Melco Resorts & Entertainment is set to construct a state-of-the-art healthcare center at its renowned Studio City resort in Macau, marking a significant step in the region’s strategic shift towards economic diversification beyond its traditional gambling industry. This ambitious project is in collaboration with iRad Imaging and Diagnostic Medical Center, with the facility expected to open its doors on October 1, 2025.
The new hospital will span 12,600 square feet, focusing on advanced diagnostic and imaging services. According to corporate documents, the center will be equipped with cutting-edge technology, including MRI and CT machines, mammography, ultrasound, and X-ray equipment. Studio City Retail Services Ltd, a subsidiary of Melco, is responsible for providing and installing the necessary equipment, while iRad will handle the daily operations.
This partnership is set to last until the end of 2034, with provisions to extend the agreement twice for an additional five years each. During this period, iRad will pay a monthly base rent starting at MOP 694,981 (approximately $86,700) or 1.5% of sales, whichever is higher. From the fourth year of operation, a management fee will also be applied. Upon the expiration of the contract, iRad will have the option to purchase the medical equipment for a nominal fee.
In line with Macau’s current gaming concession requirements, Melco International has committed to supporting the local healthcare sector. This initiative is part of a broader mandate for casino operators to invest significantly in non-gaming activities. To this end, Melco plans to provide initial financial backing to iRad to cover startup and operational expenses, which includes hiring qualified staff and upgrading technology. A substantial portion of this financial support will be allocated to attract and retain skilled doctors and nurses, underlining the city’s efforts to bolster its healthcare workforce.
Melco’s strategic move extends beyond mere compliance with concession requirements; it aims to enhance the health and well-being of its visitors and employees. The company has announced that personnel and guests at its Macau venues, including Studio City, City of Dreams, and Altira, will gain access to affordable health screening packages at the new center. This initiative aligns with Melco’s broader vision of fostering community health and positioning Macau as a premier medical tourism hub.
The development of the healthcare center is a direct outcome of the 10-year concession agreements established in 2022. These agreements saw Macau’s six casino operators commit to investing a total of MOP 108.8 billion ($13.6 billion) in non-gaming ventures. As other casino operators unveil similar healthcare initiatives, the new hospital at Studio City highlights a transformative shift in the region’s resort landscape.
The project also reflects the interconnected nature of Macau’s corporate landscape. The ownership structure of iRad reveals ties to Melco’s leadership, with a family trust benefiting Chairman Lawrence Ho and his relatives owning over 40% of iRad through trustee Zedra Asia Ltd. Black Spade Capital, an associated investment entity, has acquired a controlling stake in iRad while retaining its original management team. This strategic investment underscores the confidence in Macau’s burgeoning healthcare potential.
Despite the promising prospects, there are contrasting views on Macau’s pivot towards non-gaming sectors. Some analysts highlight the challenges in attracting sustained interest in medical tourism, considering Macau’s entrenched identity as a gambling haven. They argue that while healthcare initiatives are a positive step, they alone may not suffice to redefine Macau’s global image.
Conversely, proponents of the diversification strategy contend that investing in sectors like healthcare is crucial for Macau’s long-term economic sustainability. They emphasize that the integration of healthcare services with entertainment and leisure offerings can create a unique value proposition, making Macau a more versatile destination. This approach aims to mitigate the risks associated with reliance on a single industry and potentially cushion the region against economic fluctuations.
In conclusion, Melco’s initiative to build a healthcare center at Studio City is a testament to the evolving nature of Macau’s economic landscape. By venturing into healthcare, the company not only complies with regulatory expectations but also contributes to a broader vision of a diverse and resilient economy. As the region navigates this transition, the success of such initiatives will ultimately depend on how well they integrate with Macau’s existing offerings and the ability to attract a new demographic of visitors.
