KUALA LUMPUR (Feb 27): TPG-backed hospital operator, the Columbia Asia Group of Hospitals, which is planning to spend RM1 billion to expand its operations in Malaysia, is keeping mum over whether it is planning, together with TE Asia Healthcare Partners and Hong Leong Group, to consolidate their healthcare assets — spread over Malaysia, Indonesia and Vietnam — under one mega healthcare entity.

“At the moment, we do not comment on anything that is speculated in the news,” its managing director and group chief executive officer Dr Chan Boon Kheng told reporters on Tuesday after launching the latest addition to its string of hospitals here, the Columbia Asia Hospital Bukit Jalil.

“If there is anything firm, we will make [an] announcement,” Chan said.

The Edge Malaysia, in its latest report for the week of Feb 26-March 3, reported that TPG, along with its investee platform TE Asia Healthcare Partners and partner Hong Leong Group, are working on consolidating their healthcare assets under a mega healthcare group. Columbia Asia is said to be the vehicle for the consolidation, according to sources cited in the report.

The healthcare assets that are said to be in the consolidation are Columbia Asia Healthcare, Ramsay Sime Darby Healthcare, Beacon Hospital, Cardiac Vascular Sentral Kuala Lumpur, ALTY Orthopaedic Hospital and the recently completed PJ Integrated Centre of Advanced Surgery and Oncology. They are estimated to have a combined valuation of around RM15 billion.

It is understood that a share swap is being considered by the parties for the merger, which is expected to be completed by the middle of this year. The merged entity would have 4,275 beds in total, the weekly reported.

Columbia Asia, meanwhile, plans to spend the RM1 billion it has allocated to expand its operations in the country on acquisition, investment, as well as to expand the capacity of its existing healthcare facilities in Bukit Jalil and Cheras in Kuala Lumpur, Klang in Selangor, Batu Kawan in Penang, Seremban in Negeri Sembilan, and Iskandar Puteri in Johor.

“We will be opening a 200-bed hospital in Batu Kawan, which will be ready by the second quarter of next year. We are also currently expanding our hospitals in Cheras and Klang, from a secondary format with 60 to 80 beds to a comprehensive care model with 150 to 200 beds,” said Chan.

“On top of that, our Iskandar Puteri and Seremban hospitals will be going through expansions that will result in a comprehensive tertiary care model with 300 to 400 beds,” he added.

Currently, Columbia Asia offers 27 operational medical facilities across Asia, with 18 in Malaysia.