Hospital group has ambitious plans
Phyathai Hospital Group and Paolo Memorial Hospital Group have an ambitious plan to become one of the three biggest players in Asia in 2015 and in the Asia-Pacific region in 2018 after a merger in April last year with Bangkok Dusit Medical Services (BGH).
The merger has created the biggest hospital chain in Southeast Asia, with 28 hospitals in its networks across the nation, and two in Cambodia. The deal was worth Bt12.6 billion.
The Health Network Group operates the Phyathai Hospital Group and Paolo Memorial Hospital Group, while BGH operates Bangkok Hospital. The number of registered beds is expected to total 5,000, with 2,000 full-time and 4,000 part-time doctors.
However, the group needs to expand its network after the implementation of the Asean Economic Community (AEC) in 2015. One of the ways is to tap funds from foreign investors, according to Att Thongtang, the Health Network Group’s chief executive officer.
Att said the merger helped create the expansion of the hospital network in Thailand, which will help attract foreign investors.
At the same time, the expanded size of its chain will help avoid the entry of investors to the country simply to go on a “shopping spree” for small operators, he said.
After the merger, the two started sharing strengths, especially doctor networks, information technology systems and research. Also the firm has put a big effort into meeting international standards.
Yesterday, Phyathai Hospital Group adopted a strategy of co-branding with Bangkok Hospital. The firm had spent more than Bt100 million to set up a heart centre at Phyathai Hospital 3 in Thon Buri by adding the Bangkok Hospital name to the centre’s brand. Bangkok Hospital is considered the country’s chief specialist in treating heart disease.
However, Chatree Duangnet, BGH vice president, said the group would keep focusing mainly on local patients because of the large market. Its policy is to serve all patients, from members of the government’s Bt30 medical scheme to premium services for wealthy people.
At the same time, it will serve foreign patients. Currently, medical costs in Thailand are more competitive than those of regional rivals – especially Singapore, which is three times as expensive. Many foreigners come here for medical treatment.
Currently, foreign patients make up 40 per cent of the group’s sales, especially at Bangkok Nursing Home Hospital.
