BGH Plans Region-Wide Expansion: Cambodia and China Eyed By Hospital Group
Posted on: Tuesday, 7 March 2006, 12:01 CST
By Charoen Kittikanya, Bangkok Post, Thailand
Mar. 7--Bangkok Dusit Medical Services Plc (BGH) is committed to acquiring more hospitals to expand its network, according to the group's chief operating officer.
The operator of Bangkok Hospital chain, said it would count on a networking strategy to boost its business growth.
"We are still committed to acquiring more hospitals to expand our network," according to Dr Chatree Duangnet, Bangkok Hospital group's chief operating officer. "Our strategy is just to expand, not to acquire hospitals for sale later on for the sake of capital gains."
According to BGH's executives, BGH wants to expand its network to 20 hospitals over the next five years, particularly in strategic locations within a 250-300 km radius of Bangkok.
"We [BGH Group] have positioned ourselves like the European Union, which is composed of a lot of networks and friends, which will enable us to cope with all price levels," said Dr Chatree.
"A strong network will also help to strengthen the group's operations and increase bargaining power in buying medical equipment."
BGH currently operates over 15 hospital chains under the three strong brands -- Bangkok Hospital, Samitivej, and BNH.
The company also now holds a majority share of 19 percent in SET-listed Ramkhamhaeng Hospital which operates 10 facilities.
They are the main hospital at Ramkhamhaeng Road, Chiang Mai 1 and 2, Synaphaet Hospital at Ram Intra Road, Vibhavadi 2 Hospital, the Khon Kaen Ram Hospital, Muang Loei Hospital, Phayao Ram Hospital, Khelang Nakorn-Ram Hospital in Lampang, and Chaiyaphum-Ram in Chaiyaphum.
BGH is drawing up an expansion plan for the regional market. The first investment project in Siem Reap has been scheduled to open for commercial operations in October.
BGH holds 80 percent of the 400-million-baht joint venture in Siem Reap, with local investor Siang Num, 20 percent.
According to Dr Chatree, BGH is also conducting a feasibility study as to whether it should invest in another hospital in Phnom Penh, the deal is scheduled to be finalised within six months.
Apart from Cambodia, president Pongsak Viddayakorn has said that BGH was also dusting off expansion plans in China to tap into growing affluence in the mainland.
Previously, the group had scrapped a plan to invest in the hospital business in Shanghai because of high costs and complicated regulations.
BGH currently operates eight offices in Cambodia, Bangladesh, Vietnam and Burma to handle marketing activities among local customers.
BGH projected the group's revenue would increase by 33 percent this year to 16 billion baht compared with 12 billion baht last year.
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Source: Bangkok Post
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