The outlook for private hospital business remains promising because it has maintained double-digit growth rates in recent years, thanks to growing number of international patients. Looking into 2017 and ahead, we at KResearch expect that private hospitals listed on the Stock Exchange of Thailand (SET) will be driven further by international patients, in particular medical tourists, given that the share of such patients versus the total income of listed private hospitals rose to 27 percent in 2015, beating the 25 percent reported for 2011. That figure is projected to reach 30 percent in 2017.
Meanwhile, Thai patient turnover in private hospital business has largely been supported by rising medical costs due to inflation and the increasing complexity of diseases. The number of domestic patients visiting private hospitals for medical treatments has not grown significantly, though, as evidenced by the marginal turnover growth attained from Thai patients.
Thus, private hospitals may have to seek other income other than from the treatment of Thai patients. KResearch is of the view that non-hospital businesses have the potential to provide additional income for private hospitals, including home healthcare medical devices, services for the elderly (e.g., nursing homes), in-patient food services and pharmacy.