Intermedical Care and Lab Hospital Plc (IMH) has bought privately-run Mahaesak Hospital in Bangkok's Silom area for 998 million baht to support its healthcare services for expatriates and other foreigners.
The company acquired a 90.7% share in Mahaesak Hospital and plans to upgrade its services to meet demand in the healthcare industry.
The move comes after China decided to reopen its borders from Jan 8, which would lead to a higher number of Chinese tourists visiting Thailand. Healthcare is among the businesses that can benefit from their arrival.
IMH expects Mahaesak Hospital to generate around 400 million baht in revenue for the company.
"Mahaesak Hospital has the potential to support our business expansion. It is located in Bangkok's prime area which is both a business and residential area for foreigners," said Sittiwat Kamkatwong, chief executive of IMH.
Mahaesak Hospital was established 40 years ago. It currently has 103 beds.
After the share purchase deal, IMH will increase the number of beds to 235.
Mr Sittiwat said the hospital will focus on foreign patients -- both tourists and expatriates -- but would continue to provide treatment to Thais.
At present, there are up to 50,000 patients who receive treatment under the social security programme.
He said IMH plans to restructure management and further develop Mahaesak Hospital in order to increase efficiency and reduce costs. This will enable Mahaesak Hospital to better compete with other healthcare service providers, said Mr Sittiwat.
Competition in the country's medical and wellness industry is strong, he said.
After acquiring Mahaesak Hospital, IMH will have a total of three hospitals under its wing. The other two are IMH Hospital and IMH Thonburi.
During the first nine months of 2022, IMH racked up 594 million baht in revenue, with a profit of 220 million baht.
In 2021, the company's total revenue stood at 953 million baht, with a profit of 532 million baht. It earned 243 million baht and recorded a loss of 15.8 million in 2020.