CARECAMP INC., 729.2 billion won in first-half revenue... GPO business continues to grow

[Financial News] CARECAMP INC., a subsidiary of GeoYoung Group specializing in Group Purchasing Organizations (GPOs), recorded its highest-ever performance in the first half of this year. This was driven by increased demand for surgery-related medical supplies as the number of major surgeries at tertiary hospitals increased.
CARECAMP INC. announced on the 8th that it recorded sales of 729.2 billion won and an operating profit of 12.8 billion won in the first half of this year. Compared with the same period last year, sales increased by 15.9% and operating profit by 29.1%. This was the company's best-ever first-half performance.
Net profit also improved. Net profit for the first half was 8.4 billion won, up 53.8% from the same period last year.
The expansion of major surgeries at tertiary hospitals drove the company's growth. Increased demand for surgical supplies and medical devices led to higher revenue. The business development (BD) division also continued to grow based on cooperation with existing clients.
CARECAMP INC. recorded annual sales of 1.3185 trillion won last year, becoming the first company in Korea's GPO industry to surpass 1 trillion won in annual sales. It continued its growth in the first half of this year, further expanding its business.
A Group Purchasing Organization (GPO) is a business that purchases medical supplies, equipment, and reagents used by hospitals on their behalf and handles their storage, inventory management, and delivery. From a hospital's perspective, a GPO enables the integrated management of medical-supply purchasing and logistics without the need to deal individually with multiple suppliers.
CARECAMP INC. currently handles approximately 80,000 types of items and provides services to more than 30 major hospitals nationwide, including Konkuk University Medical Center, Kyung Hee University Medical Center, Seoul, Yeungnam University Medical Center, and Inha University Hospital.
Unlike general logistics, medical logistics is characterized by strict management requirements for each item. This is because storage and transportation methods vary by product, from temperature-sensitive reagents and medical supplies that must remain sterile to large medical equipment.
CARECAMP INC. manages hospital supply chains by operating a logistics center dedicated to medical supplies in Gimpo, Gyeonggi Province. It also operates POCS, an integrated logistics management system that connects the purchasing and logistics systems of hospitals and suppliers.
Using POCS enables automatic ordering when hospital inventory falls below a certain level and allows hospitals to prioritize the use of products nearing their expiration dates. This is expected to reduce hospitals' inventory burden and the volume of discarded products.
"These results are the outcome of CARECAMP INC. developing hospital purchasing and logistics into specialized areas," said Cho Sun-hye, chairwoman of GeoYoung Group. "We will raise the standard of medical logistics in Korea and create an environment in which hospitals can focus on patient care."

[email protected] Jeong Sang-hee Reporter