SINGAPORE (Dec 5): UOB Kay Hian is reiterating its “buy” call on Raffles Medical Group with an increased target price of $1.30 from $1.27 previously.

This came on the back of the Ministry of Health (MOH) publishing its fee benchmark guidelines for surgical procedures to contain exorbitant fees in the private sector. The Fee Benchmark report noted that private inpatient bills grew at 9.0% per year (from 2007-2017) compared with 4.9% per year for Class A (public sector) inpatient bills.

This is part of MOH’s larger strategy to ensure the affordability of healthcare costs and the sustainability of the healthcare system. It also complements other measures, such as the introduction of a co-payment requirement for new Integrated Shield Plan riders, and moving upstream in health promotion and disease prevention.

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