The availability of necessary medical supplies will be limited until production and supply chains stabilize and the depreciation of the rupee is likely to have a significant impact on operations as a large proportion of medical supplies are imported, increasing costs, Dr. Bandula Wijesiriwardena, chairman of Lanka Hospitals Corporation PLC stressed. “As we emerge from the lockdown, it is clear that the year ahead will require a constant recalibration of health, humanitarian and economic concerns which are or could be exacerbated by factors such as unemployment and loss of livelihoods, supply chain disruptions and food security. Depreciation of the rupee is likely to have a significant impact on our operations as a large proportion of medical supplies are imported, increasing costs. Availability of necessary medical supplies may also be limited until production and supply chains stabilize,” Wijesiriwardena told shareholders in the annual report 2019/20. Speaking further he also expressed the following: “The April terror attacks had a significant impact on medical tourism with patient numbers falling from an average of 350 per month to a mere 10, even after recovery. COVID-19 impacts have been even more severe with only urgent medical procedures being carried out due to relatively high risk to specialist consultants, many of whom work in government hospitals. Additionally, the fear of contracting the infection has kept patients away despite stringent preventive measures being implemented throughout the hospital to maintain a sanitary environment. Price regulation and competitive pressures supported a moderation in healthcare related inflation. Rapid advances in technology in diagnostics, therapies and equipment have historically required high levels of investment to maintain a competitive advantage, which is difficult to sustain given the size of the market and the number of competitors. This is a key area of concern as payback periods are generally long due to the capital outlay involved and the training of teams in handling the new equipment. Depreciation of the rupee and the decline of numbers of medical tourists exacerbated the issue, dampening our own appetite for investment. We will continue to review innovations and their financial viabilities in order to balance the need for progress with available resources and stakeholder needs,” he added. Further, Lanka Hospitals Corporation PLC stated that it expects the short-term drop in disposable income caused by Covid-19 to lead certain segments of their customers to opting for government healthcare. Nevertheless, it expects conditions to normalize over the medium to long-term as economic activity gradually recovers.
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