Bumrungrad rated A+ for strong brand
Tris Rating assigned Bumrungrad International Hospital (BH) an A+ rating, reflecting the company’s leading position in the premium segment of the local private healthcare market and its strong financial profile.
BH focuses mainly on high-end local and international patients, with revenue ranked the second-highest among private hospital operators.
Despite the economic slowdown in domestic and Middle East economies, BH’s revenues and profitability continue to grow, with an annual growth rate of 6.38% for revenue and 11.8% for net profits from 2013-2017.
Tris expects BH’s revenue to grow slightly at 1% per year during the next three years.
The agency believes BH should be able to maintain its strong market position in the medium to long term. BH’s ability to post strong and steady growth in revenues is underpinned by a strong brand name, high quality of medical staff and continual investment in high-tech medical equipment.
BH has earned a strong brand recognition among both Thais and foreigners. Patients from the Middle East have accounted for one-third of BH’s foreign patients during the past three years.
Tris believes a higher portion of foreign patients helps to diversify BH’s sources of revenue, reduce its reliance on domestic demand and decrease the competitive pressure from domestic peers. The large number of foreign patients also yields economies of scale, as overhead costs for hospitals accepting foreign patients are relatively high.
However, these strengths are partially offset by intense competition in the local and international healthcare markets, and the slowdown in the growth of patient numbers, especially patients from Middle East countries.
The Board of Investment reported private hospitals in Thailand targeting medical tourists have to compete with overseas hospitals from Asian countries like Singapore, Malaysia, Hong Kong and India. The average number of foreign patients receiving medical services in Thailand was reported at 2 million persons per year during the last three years.