THG revenue rises on service provision

Thonburi Hospital Group (THG), Thailand’s third-largest private hospital chain, posted rising revenue in 2016, largely from its own hospitals and from the provision of hospital management services.

Chairman Boon Vanasin said total revenue rose to 6.2 billion baht in 2016, up 7.6% from the previous year’s 5.8 billion baht.

“Revenue mostly came from major hospital-related businesses that have continued to grow,” said Dr Boon.

However, net profit dropped slightly to 511 million baht in 2016, down from 552 million baht in the previous year.

In 2016, revenue from its own hospitals as well as revenue from managing operations for other hospitals rose 10.2% from 2015, while revenue from the sales of medical equipment and the operation of nursing homes grew 53.3%.

Dr Boon said the company expected revenue to continue growing this year from its expansion, which seek to capitalise on rising demand for medical care and services as Thailand becomes an ageing society.

“We aim to increase our capacity to meet rising demand as there are indications of rising patient numbers, especially for medical specialities,” he said.

THG runs seven hospitals, including two new ones. The five hospitals, with a total of 780 beds, are located in major Thai cities: Thonburi Hospital 1 and 2, Ratyindee in Hat Yai, Sirivate in Chanthaburi and Ratchavej Ubon Ratchathani.

The two new ones started operation last year: a 100-bed hospital in Uttaradit province, and one in Weihai, China with 150 beds. The Weihai hospital is a joint venture between THG and local partner Weto Group worth US$800 million.

THG also plans to invest another 7-9 billion baht this year to build new hospitals and nursing homes on the outskirts of Bangkok. The new facilities are expected to be operational within three years.

The group plans to focus on specialist centres in Thailand and investing more in Cambodia, Laos, Myanmar and Vietnam. In China, THG is interested in investing in Nanjing, Hangzhou, Hainan and Kunming.