challenges, HMG’s long-term strategy remains focused on its three key pillars, with additional focus on growing the Company’s digital capabilities and innovation approach. The Group is committed to the expansion of its hospital footprint, including the North Riyadh Hospital (expected completion by end of 2023); South West Jeddah Hospital (expected completion by end of 2023); North Jeddah Hospital (expected completion by end of 2024); Maternity & Pediatric Hospital (New Takhassusi Expansion) (expected completion by end of 2024); and Medical Center at the Diplomatic Quarter (soft launch in December 2020).

Cloud Solutions will continue to be a growth driver, providing technical services for healthcare providers across the region. The Group will continue to expand and roll out Tele-ICU capabilities and continue to enhance its technology platforms.

Management aims to return to pre-Covid-19 top- and bottomline growth trajectory, margins and maintain its quarterly dividend cycle, and both Management and the Board are cautiously optimistic of improved macroeconomic conditions in 2021, as readily available and effective vaccines are rolled out in the GCC and internationally.