Although consumer purchasing power is being pressured by the high cost of living and uncertainties surrounding COVID-19, the nursing home business may continue to perform relatively well during 2022 as it is one of the healthcare services that are necessary for many seniors/patients. Additionally, the consumer segments that use nursing home services are those having adequate purchasing power as an average service fee is relatively high in line with the standards and expertise of related personnel, including the convenience in transferring patients to hospitals if more sophisticated treatments are needed or in case of emergency.
KResearch projects that spending on nursing home services will reach THB12.7 billion in 2022, an increase of 3.5 percent YoY, due to the rising service fees resulting from higher operating costs. Major users are still Thai patients and seniors, who require long-term care (3-6 months or longer) and have moderate-to high purchasing power (their average spending on nursing home services is THB30,000/month and higher). The number of such patients and seniors is set to reach approximately 130,000 per year. The number of international patients requiring nursing home services following their medications at major hospitals are projected to be lower than their Thai counterparts although it may gradually pick up after the opening of Thailand to foreign tourists.
Looking ahead, the nursing home business is projected to thrive as it remains attractive to existing and new players in terms of investment to facilitate future demand. Operators that have potential include: 1) those that are strategic partners with hospital networks, and 2) those offering a comprehensive range of services that are in alignment with specific needs. Although the business is supported by increased demand in line with demographic structure and disease risk, service users may be limited to those who are in need and have sufficient purchasing power. As a result, the nursing home business is relatively competitive as operators are vying to tap potential customers. Service quality in line with the required standards, reliable and competent personnel, convenient location and appropriate service fees are success factors of the nursing home business over the long term.