Clinic under probe not material to group: Alliance Healthcare

Alliance Healthcare said yesterday that a clinic under investigation by the Manpower Ministry regarding a locum doctor is "not material" to the group and that it continues to operate as usual.

It noted that it operates 15 other general practitioner clinics and is also engaged in three additional business segments - managed healthcare solutions, specialist care and pharmaceutical services.

Alliance Healthcare was responding to Singapore Exchange queries on how material My Family Clinic Hougang Central (MFG Hougang) is to the group and the percentage of employees who require work passes.

The group added that it does not expect operations at MFG Hougang to be interrupted by the investigation.

It noted that the clinic contributes 5 per cent to group revenue if inter-company transactions, allocation of holding company costs and other expenses are excluded.

Alliance also said that 6.9 per cent of the Hougang clinic's full-time staff require work passes, but none are needed for its contract employees.

Alliance Healthcare clarified that locum or stand-in doctors are independent contractors and not employees. It added that it does not have any locum doctors on work passes.

The group disclosed on Nov 7 that it has been asked to assist in investigations under the Employment of Foreign Manpower Act concerning the locum doctor who "may have contravened" work pass conditions.

The doctor had worked "from time to time" at a number of the group's clinics, but ceased providing services from April this year.

Alliance Healthcare added that My Family Clinic (Hougang Central) has been suspended from applying for new work passes until further notice.

But it may renew existing passes.

Other clinics where the locum doctor worked have been asked to provide certain information to the Ministry of Manpower.

Alliance noted that its operations are not dependent on staff who require work passes, adding that its preliminary assessment suggests that the incident will not have a material impact on its financial results for the year ending June 30, 2020.

A version of this article appeared in the print edition of The Straits Times on November 12, 2019, with the headline 'Clinic under probe not material to group: Alliance Healthcare'. Print Edition | Subscribe