(Bloomberg) -- 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 Pcl 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. The company will focus on upgrading facilities such as cancer centers at its existing hospitals, rather than building new ones, to meet surging demand for treating non-communicable diseases, she said.
“There is a lot of growth potential for overseas markets with lower costs of living and medical treatments in Thailand,” Poramaporn 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 rolled out a roadmap to cement Southeast Asia’s second-biggest economy 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 the health ministry’s 10-year medical-center plan, which will be submitted for cabinet approval soon, 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 regions 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 first-quarter net income. Revenue from international patients rose to 30% of total hospital income in the period, up from 27% throughout 2023, according to the company’s data.
BDMS is betting the wellness-business trend will continue by building a new facility in central Bangkok to meeting rising demand from international visitors, said Poramaporn. The BDMS Silver Wellness & Residence project, which will include a wellness center, retail space, a hotel and residences, is set to be the company’s 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 ($663 million) in the new wellness center in the capital. The company’s existing wellness facility in downtown Bangkok has demonstrated growth with positive cash flows after the pandemic heightened awareness of health issues and increased demand for preventative treatments, according to Poramaporn.
BDMS operates 59 hospitals in Thailand and Cambodia under the Bangkok Hospital, Samitivej Hospital and Phyathai Hospital brands. BDMS’s largest sources of foreign patients are Cambodia, China, US, Japan and the UK, according to company data.
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