Hong Kong’s medical diagnostic group iRad is to launch in October a medical centre at the Studio City casino resort. The information was disclosed in a Tuesday filing from Hong Kong-listed Melco International Development Ltd, the parent of casino operator Melco Resorts & Entertainment Ltd.
Melco Resorts is the majority owner of the Studio City complex (pictured) in Macau’s Cotai district.
Melco Resorts mentioned previously a plan to launch an “iRad Polyclinic” at Studio City, offering medical diagnostic services including magnetic resonance imaging (MRI), computer tomography scan (CT scan) services, and 2D and 3D mammography, as well as ultrasound and X-ray services.
The proposal had been outlined by Melco Resorts as part of the group’s investment pledge under its new 10-year concession terms, which started on January 1, 2023.
In Tuesday’s filing, Melco International said its subsidiary Studio City Retail Services Ltd (SCRS) had signed an agreement with iRad, effective from January 1 this year, giving the latter the “right to operate a private hospital focused on imaging and diagnostic medical services at the Studio City integrated resort”.
The clinic is “tentatively expected” to open on October 1, 2025, with the contract ending on November 30, 2034, said the announcement. There is an option for the contract to be renewed “for two further periods of five years each by mutual agreement of the parties,” it added.
GGRAsia reported in July that iRad was recruiting medical staff for the private hospital to open at Studio City. The healthcare group was seeking professionals in aesthetic medicine, general medicine, and radiography services, as well as looking to fill several operations-related posts for the medical centre.
As per Tuesday’s filing, the medical centre will feature a total area of 12,618 square feet (1,172 sq. metres) at the Studio City. SCRS will purchase and install the medical equipment for the operation of iRad at Studio City.
Supporting the healthcare sector
The announcement stated SCRS was committed to supporting the healthcare industry of Macau during the term of Melco Resorts’ gaming concession by providing iRad with monthly payments, including MOP2.08 million (US$259,610) per month for the first three months of operations, following by MOP1.25 million per month during the fourth to the 34th months of operations.
Melco International said: “The company understands that this support will be used by iRad to cover capital expenditures, such as pre-opening costs and IT and office equipment, as well as essential day-to-day operational expenses, including the recruitment and employment of skilled healthcare professionals.”
It added: “The industry support is expected to be allocated approximately 8 percent towards capital expenditures, and 92 percent towards operational expenses, primarily labour costs for engaging experienced radiologists and medical staff, reflecting the need to bring experienced medical professionals into Macau’s relatively new healthcare market.”
On its side, the medical group will have to pay either a base fee starting at MOP694,981 per month, as rent and for the use of the equipment, or a turnover fee of 1.5 percent of monthly turnover if higher than the base fee.
“iRad shall only be required to pay the higher of the base fee or the turnover fee, but not both,” stated the filing. The base fee will be adjusted throughout the contract period.
After a ramp-up period, from the fourth year after the date on which iRad starts operating at Studio City, a management fee shall be payable by iRad in an amount of MOP61,450 per month.
Black Spade Capital Ltd – the family office of Melco Resorts’ chairman and chief executive Lawrence Ho Yau Lung – had announced in March 2021 its acquisition of an entity called iRad Medical Holding Ltd, described as “a Hong Kong-based diagnostic imaging practice”.
The deal resulted in Black Spade Capital becoming the majority shareholder of the iRad group, but with its founding team still running it.
According to Melco International, iRad is indirectly held as to approximately 40.63 percent by Zedra Asia Ltd, which is the trustee of the family trust under which the beneficiaries include Mr Ho and his family members.
A number of other Macau casino concessionaires have flagged plans to open medical venues, amid the local sector’s pledge to help Macau in its economic diversification efforts, and the city’s wish to develop medical tourism.
