THE Pun Hlaing International Hospital in Hlaing Tharyar township, Yangon, was unlikely to turn a profit within the next two years due to operational expenses and upgrades, according to the head of the hospital’s principal investors, Mr Serge Pun.

“After considering the possible difficulties, it is expected that the hospital will continue to show losses for another few years,” said Mr Serge Pun, who is chairman of both SPA Myanmar Ltd, which has a 60 percent stake in the hospital, and First Myanmar Investment Co. Ltd (FMI), with 35pc. Local and foreign individual investors account for the remaining 5pc.

Pun Hlaing International Hospital (PHIH) was unable to make a profit due to the installation of new medical facilities and the impact of general market conditions, including insufficient demand for its services, Mr Serge Pun said.

“Over the past year, we have been faced with many difficulties, especially the volatile fuel prices,” he said at FMI’s annual general meeting this month. “We had to use more fuel (to run generators) and our expenses topped the operational costs.”

As global oil prices peaked mid-year, the hospital was forced to reevaluate is budgeted expenditure “and it showed that we had to lose more money than we had calculated”, Mr Serge Pun said.

The installation of modern medical facilities was also a drain on the hospital’s accounts, he added. “Our vision is to establish an international-standard, modern hospital in Myanmar. To do that and to provide our community much-needed service, we have to install higher-quality medical facilities. That means we will have to spend more money.”

However, PHIH would become profitable once upgrades had been completed, he added.

“I’m also optimistic about its future because we could reduce our fuel expenses this year,” said Mr Serge Pun, citing the 33 KVA power substation being built in Hlaing Tharyar township where the hospital is situated. “Once this substation is finished, it will ensure a stable and uninterrupted power supply at affordable prices for the coming years.”

He said the hospital also stood to increase its income in the next few years.
“Only considering the cost for treatment, PHIH offers equal service but is half the price of (hospitals) abroad. Besides, family members usually go with patients, so that (overseas) travel expense is also added. People will soon become more aware of that expense and our service, and then we could make money.”

Mr Serge Pun added that PHIH would run at any cost, profitable or not, as he said it was also the pride of the country.

“This hospital has a social value. We take a lot of pride in running an international-standard hospital like this in Myanmar. We will continue to maintain the image of being the most modern hospital. With our commitment to that, I also believe it will also become the top choice in Myanmar,” he said.