The second largest hospital operator in Thailand, Bumrungrad Hospital Pcl, is currently seeking international opportunities, with a view to expand in China, Myanmar and Vietnam. The news breaks following the domestic political crisis in Thailand, which has prompted the operator to cut its revenue target this year.
CEO Dennis Brown told major media that following months of political unrest the hospital operator cut the 2014 revenue growth target to between 7 and 10% from 10 to 15%.
The issues surrounding the political stability of Thailand were further represented by the hospitals international patient figures. In the 1st half of 2014 foreign patients, who account for approx. 60% of revenue, fell 12% for outpatients and 8% for inpatients.
"We anticipate between 7 to 10 % growth this year. Normally, we expect 10 to 15 %," Brown confirmed.
- Bumrungrad began international expansion in 1997, following Asia's financial crisis;
- In March 2014 Bumrungrad acquired a 41% stake in a Mongolian hospital;
- Has cash of about 6 Billion Baht;
- Has set a budget of about 600 Million Baht a year to spend on equipment replacement and new machines.
China Healthcare Market Opens Up
With recent news from Beijing confirming that international investors may now wholly own a 100% of hospitals and elderly care homes in China, without a joint venture, Brown is excited at the opportunity to invest in China.
Over the years, Beijing has slowly opened the doors to overseas investment, allowing foreign investors to own 70% in past hospital joint ventures.