Bangkok seeks additions to hospital chain

Bangkok Chain Hospital (BCH), the operator of Kasemrad Hospital and World Medical Center, is in talks to acquire 3 or 4 hospitals upcountry after its board approved a $154 million budget for expansion.

Chairman and chief executive Chalerm Harnphanich said BCH plans further expansion, particularly on the outskirts of Bangkok and in big cities upcountry, despite the prolonged political unrest.

BCH forecasts 2014 revenue growth of 15% from about $154 million last year.

BCH aims to operate two more branches in the northern part of Bangkok later this year after acquiring assets from local hospital operators at the end of 2013.

Some 68% of BHC's revenue is from the high-end sector with payment in cash, with the rest from patients who receive treatment under the Social Security Fund.

Most of BCH's foreign patients are expatriates who live and work in Thailand. Foreign patients generate 20% of total revenue.

BCH hopes to attract more patients from Indochina. The group recently acquired a local hospital in Chiang Rai to provide additional medical services to patients from Myanmar.

"From now on, these countries will be large revenue generators because Thai medical services have become increasingly popular among patients from neighboring countries," Chalerm said.

BCH signed a partnership deal with Family Mandalar, the operator of a local private hospital in Myanmar, to exchange technical and medical expertise. Family Mandalar runs hospitals in Mandalay and Taunggyi and is developing a large hospital in Yangon.