SET-listed Bangkok Dusit Medical Services Plc (BGH), Thailand's largest hospital group, expects its revenue to grow 11% next year, on par with this year, and will increase its focus on non-core business.
"Revenue growth next year will include revenues from newly acquired hospitals," said Dr Chatree Duangnet, chief operating officer for medical affairs.
BGH expects revenue growth of 11% this year from 52 billion baht last year. Similar to this year, it will allocate 5% of expected revenue for investment and 5% for acquisitions next year.
"The situation has improved over the past few months. We can control costs, so we will continue to focus on that," Dr Chatree said.
BGH's non-core business, such as the Save Drug Center, has higher margins but its revenue contribution remains low compared with its core hospital business.
Crucial to the expansion is the signing of a five-year memorandum of understanding with Oregon Health & Science University to develop a centre of excellence focusing on occupational health.
Along with Mahidol University, the group will develop comprehensive education, research and health promotion plans that will improve health care in Thailand.
Dr Chatree said the agreement will help BGH expand into health insurance.
"We will test the programme internally next year until we are confident in the format, whether through partnerships or otherwise, before offering it to the public," he said.
BGH will leverage its network of hospitals, group insurance, informatics exchange and an occupational health centre to target Thailand's top 20 listed companies for healthcare coverage.
It will also continue to focus on international patients.
BGH shares closed yesterday on the SET at 18.20 baht, unchanged, in trade worth 417 million baht.