Hospital and Health care, New battle ground for large Thai Capital Group
Under the National Strategic Plan, the National Peace Corps (NCD) is set to develop Thailand into a global health hub in four dimensions, both in terms of being a hub for wellness services, Medical Hub, Academic Hub, and the Hub of Product and Health care are all contributing to Thai hospital and health care business. It is a business that has been targeted by large capital groups to expand the business empire that is worth pursuing.
An interesting fact of the hospital business and health services in the past was. The business has a market value of nearly 700 billion, and the growth trend is due to the effect of entering the elderly society. Paying attention to care and maintain the health of the people encourages businesses to have more opportunities to grow.
While state policy is tantamount to reinforcing the opportunity for this business. In particular, the users of the government budget support. In terms of national health insurance. Civil and Civil Rights Include social security. Each year, more than 300 billion Baht is spent on medical treatment, which will make it worth the trillions of dollars in the near future.
In the past, the proportion of private hospital users accounted for 70% of total hospital revenue. However, under the marketing plan for health tourism, the international customer base is likely to increase and that is the factor that causes the entrepreneur to generate income only medical expenses up to at least 40 billion a year.
Among the positive factors that support growth in the future. As a result, the hospital business became a new business arena that the original operator and new ones trying to expand and adjust the business model to fit the behavior of consumers.
Previously “Bangkok Hospital Group” (BDMS) of Dr. Prasert Prasat Thong O Soth, he is the market leader. The move to support Thailand’s development policy as a global health center. By buying land and building on Wireless Road. The first “BDMS Full service Wellness Clinic” in Asia.
Dr. Boon Wanasin, Chairman of Thonburi Hospital Group, plans to develop Rangsit area to establish Medical City under the concept of creating a city with comprehensive medical services and health-related businesses.
Dr. Arthit Ourairat, former executive and owner of Phayathai Hospital return for the hospital and health business again, planning to build RSU International Hospital (RIH), a 304-bed hospital located on 11 rais of land on the new Phetchaburi Road. It is expected to be completed by year 2020.
More interesting is the expansion of the business into the medical industry and hospitals of non-industry players. In the case of Pruksa Holdings Plc., Thongma Vijitpongpun Originally, the game penetrated the business into the hospital business for additional regular income and mitigate the volatility of the housing business.
Charoen Pokphand Group (CP), a big business empire worth millions of baht It covers Dhanin Chearavanont’s diversified business with plans to expand into the hospital business and health services through the establishment of CP Medical Center in the past year.
Just like the movement of progress Jaroen Siriwattanakul, owner of Chang’s beer, is going to expand into the hospital business and health services too.
The movement of large capital groups into penetration into the hospital and health business. On the one hand, it can be estimated that it is a result of revenue scaling efforts by establishing recurring income portfolios and investing in assets that continue to secure income. No fluctuations in economic conditions. At the same time, it is a low-risk business with continuous growth every year.
But in another dimension, new capital groups will be found. Entering into the hospital business are all big capitals with real estate development portfolios in hand.
This has led to an expansion into the hospital and health care business. It is as if the business is ready to provide more opportunities for their business.
However, there are now over 340 private hospitals nationwide and there are no less than 35,000 beds. Part of the concentration in Bangkok and with the high demand trend. Coupled with continued business growth. Many entrepreneurs continue to expand their investment. It is expected that by the year 2020 there will be a new private hospital in Bangkok-another 5-6 suburbs, an additional 2,000 beds.
Interestingly, from the Office of Natural Resources and Environmental Policy and Planning (IPP), over the past few years, private hospital entrepreneurs have filed Environmental Impact Assessment (EIA) applications for both new and expanded projects. For Bangkok. Approved 7-8 projects, 152-bed hospital of KPN Health Care Public Company Limited, Narongdej Family and Srikraiwin Family. Wimutti Hospital, 254 bed room of Pruksa Group Plc., Thanyivej Hospital, Lamlukka. Sinbhat Hospital, Bangna and Inthararat Hospital.
But the most amazing case seems to be the case of Mahachai Hospital’s, 550 beds. The company has invested 15 Billion Baht in TPP Healthcare International Co., Ltd. It is a large private hospital that has never invested in Thailand except in the case of a public hospital.
Or even in the case of hospitals under the banner, Dusit Medical Services (DMS) is the largest hospital in Thailand, including Samitivej, BNH Hospital, Phyathai Hospital Group, Paolo Memorial Hospital and Royal Hospital Group. If there is a single hospital, the number of beds is less than 550 beds.
Building new 550 beds hospital is not something that will happen easily. But it is a serious challenge in terms of the wealth of capital. Or even the issue of medical professionals who seem to be a resource that is ready to be scrambled in the future. In addition to being pulled between private hospitals together. Newly opened hospitals are also available to draw doctors from state hospitals. Especially personnel Experienced and special expertise to be featured and point of sale.
Interesting point of entry of new capital group in the hospital business. It is open to competition in both service and advanced technology and to stimulate the development of the Thai medical industry to become a medical hub. But in another dimension, there is an uneasy picture about the basic health care services for the people.
The fact of the hospital business from now on is a fascinating movement, because while hospitals seem to be important, it is inevitable in times of illness. It is not like eating food to suppress hunger. But the hospital still relies on reliability. It takes time to build reputation.
Challenges for new venture capitalists moving into the hospital business. It is not at the base of capital alone. But it also involves team building and staffing with medical personnel. It is a front view of the interaction with the service.
The pace of large capitalist groups penetrating into the medical industry. It is not just a business expansion to increase wealth. But it is like a central arena. To measure management potential and business vision. This may indicate the skill of the people in the organization to the public.