Sumitomo Corporation makes full-scale entry into private clinic business in fast-growing southeast Asia

Sumitomo Corporation makes full-scale entry into private clinic business in fast-growing southeast Asia

Investing in Malaysia's largest clinic operator to expand the healthcare business

  • By IPP Bureau | May 08, 2024

Sumitomo Corporation will make a full-scale entry into the fast-growing private clinic business in Southeast Asia through investment in CareClinics Healthcare Services, which operates private medical clinics in Malaysia.

CCHS is a private medical group operating 104 clinics in Malaysia. It has a total of approximately two million patients per year and provides community-based primary care services. Sumitomo Corporation first invested in CCHS in 2020 to provide convenient and high-quality medical services by leveraging its knowledge of chain store operations gained through its retail and pharmacy businesses. It has made additional investments in CCHS several times since then and is now the largest shareholder.

In addition to providing growth funds, Sumitomo Corporation provides CCHS with a variety of support, including developing strategies and strengthening systems for business development and internal controls. Specifically, we analyze the demand for clinics in each region, and in areas where demand is not being met, we establish operating systems that fit the lifestyles of local patients, such as extending the operating hours, to support the community’s healthcare infrastructure. We also standardize healthcare services across all clinics and use digital technology to centrally manage patient information to seamlessly deliver high-quality healthcare services.

By combining the strengths of CCHS and Sumitomo Corporation, the number of clinics has grown from 18 at the beginning of the collaboration to 104 (as of March 2024), making it the largest private health clinic networks in Malaysia.

Going forward, we aim to expand to 300 facilities by 2026 and build a solid business foundation in Malaysia. We also aim to expand our healthcare business in Southeast Asia, and provide better medical services, through expanding the clinic business to other countries and collaborating with the managed care business of SC Healthcare Holdings, our group company.

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