Healthway Medical Corp, the operator of private medical centres and clinics, says net profit attributable to shareholders fell 63.9% to $1.4 million the quarter ended 31 March 2010 (1QFY2010) from $3.8 million in 1QFY2009. Revenue fell 6.3% to $22.2 million from $23.7 million.

But total operating costs for the group, which include medical supplies, consumables and lab expenses, staff costs, depreciation of property, plant and equipment, amortisation of intangible assets and other operating expenses, grew to $21.3 million for 1Q10, an increase of 8.1% from 1Q09.

The pre-operating expenses, new doctors hires and start-up expenses in our new centres added to this higher expenses. This higher cost is in line with the group’s expansion of business.