Surge in complex surgeries at major hospitals drives demand for surgical supplies

Net profit jumps 54% as company achieves growth and profitability simultaneously

Gimpo logistics center and automated ordering system strengthen supply chain

The corporate identity logo of CareKamp, a group purchasing organization subsidiary of Zio Health Group. [CareKamp]
The corporate identity logo of CareKamp, a group purchasing organization subsidiary of Zio Health Group. [CareKamp]

CareKamp, the hospital group purchasing organization subsidiary of Zio Health Group, posted record earnings in the first half of this year.

CareKamp said Tuesday it recorded consolidated sales of 729.2 billion won ($543 million) and operating profit of 12.8 billion won in the first half of this year, marking the best half-year performance in the company's history. Sales rose 15.9 percent and operating profit climbed 29.1 percent compared with the same period last year. Net profit for the period surged 53.8 percent to 8.4 billion won, reflecting gains in both scale and profitability. CareKamp became the first company in the domestic GPO industry to surpass 1 trillion won in annual sales last year, reaching 1.32 trillion won.

The strong results were driven by a sharp increase in complex surgeries at large tertiary hospitals, which fueled demand for clinical supplies and surgery-related medical devices. The business development division also supported growth by maintaining and expanding supply contracts with existing clients.

A GPO handles the full procurement cycle for hospitals — sourcing, storage and inventory management across a vast range of clinical materials, medical equipment and diagnostic reagents — allowing hospitals to maximize procurement efficiency without negotiating individually with each supplier. CareKamp currently handles about 80,000 product types and provides customized purchasing services to more than 30 major hospitals nationwide, including Samsung Medical Center, Kyung Hee University Medical Center, Konkuk University Medical Center, Inha University Hospital and Yeungnam University Medical Center.

To supply temperature- and humidity-sensitive reagents and sterilized materials, the company operates a dedicated logistics center in Gimpo, Gyeonggi Province. It has also built a proprietary integrated logistics management system called POCS, which links hospitals and suppliers to automatically place replenishment orders when in-hospital stock runs low and prioritizes products nearing their expiration dates, significantly reducing inventory waste.

As major hospitals sharpen their focus on essential and critical-care medicine, CareKamp has reliably absorbed demand for specialized medical supply chains requiring strict hygiene standards and on-time delivery, demonstrating a firm economy of scale in the medical logistics sector.

Zio Health Group Chairwoman Cho Seon-hye said the results reflect CareKamp's efforts to develop hospital purchasing and logistics into a specialized, high-value-added industry. "We will raise the standard of Korea's medical logistics system to a new level and create an environment where medical professionals can focus on what they do best — caring for patients," she said.


silverpaper@heraldcorp.com