THAILAND’S biggest private hospital operator will add more new beds than previously planned on expectations that an ageing local population and foreign demand for affordable healthcare services will further boost its business.
Bangkok Dusit Medical Services (BDMS) plans to add around 800 new beds at its hospitals to raise the total to 9,600 by the end of 2027, the company said after its earnings release on Wednesday (Feb 26). That’s more than the 9,300 target that chief executive officer Poramaporn Prasarttong-Osoth revealed in July.
BDMS, Bumrungrad and other peers have benefited from government plans to cement Thailand’s status 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 South-east Asia’s second-biggest economy.
“Thailand has strong potential in healthcare from our high-quality and cost-effective services,” BDMS said. “That attracts health-conscious travellers from around the world.”
Bangkok Dusit reported that fourth-quarter net income rose 10 per cent from a year earlier to 4.3 billion baht (S$170 million), exceeding analyst estimates. Bumrungrad, the nation’s No 2 private hospital operator, also posted higher-than-expected fourth-quarter net income of 1.9 billion baht, an 11 per cent increase from a year earlier. Shares of BDMS climbed as much as 5.2 per cent, the biggest gain since Nov 13, while Bumrungrad’s stock jumps as much as 5.7 per cent, the most since Apr 25.
BDMS will also bet on the wellness-business trend with the construction of a new facility in central Bangkok to meet rising demand from international visitors.
The BDMS Silver Wellness & Residence project, which will include a retail space, a hotel and residences, is set to be the company’s key earnings-growth driver when it starts operation in 2030.
BDMS announced plans in 2022 to invest around 24 billion baht in the new wellness centre in the capital. The company operates 58 hospitals in Thailand and Cambodia under the Bangkok Hospital, Samitivej Hospital and Phyathai Hospital brands. BDMS earned about 30 per cent of its revenue from foreign patients, most of whom are from Cambodia, China, the US and Japan, according to company data. BLOOMBERG
