Nanyang Polytechnic
School of Business Management
ARDC TEP Training
Knowledge Management Training Exercise
04/05 S2 Round 1
Team 3
Submitted to: Mr Tan Ser San
Kee Chew Lian
Terence Quek
Ng Wee Hiong
Kow Li Qiu
Goh Jin Hao
033018Q
021765H
031817G
032923F
030880K
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Table of contents
Proposal……………………………………………………………………3
Scope of study…………………………………………………………………………4
Methodology…………………………...……………………………………………….4
Introduction……………………………………………………………………………..4
History…………………………………………………………………………………...6
List of other healthcare companies and background…………………………..8
Strengths and Challenges……………………………………………………………9
Factors caused by industries within Singapore and foreign countries…....10
Present situation of Singapore Healthcare industry…………………………..12
Comparisons between Singapore's healthcare industries
with other foreign healthcare industry………………………………………..….13
Conclusion…………………………………………………………………………...…15
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Proposal
Title: Case study research approach in analyzing Econ Health Care Limited, a
successful Singapore’s enterprise.
Why this research is relevant and important?
Recent years, Singapore government had been encouraging entrepreneurship in
our fellow countrymen. This mindset is continuously being instilled in the young
people whom are keen and bold to crave out their own businesses in this
competitive era.
Econ Healthcare Limited is one good example of a successful entrepreneur story
in Singapore. Thus, by looking deeper into how the company had managed to
come this far would enable us to have a better understanding of how
entrepreneurship plays an important role in their early years of operations. This
would also be a great learning experience for us, meaning that acquiring the
required knowledge would prepares us better when we enter into the realistic
world in the future. Also, we need to understand the risks and advantages to
venture beyond individual’s comfort zones accept risks and carve niches for
ourselves as an entrepreneur.
In addition, Econ Health Care is one of the prime providers of medical services
and equipments. Thus, the need to investigate and look into the medical services
in Singapore would enlighten us a lot. It pulls our attention to the healthcare
services in Singapore and how healthcare services can benefit the whole
community. Previously, we had never put much effort into obtaining further
knowledge and information about the medical services in Singapore. Thus, this
would be another great learning point for the team.
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Scope of study
The scope of study mainly focuses on two points. They are:
1. The background of Healthcare and medical industry in Singapore.
2. The background story of a successful entrepreneurship company – Econ
Healthcare Limited.
We have done a drilling down for these two main points. All these can be seen in
our goal-setting and drilling down plans in the report. The work is distributed
amongst our teammates to increase effiency and effectiveness.
Methodology
The information for our case study is obtained from the following sources.

Internet

Resource Center in NYP

NYP Library

Econ Healthcare Limited Annual Publication
Introduction
Singapore has one of the highest increasingly ageing populations currently
worldwide. Thus, eldercare services are essential to cater to the need of this
trend. Eldercare services are designed in such a way that it provides assurance
to family members and relatives for elderly family members who are no longer
able to support themselves and are not independent.
In Singapore, eldercare services aim to provide the needy aid and assurance for
them to live independently. Besides providing basic survival essentials, eldercare
services also include organizing activities & programs for these senior citizens.
Elders often connect us to old folk homes. Singapore has got plenty of homes of
the elderly & care centers which provide day care services to busy working
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families who do not have time to take care of the old folks at home. And also,
provision of help to those who are physically disable.
Of the many Health care centers in Singapore, Econ Healthcare is a very
successful example of an entrepreneur story which is able to provide a high
standard of medical services and contribute to the Singapore society.
Econ Healthcare limited was establish in 1987 with the mission to provide high
quality and customer-focused healthcare services .It provides hospital services
(WestPoint Family Hospital) and also residential care services (Medicare Centre
Services, Nursing Home Services, Respite Care Service, Day Care
Service)Professional Care Services(Econ Rehabilitation Services, Traditional
Chinese Medicine Services ,Home Care Service, Ambulance
Service)Management Services(Hospital Ward Management, Econ Health
Management Service)Other Services(Caregiver Training Program, Franchise
Program). Their basic aim is to provide a holistic healthcare service.
Econ Healthcare Limited provides services like:

Residential nursing care services

Day care services

Respite care services

Physiotherapy services

Western and Traditional Chinese Medicine (“TCM”) treatments
And ancillary services like:

Hospital management services

Nursing care training

Ambulance services

Home care services

Sale and rental of healthcare equipment and accessories
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They have been around since 1987 with 5 nursing homes and 2 Medicare
centers in Singapore and being first in the industry to achieve ISO 9002
Certificate in 1996, ISO 9001:2000 Certificate in 2002, Singapore Quality Class
status and Singapore Promising Brand Award in 2003. This shows that they are
always working towards providing the best medical care towards all patients and
needy.
History: Econ Healthcare Limited in the past and how they developed
Established in 1987, Econ Healthcare Limited has grown in strength and
expanded our range of healthcare services over the years to meet the growing
needs of our customers at the community level. As a result of our commitment to
provide excellent service to the customers, we are now recognized as the leading
healthcare provider in Singapore enjoying more than 30% of market share within
the industry. Our proud achievements attest to our high standards of nursing care
and quality service which we always deliver to our customers
Econ Healthcare, together with our strategic partners in Singapore and overseas
countries, have more than 200 years of combined experience and expertise in
the areas of planning, design, development and management of facilities and
services for the medical and healthcare industry.
Through our extensive network of business cooperation, we are able to provide
our clients a one-stop service in the following areas: plan and build healthcare
institutions, manage the operations and facilities of these establishments and
provide training to healthcare staff. The bleak condition of old folk’s homes in
general stirred Ong Chu Poh so deeply that he left his job with a multi-national
company to establish a home for senior citizens. “I felt a sense of unhappiness
at how the aged were treated at old folk’s homes, the premises, and the poor
hygiene. “So I decided to set up a centre that offered them quality treatment as
well as dignity,” said Ong, adding that many senior citizens did not want to be
associated with old folks homes as they did not want the stigma of rejection.
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The nursing home, known today as ECON Healthcare Limited, was set up in
Singapore during the late 80s, at a time when such services were unheard of.
Challenges along the way left Ong a near bankrupt within the first two years, but
perseverance paid off and ECON Healthcare became the first nursing home
provider to be listed on the Singapore Exchange besides winning numerous
awards and ISO accreditations.
References:
 http://www.econhealthcare.com/about.htm
 http://www.listedcompany.com/ir/econhc/web/home.cgi?header=1
Current situation
Ageing population is currently a serious problem in Singapore due to the low birth
rate therefore there is a potential in further expansion in business.
Presently, Econ Healthcare Limited is focusing on their regional development.
The founder of Econ Healthcare Limited, Mr. Ong Chu Poh has said that he sees
a potential in the China market for his healthcare business. As China adopts a
one child policy in China for the past decades, Mr. Ong feels that China is a
feasible market. He planned to enter the china market by cooperating with the
developer to develop a “retired village”.
Reference: Econ Healthcare Limited Annual Publication
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List of other healthcare companies and background:
Thomson Medical Centre
Thomson Medical Centre celebrates life and 15 years of excellent patient
services.
Founded as mother and child specialty hospital in 1979, we bring to West Point
Family Hospital our reputation of personalized care to the community.
Reference: http://www.wpfh.com/
Parkway Group Healthcare
Parkway Group Healthcare (PGH) is the largest healthcare group in Asia. It owns
three private hospitals in Singapore, East Shore, Gleneagles, and Mount
Elizabeth Hospitals. Parkway also has a network of regional hospitals in Malaysia,
India and Brunei.
Our focus is on being consistently innovative so as to provide the cutting-edge in
healthcare services to our patients and to build on the strong reputation that we
have acquired both in Singapore and overseas. Our hospitals and services have
become a hallmark of quality.
Personalized quality service and state-of-the-art facilities are features that our
patients talk about long after their experience of getting treatment at our hospitals.
These are backed by a team of experienced and competent specialists, doctors,
clinicians, nurses and technical staff - the people factor which is all-important for
successful treatment of patients.
References: http://www.pgh.com.sg/aboutus.jsp
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Pacific Healthcare Holdings
Pacific Healthcare Holdings is an integrated healthcare service provider offering
a wide spectrum of services through their medical centers in Singapore. They
provide specialist medical care, cosmetic medical services, dental procedures,
health screenings, diagnostic services, psychotherapy & counseling, pediatric
neonatal care and nursing care for the elderly.
Pacific Healthcare comprises of dedicated healthcare professionals who share a
common goal of building a healthcare institution synonymous with medical
excellence, compassion and quality care.
References: http://app.singaporemedicine.com/asp/hea/hea020205.asp
Strengths and challenges arising due to the economy
On the long run, Econ Healthcare will not be badly affected by the economic
downturn as it is stable and has the support of the government and plans of
going regional can only boast and increase their strength.
At the same time, many healthcare organizations have to rely on the government
financial support in order to survive however Econ Healthcare Limited is able to
provide good quality brand and good quality services.
Strengths and challenges arising due to other factors such as location of
Singapore
Econ healthcare limited owned five assets and the other 2 are rent from the
government. Therefore, they do not have to worry about the increase in rental
and thus Econ Healthcare Limited is more reliable than the other healthcare
companies. Meanwhile, with the support from the government, one can be
assured that in times of crisis, Econ Healthcare Limited will not be running away
or even facing the prospect of closing down.
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Factors caused by industries within Singapore
In order to remain competitive and take advantage of the growing need for
nursing care for the ageing population in Singapore, the Group plans to carry out
the following:
1. Establish More Medicare Centers and Nursing:
Homes
- started construction for new medicare centre in Braddell Road
- obtained government approval for upgrading of Choa Chu Kang Home
into a medicare centre
2. Increase Range of Services
- Provide programmes based on National Skill Recognition System
competencies to train nursing staff from Singapore and the PRC at our
medicare centre
Factors caused by competing industries in overseas:
Expansion Overseas
The Group conducted market surveys in the PRC, Malaysia and Australia and
has set up a representative office in the PRC. It has been set up for discussions
for collaborations with PRC parties mainly in the areas of management,
consultancy and training services for the nursing industry in PRC. Thus, it will
increase the trading of healthcare equipment and accessories to improve the
services provided. Another reason for expansion is to source out for distributors
for in-house designed beds and healthcare accessories overseas which are
cheap to lower costs for patients and can fit straight into the needs of all patients.
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Malaysia
The centre recently made available its services to the Malaysian public through
the maiden establishment of the ECON Medicare Centre that is based at the
Kuala Lumpur Chinese Maternity Hospital. The centre is the result of a
partnership between Ong and NV Multi Corporation Berhad group managing
director Datuk David Kong.
Ong said the idea to set up a branch in Malaysia was initiated by Kong during
one of his visits to the facility in Singapore.
Occupying 60,606 sq meters of the sixth and seventh floors of the hospital,
ECON Medicare was set up at an initial investment RM2mil.
The centre specializes in short- and long-term rehabilitation and post-hospital
treatment, particularly for senior citizens.
However, its services are also extended to those from the younger age group.
According to Ong, ECON Medicare prides itself on its quality treatment,
personalized services and high standard of professionalism and that treatment at
the centre comes with a premium yet justifiable price.
Basic fees range from RM1,500 per month, depending on ward type, patient
category and services. Wards range from single-bed or shared rooms, to
common wards and the layout is based on the requirements of the Singapore
Health Ministry. Patients are grouped under four categories, ranging from the
independent and mobile, to the bed-ridden. The centre accommodates only 100
residents to ensure maximum attention and care is given to each patient.
Residents are given 24-hour care, combining traditional Chinese and modern
treatment. In addition, residents may get their doctors to treat them at the
center’s premises. “This is where we have the “East meets West” style of
treatment besides personalized services to cater to the needs of each resident. It
is like a home away from home,” said Ong, adding that ECON Medicare currently
has 30 residents, a general practitioner and six nurses.
Day-care is also provided at RM50 to RM100 per day, depending on the services,
while food is specially planned by a dietician to cater to each resident’s dietary
needs.
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Other services include home care, physiotherapy, occupational therapy, caregiving training and 24-hour ambulance services.
It has been slightly over six months since the centre opened in Malaysia, but the
response has been encouraging.
“We plan to open more centers in the major cities of Malaysia within the next two
years,” said Ong.
Present situation of Singapore Healthcare industry
Aging population getting serious in Singapore due to the low birth rate
therefore there is a potential in further expansion in the business.
The proportion of Singaporeans aged 65 years and above is expected to
increase at a per annum rate of 3.1%, from 7% in 1998 to 19% in 2030
Elderly population projected increase is estimated as of 220,000 as at January
2000 to 312,000 by year 2010.
Demand for Nursing Home Beds set to increase
The increasing number of elderly Singaporeans will require long term care and
support and thus leading to the need of getting more equipment such as beds for
them. It has been made known that MOH will increase the number of private
nursing home beds from the current 25% to 40% by year 2010.
Potential in Region
In Asia, the number of people over 60 years old is expected to increase
significantly from 2001 to 2011, especially in countries such as the PRC,
Malaysia and Australia. Rapid ageing population will only increase the demand
for healthcare services.
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Comparisons between Singapore's healthcare industry with
other foreign healthcare industry
Established Track Record and Brand Name
Econ Healthcare has been around in the business for about 15 years in the
business. They are the first to be invited to operate and manage an extension
ward in a hospital, namely, Tan Tock Seng Hospital. To the best of our
knowledge, they are the first in the industry to be awarded the ISO 9002
certification in 1996.
Wide Range of In-House Healthcare Services
Econ Healthcare Limited started out with nursing services to daily in-house
treatments, and further expand their services to Western medical treatment
complemented by TCM treatments Experienced Management Team. The
founder has more than 15 years of hands on experience in running nursing
homes with support from management team with relevant experience in their
respective fields.
Effective Cost Management
Although it is a nursing home, it is able to enjoy economies of scale through
sharing of services. Another way to cut cost is to make purchases in bulks. This
will help save money as it is a normal practice by every company to cut cost. One
more method adopted to cut cost is to centralize all general operations.
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High Barriers to Entry
In this industry, healthcare services can be classified as oligopoly. The reasons
behind it are that, one must obtain license from the Ministry of Health in order to
start the business. Another reason is the high amount of capital needed. In order
to set up one center, one must spend a huge amount of money on equipments
and manpower to serve the elderly at the center. The rate of return will take quite
long because in this industry, making profits is not easy because the amount of
money paid by the patients, most are used to cover cost of equipment and to
maintain the monthly cost such as salaries, electricity bills, etc. Thus, monthly
profits will be low and may even be a loss. Thus, one would have to consider
seriously before entering. Yet another major obstacle is the significant investment
costs in land and building. One have to pump in huge amount of money on
buying land and buildings or to sign long term contracts in order to have a place
to start the business. If one is to rent, he/she must be able to find a good place
and tie it down to long term contract so that they do not need to find a new place
to start the business again.
Purpose-Built Medicare Centre
Some centers are specially designed with residents' needs in mind. This is
incorporated to help service them better. Comprehensive physiotherapy facility
supervised by full-time physiotherapists to help serve and look after them. Some
will have nurses taking special care of those who are of a more critical situation.
Reference:
http://ir.zaobao.com/econhealthcare/pages/econhc_ipo.pdf#search='econ%20he
althcare%20limited
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Conclusion
Econ Healthcare Limited is one good example of a successful entrepreneur story
in Singapore. Thus, by looking deeper into how the company had managed to
come this far would enable us to have a better understanding of how
entrepreneurship plays an important role in their early years of operations. This
would also be a great learning experience for us, meaning that acquiring the
required knowledge would prepares us better when we enter into the realistic
world in the future. Also, we need to understand the risks and advantages to
venture beyond individual’s comfort zones accept risks and carve niches for
ourselves as an entrepreneur.
We also learn that doing well in Singapore itself is not enough as currently the
outside world is going into a global market where borders are not important as
transportation system around the world is becoming very convenient and anyone
can get from Singapore to anywhere of the earth in just a matter of hours. This
enable companies to earn more money and expand out and in this case Econ
Healthcare Limited has been doing well by expanding to China, Malaysia and
Australia.
In addition, Econ Health Care is one of the prime providers of medical services
and equipments. Thus, the need to investigate and look into the medical services
in Singapore would enlighten us a lot. It pulls our attention to the healthcare
services in Singapore and how healthcare services can benefit the whole
community. Previously, we had never put much effort into obtaining further
knowledge and information about the medical services in Singapore. Thus, this
would be another great learning point for the team.
15