Hospitals Weigh Blast Impact: Further Tensions May Deter Foreign Patients

By Charoen Kittikanya, Bangkok Post, Thailand

Jan. 10–The recent tension in Bangkok has so far had limited impact on Thailand’s health-care business, but experts warn that more bombings will definitely put the the industry in jeopardy as foreigners start to avoid the country.

According to Dr Karoon Mekanontchai, medical director of Bumrungrad Hospital, only four foreign patients, two from Bangladesh and another two from the Middle East, had cancelled appointments since the bombings on New Year’s Eve.

Bumrungrad is one of a handful of local hospitals that rely heavily on patients from abroad. It treated an estimated 450,000 foreign patients in 2006, a rise from 400,000 a year earlier. If domestic patients are included, the hospital treated more than one million patients in 2006.

According to Dr Karoon, about 45 percent of the patients seeking treatment at Bumrungrad had prearranged appointments with doctors.

He said the number of foreign patients would likely account for 50-55 percent of total patients if the domestic economic environment were in good shape and no more bombings broke out in Bangkok.

However, Dr Karoon said that given the volatile atmosphere, the baht appreciation and political uncertainties, Bumrungrad planned to revise its business outlook and projected number of foreign patients.

“Before the coup, we were strongly upbeat about the hospital’s business prospects in 2007, with growth of at least 15 percent and the number of foreign patients increasing to 500,000 to 550,000 this year,” he said. “But due to the coup and several other unfavourable factors, it would be great if we could achieve 10 percent revenue growth and the number of foreign patients reached 500,000.”

For the first nine months of 2006, Bumrungrad Hospital (BH) earned a profit of 842.11 million baht, up from 779.83 million in the same period in 2005. The hospital generated revenue from hospital operations for the period worth 5.76 billion baht, up from 4.91 billion a year earlier.

However, despite the ongoing bomb hoaxes and political and economic difficulties, Dr Karoon predicted the health-care sector would remain on track in terms of growth. He attributed this to the country’s quality medical services which combined international standards with affordable prices, recovering tourism and above all, Thai hospitality.

Bangkok Hospital, the flagship of Bangkok Dusit Medical Services Plc (BGH), also said it remained unaffected by the violence.

Bangkok Hospital, Soi Soonvijai, treated 292,000 foreign patients last year. But in the total Bangkok Hospital network, which includes those under the Samitivej and BNH brands, more than 500,000 sought medical treatment in 2006.

Dr Chatree Duangnet, chief operating officer of BGH, recently projected the growth rate of foreign patient visits at Bangkok Hospital would remain robust, at 40-50 percent of the total patient base.

Dr Chatree attributed the rise in foreign patients partly to government contracts, particularly in the Middle East, such as a corporate contract with Dubai Medical Services of the Dubai Health Ministry. The group is also seeking similar contracts with other governments such as Qatar.

The group posted the strongest profit among the SET-listed health-care providers of 996.658 million baht for the first nine months of 2006, up from 597.25 million baht in the same period last year.

BGH and subsidiaries generated the highest patient service revenue of 11.31 billion baht in the same period, an increase of 55.2 percent from 7.28 billion in 2005.

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