Khalid Al-Saleem, Managing Director of Mouwasat Medical Services Co.
Khalid Al-Saleem, Managing Director of Mouwasat Medical Services Co., said the 5.8% decline in the company’s Q3 2026 net profit was mainly attributable to the collection of part of doubtful receivables in the comparative quarter of 2025, which had positively impacted earnings during the period.
In an interview with Argaam, Al-Saleem said that, excluding the impact of this collection, the company’s net profit would have recorded growth of 4.3% in Q3 2026.
He added that the company’s net profit increased by 2.86% in the first nine months of 2026 to SAR 600.4 million, despite pressure on profit margins associated with strategic expansion, particularly the commencement of operations at Yanbu Hospital. This reflects the resilience of the company’s operating model and its ability to absorb the costs associated with expansion and the initial operating phases of new projects.
Excluding the impact of the new Yanbu Hospital’s commencement of operations in Q1 2026, the company’s net profit growth would have reached 14% during the three-month period, reflecting the resilience of its operating model and its ability to absorb pressures associated with strategic expansion and the initial operation of new projects, according to Al-Saleem.
He also said that revenue increased by 10.2% in Q3 2026 to SAR 856.37 million, mainly supported by revenue generated by Yanbu Hospital, which began operations in Q1 2026, as well as higher inpatient occupancy rates.
These two factors jointly contributed to revenue growth, in line with the company’s strategy to diversify revenue sources and enhance utilization of its existing medical facilities, while expanding capacity through new projects, the Managing Director stated.
Regarding the company’s performance outlook for Q4 2026, Al-Saleem said the company is focused on continuing to implement its growth and expansion strategy, enhancing the efficiency of its operating model, and leveraging the operational capacity of its medical facilities to support revenue and profitability growth over the medium and long term.
He noted that Mouwasat looks forward to maintaining positive results in Q4, supporting its financial and strategic targets for 2026, while continuing to focus on sustainable growth and improving operational efficiency.
Regarding the quantitative contribution of each factor separately, or the revenue growth rate of existing hospitals excluding Yanbu Hospital, he said the financial announcement did not provide a breakdown of these indicators.
He added that the company continues to implement its operational plans to improve utilization of its hospitals’ capacity and enhance medical service delivery, supporting growth in inpatient and outpatient activities.
Al-Saleem explained that the company’s business model relies on diversified revenue sources, including insurance companies, government entities, direct contracts, and cash-paying patients. He said the company seeks to maintain this diversity to balance revenue sources, support sustainable growth, and limit dependence on any single source, in line with its long-term strategy and interests.
Mouwasat is closely monitoring regulatory developments and changes in Saudi Arabia’s healthcare sector, including the move toward implementing the Diagnosis-Related Groups (DRG) system, which represents an important shift in healthcare financing and pricing mechanisms, said Al-Saleem.
He explained that the system has not yet been effectively implemented under the company’s private insurance contracts, noting that it remains under internal study and evaluation from various operational, administrative, and financial perspectives.
Al-Saleem concluded that it is not possible at this stage to accurately determine the expected impact of the system on medical service prices or profit margins until its final implementation mechanisms become clear and its regulatory and contractual requirements are completed.
Khalid Al-Saleem, Managing Director of Mouwasat Medical Services Co.
Khalid Al-Saleem, Managing Director of Mouwasat Medical Services Co., said the 5.8% decline in the company’s Q3 2026 net profit was mainly attributable to the collection of part of doubtful receivables in the comparative quarter of 2025, which had positively impacted earnings during the period.
In an interview with Argaam, Al-Saleem said that, excluding the impact of this collection, the company’s net profit would have recorded growth of 4.3% in Q3 2026.
He added that the company’s net profit increased by 2.86% in the first nine months of 2026 to SAR 600.4 million, despite pressure on profit margins associated with strategic expansion, particularly the commencement of operations at Yanbu Hospital. This reflects the resilience of the company’s operating model and its ability to absorb the costs associated with expansion and the initial operating phases of new projects.
Excluding the impact of the new Yanbu Hospital’s commencement of operations in Q1 2026, the company’s net profit growth would have reached 14% during the three-month period, reflecting the resilience of its operating model and its ability to absorb pressures associated with strategic expansion and the initial operation of new projects, according to Al-Saleem.
He also said that revenue increased by 10.2% in Q3 2026 to SAR 856.37 million, mainly supported by revenue generated by Yanbu Hospital, which began operations in Q1 2026, as well as higher inpatient occupancy rates.
These two factors jointly contributed to revenue growth, in line with the company’s strategy to diversify revenue sources and enhance utilization of its existing medical facilities, while expanding capacity through new projects, the Managing Director stated.
Regarding the company’s performance outlook for Q4 2026, Al-Saleem said the company is focused on continuing to implement its growth and expansion strategy, enhancing the efficiency of its operating model, and leveraging the operational capacity of its medical facilities to support revenue and profitability growth over the medium and long term.
He noted that Mouwasat looks forward to maintaining positive results in Q4, supporting its financial and strategic targets for 2026, while continuing to focus on sustainable growth and improving operational efficiency.
Regarding the quantitative contribution of each factor separately, or the revenue growth rate of existing hospitals excluding Yanbu Hospital, he said the financial announcement did not provide a breakdown of these indicators.
He added that the company continues to implement its operational plans to improve utilization of its hospitals’ capacity and enhance medical service delivery, supporting growth in inpatient and outpatient activities.
Al-Saleem explained that the company’s business model relies on diversified revenue sources, including insurance companies, government entities, direct contracts, and cash-paying patients. He said the company seeks to maintain this diversity to balance revenue sources, support sustainable growth, and limit dependence on any single source, in line with its long-term strategy and interests.
Mouwasat is closely monitoring regulatory developments and changes in Saudi Arabia’s healthcare sector, including the move toward implementing the Diagnosis-Related Groups (DRG) system, which represents an important shift in healthcare financing and pricing mechanisms, said Al-Saleem.
He explained that the system has not yet been effectively implemented under the company’s private insurance contracts, noting that it remains under internal study and evaluation from various operational, administrative, and financial perspectives.
Al-Saleem concluded that it is not possible at this stage to accurately determine the expected impact of the system on medical service prices or profit margins until its final implementation mechanisms become clear and its regulatory and contractual requirements are completed.
