Patient-Centric & Technology-Driven Annual Report 2013 CARE FOR LIFE Patient-Centric & Technology-Driven KPJ Healthcare Berhad (KPJ or the Group) is committed to pursuing the Group’s mandate to “Care for Life” through providing world-class patient care with professionalism and an undivided compassion to the many communities we serve. Our KPJ team is leveraging on the Group’s proven customer-centric approach and technology-driven innovation to continually exceed stakeholders’ expectations and deliver real value. KPJ’s commitment to being a true customer-centric hospital group is evident in the continuous improvements made to the quality of care and patient safety. Today, KPJ is undertaking various quality improvement programmes that include Integrated Management System (IMS) certication, 5S certication, as well as the Malaysian Society for Quality in Healthcare (MSQH) and the Joint Commission International (JCI) accreditation. KPJ is also making strong advances on the Standard People Practice (SPP) and Service Quality Management (SQM) fronts which are helping to reinforce the quality and consistency of services throughout the Group. The Group’s hospitals are also implementing the Planetree patient-centric care delivery model, which is committed to enhancing care from the patients’ perspective. To further strengthen patient safety standards, all KPJ’s hospitals continuously implement the 13 National Patient Safety Goals that include the WHO’s six International Patient Safety Goals (IPSGs). At the Group level, the Group Medical Advisory Committee (MAC) develops and monitors clinical governance activities and guidelines for the Group, while at the individual hospital level, the respective Hospital Medical Advisory Committee (HMAC) oversees compliance to clinical governance through various hospital clinical committees. In the way of technology-driven innovation, the Group continues to invest in leading edge equipment and develop state-of-the-art medical technology to ensure positive patient experiences as well as strengthen medical and surgical outcomes. The KPJ Clinical Information System (KCIS), a secure clinical system enhanced with electronic clinical documentation and audit trail functionality to mitigate the risk of incorrect information, is one such innovation. It is also available on mobile devices, one of its kind and the rst in Malaysia. As KPJ ventures forth, it is committed to taking ownership of every task, delivering real value to customers and tapping innovative technologies to resolve challenges. As the Group does so, it is condent of building strong patient-caregiver relationships, reinforcing its reputation and creating good shareholder value. Table of Contents 02 Vision & Mission 66 Corporate Governance 158 Financial Statements 03 Core Values • Statement on Corporate Governance • Directors’ Report • Statement on Internal Control and • Statement by Directors 04 Corporate Directory Risk Management • Statutory Declaration 08 Corporate Information • Audit Committee Report • Independent Auditors’ Report 09 Corporate Prole • Medical Advisory Committee Report • Statements of Comprehensive Income 10 Corporate Structure 100 Business Review • Statements of Financial Position • Consolidated Statement of 12 Network of KPJ Hospitals and • Hospital Operations Changes in Equity Companies • New Hospital Developments • Medical Tourism • Company Statement of 14 Financial and Operational Highlights • Biomedical Services Changes in Equity 16 Summary of Financial Statements • Service Quality Management • Statements of Cash Flows • Statement of Comprehensive Income • Corporate Responsibility • Notes to the Financial Statements • Statement of Financial Position • EduKATE - KPJ Healthcare 257 Statistics and Notice of 18 Corporate History University College Annual General Meeting 20 Awards and Achievements • Aged Care & Retirement Village • Shareholdings Statistics • Ancillary Services • Warrantholdings Statistics 22 Media Highlights • Highlights in Pictures • Compliance Information 26 Statement to Shareholders 156 Corporate Developments and • Listing of Properties 40 Board and Management Announcements • Notice of Annual General Meeting • Board of Directors • Statement Accompanying • Directors’ Profiles Notice of Annual General Meeting • Executive Committee Form of Proxy • Hospital Medical Directors • Hospital Management Committee • Divisional Committee Vision & Mission KPJ Healthcare Berhad (KPJ or the Group) has certainly grown from strength to strength and from success to success since our beginnings as a single hospital in Johor Bahru some 33 years ago. The Group continues to strengthen its presence, acquiring new ground-breaking technologies as well as tap dynamic partnerships driven by a shared aspiration to build healthier communities and a unwavering commitment to “Care for Life”. Today, KPJ is rmly entrenched as Malaysia’s largest network with 24 private specialist hospitals with a presence in almost every state. Coupled with our strategic investments in Indonesia, Australia,Thailand and Bangladesh, KPJ remains an attractive, well-rounded proposition for shareholders. Coupled with our BANGLADESH 24 THAILAND private specialist strategic investments in INDONESIA hospitals with a Indonesia, Australia, AUSTRALIA presence in almost Thailand and every state. Bangladesh. Our Vision is being As we go all out to implement our Mission of THE PREFERRED DELIVERING QUALITY HEALTHCARE PROVIDER HEALTHCARE SERVICES, to our patients as we endeavour to be their lifelong companion we remain committed to delivering world-class patient care with throughout their healthcare journey. To this end, we offer a continuum professionalism and an undivided compassion to the countless of highly sought after specialised medical solutions that transcend communities that we serve. At the same time, we continue to keep borders and cultures while covering the entire patient lifecycle from a keen eye on the provision of quality healthcare services through pre-natal to geriatric care. continuous improvements in patient care and outcomes. In all that we do, we are supported by our loyal team of over 10,000 dedicated employees who have passionately embraced the Group’s culture of excellence and are empowered with the skills to enhance patient care throughout our network of hospitals. employees Annual Report Report 2013 2013 02 KPJKPJ HEALTHCARE BERHAD HEALTHCARE BERHAD Core Values Exercising Ensuring Professionalism Safety At All Times Delivering Striving For Service With Continuous Courtesy Improvement The KPJ team undertakes its roles and responsibilities with a spirit of excellence and a passion that exceeds stakeholder expectations all the time, every time. They are guided by the Group’s Core Values of Ensuring Safety, Delivering Service with Courtesy, Performing Duties with Integrity, Exercising Professionalism at All Times, and Striving for Performing Continuous Improvement; all of which underscore our commitment to Duties With “Care for Life” throughout every aspect of our operations. By working closely together, embracing our Core Values, and prioritising Integrity patient safety and quality medical care, we are condent of gaining our patients’ condence, strengthening our reputation as a key player in the healthcare sector, and delivering sustainable value to all shareholders. KPJ KPJ HEALTHCARE BERHADHEALTHCARE BERHAD 03 AnnualAnnual Report Report 2013 2013 Corporate Directory BANGLADESH Sheikh Fazilatunnessa Mujib Memorial KPJ Specialized Hospital & Nursing College, Dhaka NORTHERN KPJ Ipoh Specialist Hospital KPJ Penang Specialist Hospital Taiping Medical Centre Kedah Medical Centre Sri Manjung Specialist Centre EAST COAST KPJ Perlis Specialist Hospital * KPJ Perdana Specialist Hospital KPJ Kuantan Specialist Hospital KPJ Pahang Specialist Hospital * CENTRAL KPJ Ampang Puteri Specialist Hospital SOUTHERN KPJ Damansara Specialist Hospital KPJ Johor Specialist Hospital KPJ Selangor Specialist Hospital KPJ Puteri Specialist Hospital KPJ Tawakkal Specialist Hospital KPJ Seremban Specialist Hospital KPJ Kajang Specialist Hospital Kluang Utama Specialist Hospital Sentosa Medical Centre KPJ Pasir Gudang Specialist Hospital KPJ Klang Specialist Hospital KPJ Bandar Maharani Specialist Hospital * KPJ Rawang Specialist Hospital KPJ Bandar Dato’ Onn Specialist Hospital * INDONESIA RS Medika Permata Hijau, Jakarta RS Medika Bumi Serpong Damai, Jakarta * Hospitals under development. Annual Report Report 2013 2013 04 KPJKPJ HEALTHCARE BERHAD HEALTHCARE BERHAD Corporate Directory THAILAND Vejthani Hospital, Bangkok EAST MALAYSIA Kuching Specialist Hospital Kota Kinabalu Specialist Hospital KPJ Sabah Specialist Hospital Sibu Specialist Medical Centre BANGLADESH THAILAND MALAYSIA AUSTRALIA INDONESIA AUSTRALIA Jeta Gardens, Brisbane KPJ KPJ HEALTHCARE BERHADHEALTHCARE BERHAD 05 AnnualAnnual Report Report 2013 2013 Our Technology-Driven Investments Being a progressive healthcare provider, KPJ is committed to investing in state-of- the-art medical technology and facilities to ensure patient safety and care. To date we have made substantial investments in well-equipped laboratories, cutting edge biomedical equipment as well as innovative integrated information systems and green hospitals. As we future-proof our network today, we are ensuring our sustainable growth tomorrow. Corporate Information REGISTERED OFFICE CORPORATE OFFICE PRINCIPAL BANKERS KPJ Healthcare Berhad KPJ Healthcare Berhad Malayan Banking Berhad Suite 18, Lot 1B, Level 12, Menara 238, 343, Jalan Pahang,