SINGAPORE (Dec 9): ISEC Healthcare, the provider of specialist ophthalmology services, is eyeing regional expansion and leveraging on its group practice model to grow organically, says Daiwa Capital Markets.

Listed in October 2014, ISEC Healthcare currently has two clinics in Malaysia and one in Singapore.

But as part of its strategy to deepen its presence across key areas in Malaysia, ISEC has established a clinic staffed with two doctors in Sibu, Sarawak, which is expected to start operations in 1Q16.

On Dec 8, it also completed the acquisition of Southern Specialist Eye Centre (SSEC), which operates a clinic in Malacca with three doctors.

Daiwa’s analyst Jame Osman recently met with CFO Macy Thong to better understand the company’s strategic direction going forward.

In a Dec 9 unrated report, Osman said management is looking for further expansion opportunities, including in areas such as Sabah, Kelantan and Johor.

In Singapore, the company decided to close its Novena clinic in Oct, as the ramp-up in patient volume was slower than expected. Instead, it plans to focus on driving organic growth from its existing clinic LHM Eye Centre (located in Gleneagles Hospital), operated by one of its founders.

ISEC operates under a group practice model, where its doctors are considered employees and remunerated mainly based on services rendered.

It also provides a share option scheme to align stakeholder interests.

With its two new clinics, ISEC will have a total of 21 doctors; 16 of these doctors collectively own around a 70% stake in the company.

“Looking ahead, management plans to leverage this group practice, which involves the transfer and harmonisation of best practices and sharing of technology such as  patient management systems and latest medical equipment, to drive business growth and attract more doctors onto its platform,” says Osman.

ISEC Healthcare is trading 4% lower at 24 cents.