They have already partnered with Massachusetts General Hospital of the USA in a strategic alliance that would benefit these training ventures. Apart from the systemic risks of the economic environment in Singapore and Asia, the management of HMI expresses concern over its manpower. HMI's negative working capital is also identified as a risk, but the IPO has helped this. Its hospital building lease is up for renewal in 2006, but the lease provides for another 10-year extension. The IPO was well accepted, as it was some 64 times oversubscribed.
Hospital management is a tough business.
It is essential to the community, and all trends point to more elderly in the future in need of more medical services, but you never see many really successful hospital management chains. The study is offered for informational purposes only and should not be regarded as individual advice or used as the sole basis for any investment decisions. Individual investors should seek the advice of a professional, as appropriate, regarding the evaluation of any specific information, opinion, advice, or other content. SPH AsiaOne Ltd. All rights reserved. They do not constitute investment advice, financial services or endorsements with respect to any company, security or investment.