Chart of the Week: Bright future ahead for Thailand’s private healthcare providers

Thanks to its medical tourism hub status.

Thailand’s private healthcare providers are well positioned for growth as the country’s status as a medical tourism hub, piggybacking local demand for medical services.

According to a report by BMI Research, private hospitals also have the opportunity to expand into frontier markets such as Indo-China, which will, in turn, shape the sales channels for pharmaceutical firms with high-value pharmaceuticals and serve as a growing alternative to the public medical system.

BMI Research added that political instability remains the significant roadblock to this goal, deterring medical tourists to enter the country.

“For the year 2015, leading firms such as Bumrungrad International Hospital saw revenues rise by a strong 13% year-on-year (y-o-y) to amount to THB17.6 bn (USD50 1mn), while Bangkok Dusit Medical Services increas ed its income from THB54 bn (USD1.5bn) to THB6 0 bn (USD1.7bn),” BMI Research said.

BMI Research added that both firms also saw profits trend higher, with Bangkok Dusit noting a 7% y-o-y rise and Bumrungrad reporting a 26% rise from a smaller base.

“A sustained growth and expansion of private healthcare providers will have important ramifications for pharmaceutical firms as they represent key sales channels for high-value medicines,” BMI Research said.