Hermina

The Challenge

Despite Indonesia’s economic growth in recent years, the country still faces pressing healthcare infrastructure challenges. Indonesia has fewer than 1.5 hospital beds per 1,000 people, trailing behind other countries in the region that typically have three or more beds per 1,000.[1] This disparity highlights the urgent need for infrastructure development to meet growing healthcare demands.

Another critical concern is the scarcity of medical professionals, particularly specialists. Experts suggest that Indonesia would need to increase the number of doctors nationwide from 200,000 to 270,000 to ensure an appropriate physician to patient ratio.[2] The availability of specialists lags even further behind general practitioners, compounding healthcare access issues across the country.

Moreover, access to healthcare remains heavily skewed towards urban centers like Jakarta and the island of Java. Tier I cities, notably the Greater Jakarta area, enjoy a disproportionately higher concentration of hospital beds and medical professionals compared to national averages.[3] In contrast, Tier 2 and Tier 3 cities, as well as rural areas beyond Java, struggle with limited healthcare resources despite substantial needs.

While efforts to address these disparities are underway, significant challenges in infrastructure, medical workforce availability, and geographic access persist. Addressing these issues effectively is essential for achieving equitable healthcare provision across the nation and improving health outcomes.

Hermina’s Solution

Hermina is one of Indonesia’s foremost private hospital groups, boasting a legacy of nearly 40 years of providing patients with quality care. With a network of hospitals across the country, Hermina leverages its unique ‘doctor partnership’ model to attract and retain top specialist doctors, ensuring high standards of care across its facilities.

Against the backdrop of Indonesia’s swelling middle class, Hermina is uniquely placed to help tackle many of the country’s healthcare challenges, including lack of specialists, infrastructure, and affordable treatment.

In particular, Hermina accepts patients covered under the country’s recently launched national health insurance scheme, the JKN (Jaminan Kesehatan Nasional) which, similar to the NHS in the UK, allows Indonesians to obtain healthcare treatment regardless of income level. And because Hermina is present across the archipelago, the company is able to support the objective of affordable care, even in more remote regions. JKN patients form the cornerstone of Hermina’s patient base, which have allowed the company to scale its operations and supply even more hospital beds.

As JKN is often the first touchpoint for patients, Hermina can build on these early relationships to demonstrate the quality of its treatments and provide healthcare options for years to come, even as some patients transition to private payment models. Hermina caters not only to the current generation but also future generations, leveraging its expertise in women and children’s care to provide accessible, high-quality healthcare

Quadria’s Impact 

Since Quadria’s investment in 2020, the company has gone from strength to strength, expanding the number of hospitals in its network from 40 to 47 and increasing the number of hospitals beds from 4,900 to 7,400. Today, Hermina has a presence in 32 cities across 16 of Indonesia’s 38 provinces.

In 2023, the most recent year of reporting, Hermina received over 8.6 million patient visits, more than 70% of which were national health insurance patients under the government’s universal healthcare program JKN.[4]

All the while, Hermina has continued to deliver strong financial results. In 2023, Hermina recorded a 18% YoY increase in revenue, a 41% increase in EBITDA, and a 20% YoY increase in patient volume.[5]

These results are evidence that large-scale healthcare business models built on providing affordable access to quality healthcare can be financially sustainable and mutually reinforcing as profits are reinvested to build capacity.

Ultimately, Quadria’s investment in Hermina has helped the company to accelerate access to healthcare for Indonesia’s growing middle class and contribute to the Indonesian government’s aim of universal healthcare for all.