Last week, I was using $FoundationHealth(FHH.SI) (FHH) as an example during my SIAS Healthcare Stocks webinar.
Yesterday, I had the opportunity to visit FHH's office at Novena.
And it gave me a different perspective on some parts of the business.
Two things stood out.
First, 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐞𝐝 𝐒𝐡𝐢𝐞𝐥𝐝 𝐏𝐥𝐚𝐧𝐬.
We normally look at the recent IP changes from the patient's angle. Higher out-of-pocket costs, more co-payment, patients becoming more conscious about healthcare bills.
But from FHH's angle, there is another side to it.
Take day surgery as an example. Certain procedures that would traditionally be done in a private hospital can potentially be done at FHH's ambulatory centres instead.
For suitable procedures, this can mean a more cost-efficient setting compared with a private hospital. For FHH, it also means keeping more of the patient's healthcare journey within its ecosystem.
So while the IP changes may put some pressure on private healthcare, operators that can provide care more efficiently could also find opportunities.
The second thing was 𝐅𝐇𝐇'𝐬 𝐀𝐕𝐀 𝐏𝐥𝐚𝐭𝐟𝐨𝐫𝐦.
This one I can relate to personally.
When we see a specialist, many of us have the same questions.
Is this doctor on my insurance panel? How much can I claim? Do I need pre-authorisation? How much do I pay myself?
Sometimes you end up calling the clinic, then the insurer, then checking your policy. 😅
The AVA platform is trying to solve this pain point by connecting patients, doctors, hospitals and insurers, covering things like referrals, appointments, pre-authorisation and claims.
I don't see AVA as something that will transform FHH's earnings tomorrow.
CEO Liaw Yit Ming shared an interesting longer-term perspective. Over the next 3 to 5 years, if AVA gains adoption beyond FHH's own ecosystem, this could become another growth driver to watch.
When I covered FHH in my webinar, I described the model as:
Specialists → Medical Centres → Technology
After the visit, I can see better how the pieces connect.
Of course, a good business model doesn't automatically mean a good investment. I still want to watch margins, specialist productivity, medical-centre utilisation and whether AVA can gain meaningful adoption.
Thanks to SGX, Amanda Huang and Shimona Wong for organising the visit, and to the FHH team for sharing so openly with us. Always useful when management is willing to go beyond the presentation slides.
Numbers tell us what happened.
Seeing the business helps us understand why.
And understanding the “why” is often where investing really starts.
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