Feb
22
Bangkok Dusit Medical Services Invests In Thailand’s Bumrungrad Hospital
By Thomas | Published February 22, 2011
Bangkok Dusit Medical Services (BGH) has acquired shares which will give the hospital group an 11 percent stake in rival private hospital operator Bumrungrad Hospital as the private health operator continues to strengthen the group’s position in the Thailand healthcare market.
The share purchase covers over 46 million ordinary shares in Bumrungrad Hospital representing 6.32 percent of the total issues and paid-up capital, together with 35 million units of non-voting depository receipts valued at 4.79 percent of the Bumrungrad business. The Bumrungrad Hospital is listed on the Stock Exchange of Thailand, with a total investment valuation in the region of US$91 million.
The move by BGH to invest in the highly regarded Bumrungrad Hospital is part of the group’s strategy to achieve synergies between medical operations in a bid to lower costs and strengthen its position in the expanding private healthcare market in Southeast Asia.
After the initial acquisition of the 11 percent stake in the Bangkok-based hospital company, the Bangkok Dusit Group said that it might consider the acquisition of more shares in Bumrungrad if the investment represents value for money.
The new partnership is expected to benefit both parties as combined operations will help with the control of medical costs, resource management and general overheads at a time when healthcare costs are under pressure from inflationary increases.
This recent move by BGH follows its merger in 2010 with private hospital chain the Health Network Group (HNG) in Thailand. The deal which is set to be completed later this year will cost Bangkok Dusit approximately US$315 million, providing access to the Phyathai Hospital and the Paolo Memorial Hospital and six other private hospitals in HNG’s ownership.
Bangkok Dusit has been initiating investment schemes recently to consolidate its position in the private health market in Southeast Asia especially Thailand. Following the take-over of the Health Network Group, Bangkok Dusit becomes the second largest hospital group in the Asia-Pacific region outside Japan.
The private healthcare sector plays an increasingly important role in the provision of health service for the more affluent population in Thailand. Along with domestic patients, the Thai private healthcare sector has built a strong reputation in the provision of medical tourism services; Thailand is joining India and Singapore as being prime destinations for foreign clients seeking affordable and high quality medical procedures.
The Bumrungrad Hospital has become one of the favored destinations for medical tourism in the Asian region, with the Bangkok-based hospital having facilities for inpatient and outpatient services covering a wide range of treatments.
BGH’s decision to invest in one of Asia’s leading private hospitals enhances its position in the provision of quality private hospital services with the ability to integrate activities with its existing operations to achieve cost savings and improve its competitiveness in the private healthcare sector. This comes at an opportune time with the potential for increased demand for medical tourism services arising from reforms taking place in major western hemisphere countries such as the UK and USA in addition to the growing affluence of Thailand’s indigenous population.
Thailand is one of the leading countries in the private healthcare market in the Asian-Pacific region, with the Bumrungrad being the largest hospital in the country having capacity to deal with over 2,500 outpatients daily. Bangkok Dusit is already the market leader in Thailand with a network of 19 private hospitals, which is set to increase to 27 hospitals after acquisition of the Health Network Group is finalized.
While the Bumrungrad hospital is located in Bangkok, it has an international reach with offices worldwide catering for international patients wishing to visit the Burmrungrad hospital. The Bangkok based hospital caters for over 1 million patients a year, with around 400,000 being international patients.
Companies mentioned:
Bangkok Dusit Medical Services
Bangkok Dusit Medical Services was founded in 1969 and the Bangkok hospital started its operation in 1972. Bangkok Dusit Medical Services operates a private hospital network in Bangkok, other Thai provinces and in Cambodia. The Group’s private healthcare facilities include Samitivej hospital and BNH hospital.
Bumrungrad International
The Group’s principal activities are owning and operating hospitals. Its flagship hospital, Bumrungrad International, is a renowned medical centre attracting over 1 million patients annually and named one of the world’s top ten international hospitals by Newsweek International. The Company also owns a businesses in real estate and anti-aging and functional medicine.
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[...] This post was mentioned on Twitter by Globalsurance, thailand business and thailand business, thaitvnews. thaitvnews said: Bangkok Dusit Medical Services Invests In Thailand's Bumrungrad Hospital – Globalsurance (blog): Bangkok Dusit M… http://bit.ly/hNMcwu [...]
[...] Bangkok Dusit Medical Services Invests In Thailand's Bumrungrad … [...]
[...] The most recent acquisition in Thailand was made last week by Bumrungrad Hospital Plc (BH), the country’s second largest listed hospital conglomerate. On March 19th, BH purchased a 24.99% stake in Bangkok Chain Hospital Plc (KH), chief operator of Kasemrad Hospital Group, from developer Land & Houses Plc for 3.53 billion baht (US$ 116.7 million) at a share price of 8.50 baht (US$ 0.28) per share. BH has been subject to its own shareholding change recently. Last month BGH purchased an 11% stake in BH. [...]
There is no doubt that medical tourism in Thailand is all set to become a major revenue generator not just for the hospitals but also for the country. The prices offered in Thailand are much lower compared to the U.S. and UK. However, the standard of treatment and technology is as high if not better. One thing is for sure that the hospitals in Thailand more hospitable and friendly.