Melco to Open Private Hospital at Studio City as Part of Macau’s Non-Gaming Pledge

Macau’s Studio City will get a private hospital focused on imaging and diagnostics, starting October 1, 2025, under a new agreement between Melco’s subsidiary Studio City Retail Services Ltd (SCRS) and iRad. The facility will be inside Studio City’s integrated resort (Cotai), covering about 12,618 square feet (1,172 sqm), and will offer services like MRI, CT scans, 2D/3D mammography, ultrasound and X-ray diagnostics. The contract is initially for just over nine years (from a “Trading Start Date” tentatively October 1, 2025, until 30 November 2034), with options to renew for two further periods of five years each. 

This private hospital is not just a standalone medical project, but part of the non-gaming investment commitments Melco made under Macau’s 10-year gaming concession framework that started 1 January 2023. Under that regime, all of Macau’s six casino concessionaires committed to invest a total of MOP 108.8 billion (around US$13.6 billion) into non-gaming elements of their operations, covering things like healthcare, culture, tourism, entertainment, etc. In Melco’s case, the hospital helps fulfill its obligation to support Macau’s health care sector and diversify its offerings beyond gaming. 

Financially, the deal specifies fees and responsibilities. iRad will pay SCRS a base fee starting at MOP 694,981 per month in the first three years (which includes rent and equipment-use fees), rising in specific years, and in some years a component for utilisation of equipment. SCRS will also purchase and install the medical equipment, and iRad gets an option to buy this equipment at a nominal price at the end of the initial term, if iRad has fulfilled its obligations under the agreement. 

Melco and iRad will also offer discounted diagnostic medical body check-up packages to employees and guests not just at Studio City, but also at Melco’s other Macau properties (Altira Hotel, City of Dreams). These may be offered for sale or as complimentary benefits. This shows the plan is meant to integrate broadly across Melco’s portfolio rather than being limited to Studio City alone. In addition, during the initial fitting out and licensing stages, SCRS and iRad will work together to secure necessary permits and prepare the premises. 

From the regulatory and corporate governance side, this is treated as a “continuing connected transaction” under Hong Kong’s listing rules because iRad is indirectly associated with Mr. Ho, Lawrence Yau Lung (Melco’s chair/CEO). Because the duration exceeds three years, Melco engaged an Independent Financial Adviser to confirm that the longer-term agreement is commercially justified, especially given the capital and equipment outlays typical for medical facilities. 

Looking ahead, this hospital facility could make Studio City more attractive not only to tourists but also to residents who value healthcare access, potentially helping Macao push further toward becoming a destination not just for entertainment and gambling, but also medical tourism and healthcare services. It also reflects broader trends in Macau’s plans to reduce overspecialization around gaming revenue and ensure more resilience. However, execution risks remain—staffing qualified medical specialists, maintaining regulatory compliance, managing capital and operational costs, and ensuring sufficient utilization will be key. If successful, the model could be replicated by other concessionaires under Macau’s non-gaming investment mandates.