SINGAPORE (April 25): Raffles Medical Group posted a 3.7% rise in 1Q earnings to $15.5 million from a year ago on the back of higher revenue.

Revenue for the Jan-March period rose 23% to $116.9 million.

This was mainly due to strong contributions from the Healthcare Services and Hospital Services divisions, which increased by 36.3% and 15.2% respectively.

Revenue growth was mainly driven by increased patient load, greater patient medical needs, higher revenue contributed by more specialist consultants as well as the newly acquired International SOS (MC Holdings) and its subsidiaries (MCH).

Excluding revenue contribution from the newly acquired MCH, the group’s revenue would have grown by 11.6%.

However, strong revenue performance from Hospital and Healthcare Services was offset by higher staff costs, inventories and consumables used as well as operating lease and other operating expenses.

The increase in staff costs was mainly due to the recruitment of more specialist consultants and staff in preparation for manning more facilities as well as increased staff costs at MCH.

In its outlook, the group says the Raffles Hospital extension project is progressing according to schedule and when completed by 2017 it will contribute an additional 220,000 square feet of gross floor area to Raffles Hospital.

Meanwhile, Raffles Holland V has obtained the Temporary Occupation Permit in March 2016 and is on track to open for business in June.

Raffles Medical closed 0.22% higher at $4.59 on Friday.