Bupa eyes Hong Kong's ageing population with purchase of Fortis unit Quality

Health-care provider Bupa's purchase of Hong Kong's largest private health-care chain, Quality HealthCare Medical Services, paves the way for the British firm to profit from rising demand for clinical services as the city's population rapidly ages.

The US$355 million deal, announced yesterday, is being financed by Bupa's internal cash flow and the two companies will operate independently once the acquisition is completed this month.

Bupa Asia managing director Ann Coughlan said yesterday the company expected increased demand for medical services in Hong Kong.

Coughlan, who has more than 20 years' experience in the global health care and medical insurance industry, added that the acquisition of Quality HealthCare would help Bupa gain access to operating assets, with the health-care chain offering a wide range of services to the general public, including general diagnostics and imaging services as well as specialist treatments.

The deal will result in a profit of about HK$1.25 billion for Indian hospital operator Fortis Healthcare. The Bombay-listed company acquired Quality HealthCare for HK$1.5 billion in 2010.

Secretary for Food and Health Ko Wing-man said earlier this year that the proportion of elderly people in the Hong Kong population would rise to one in four by 2030, up from about one in eight now.