Bangkok Hospital operator to expand capacity
text size

Bangkok Hospital operator to expand capacity

Country’s biggest hospital chain expects foreign demand to drive 10% annual growth

The Bangkok Hospital operator BDMS Plc is developing a second wellness centre in the capital to follow up on the success of its Movenpick BDMS Wellness Resort Bangkok. (Photo: BDMS)
The Bangkok Hospital operator BDMS Plc is developing a second wellness centre in the capital to follow up on the success of its Movenpick BDMS Wellness Resort Bangkok. (Photo: BDMS)

Thailand’s biggest private hospital operator expects annual revenue to grow more than 10% through 2027 as it adds new beds to meet a jump in demand from international patients.

Bangkok Dusit Medical Services Plc (BDMS) plans to add around 600 new beds at its hospitals to raise the total to 9,300 by end of 2027, chief executive officer Poramaporn Prasarttong-Osoth said.

SET-listed BDMS operates 59 hospitals in Thailand and Cambodia under the Bangkok Hospital, Samitivej Hospital and Phyathai Hospital brands. Its largest sources of foreign patients are Cambodia, China, the US, Japan and the UK, according to company data.

Ms Poramaporn said the company would focus on upgrading facilities such as cancer centres at its existing hospitals, rather than building new ones, to meet surging demand for treating non-communicable diseases.

“There is a lot of growth potential for overseas markets with lower costs of living and medical treatments in Thailand,” she said in an emailed response to Bloomberg questions.

“Our hospitals in key travel destinations such as Phuket and Pattaya have received very strong demand from international tourists.”

Prime Minister Srettha Thavisin has set a goal to position Thailand as the region’s tourism, wellness and medical hub. The government plans to approach foreign governments and health insurers to send more patients for medical treatment to Thailand.

The effort is part of a 10-year medical-centre plan, which will soon be submitted for cabinet approval, Public Health Minister Somsak Thepsutin said last week.

The government this month also allowed visa-free entry for people from 93 countries and territories, an increase from 57 previously, with visitors allowed to stay for up to 60 days.

The jump in international visitors has already benefited BDMS, contributing to a 17% increase in its first-quarter net profit to 4.07 billion baht. Revenue from international patients rose to 30% of total hospital income in the period, up from 27% for all of 2023, according to company data.

BDMS is betting the wellness business trend will continue by building a new facility in central Bangkok to meet rising demand from international visitors, said Ms Poramaporn.

The BDMS Silver Wellness & Residence project, which will include a wellness centre, retail space, hotel and residences, will be located on a prime site leased from the Crown Property Bureau at the corner of Sarasin and Lang Suan roads in Bangkok. It is set to be a key earnings-growth driver when it is completed in around five years, she said.

BDMS announced the plan in 2022 to invest around 24 billion baht in the new wellness centre. The company’s existing Movenpick BDMS Wellness Resort Bangkok has demonstrated growth with positive cash flows after the pandemic heightened awareness of health issues and increased demand for preventive treatments, according to Ms Poramaporn.

Do you like the content of this article?
COMMENT (5)