HEALTHCARE

Bangkok Chain Hospital (BCH), the SET-listed hospital chain management under the Kasemrad brand, expects revenue to rise by 20% next year from 4.4 billion baht estimated this year on aggressive expansion, said chairman Chalerm Harnpanich.

Mr Chalerm said its six hospitals were performing well with 10% revenue growth this year, and were expected to continue growing next year.

In January, the company will start operating its new facility, World Medical Center, and it expects revenue of 600-700 million baht in 2013.

The opening is projected to improve net profit as well next year.

"The company anticipates sales of 4.4 billion baht this year. We are confident our target is reasonable because for the first nine months we gained consolidated revenue of 3.3 billion baht and a net profit of 682 million baht, exceeding full-year profit of 672 million last year," said Mr Chalerm.

He added that in the first nine months clients paying by cash at its hospitals rose from 60% last year to 68% this year.

This is mainly because the group cancelled its 30 baht universal healthcare service and increased the budget for service through the Social Security Fund.

Mr Chalerm said members in the Social Security Fund rose to 600,000 from 540,000, which supported revenue growth.

The company plans to invest 110 million baht for a new hospital in Chiang Rai, scheduled to open in June, and 600 million baht for a special medical centre slated for the fourth quarter in either Chiang San or Chiang Khong districts of Chiang Rai.

"These two locations will benefit from Asean border trade when the Asean Economic Community starts in 2015, as they are major ports for goods transported from the North," said Mr Chalerm.

In 2014, the group plans to invest 1 billion baht for a new hospital in Bangkok's Ramkhamhaeng area with a total capacity of 250-300 beds, while it downsizes an investment project in Pattaya from 400 to 250 beds, requiring lower capital of around 1.5 billion baht.

"Most of our investments will be financed by our operating cash," said Mr Chalerm.

Recently Bumrungrad Hospital (BH) sold all of its shareholding in BCH, some 25%, to several mutual funds. Mr Chalerm said the move helped the company by increasing liquidity in shares trading with several funds holding a stake instead of one investor.

The SET-listed hospital chain has a market capitalisation of 19 billion baht.

Shares of BCH closed unchanged on the SET yesterday at 9.40 baht in trade worth 36.53 million baht.