What Sime Darby was eyeing in IJN

The government-owned National Heart Institute (IJN) is in the midst of a RM230 million expansion plan - that would be public money - to buy more equipment and to build a new wing, which would be completed next year.

This from The Edge:

The new wing would give it an additional 192 beds, four new operating theatre complexes, new intensive care units and coronary care units, dialysis centre, health screening centres, cafes and shops, according to the website.

Apparently, the plan was for Sime Darby to ride on IJN’s reputation, painstakingly built by the government and the IJN team over the years, and its “captive market” as a base to draw more patients - locally and from the region (medical tourism) - possibly into a private wing.

From another Edge report:

“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.

Sorry Sime Darby folks, any takeover appears likely to be met by strong public opposition. Just look at the public outcry to news of the possible privatisation - before it was hastily postponed.

See here for Aliran’s condemnation of the secrecy that surrounded the negotiations between the government and Sime Darby.