Challenging times for private healthcare sector

CGS-CIMB expects KPJ’s local operations to stay well below pre-pandemic levels in the third quarter of financial year 2021 (FY21) as Covid-19 cases remain high.(File pic shows a KPJ hospital)

PETALING JAYA: The rising number of Covid-19 cases in the country remains a challenge for the healthcare sector and a re-rating catalyst, especially for KPJ Healthcare Bhd, would be in the form of recovery in patient visitations, among others.

However, longer-than-expected gestation periods for its new hospitals and weaker-than-expected patient visitations would continue to impact its earnings for now.