Tuesday, June 22, 2021

business

Second Covid-19 wave gives hospital shares a boost


The price of hospital shares began to rise in the Stock Exchange of Thailand amid higher revenue prospects from the second Covid-19 wave.

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Hospitals can generate revenue from conducting Covid-19 tests, opening their facilities to serve as alternative hospital quarantine and deputing medical personnel to alternative state quarantine facilities.

After receiving approval from the Food and Drug Administration, hospitals will be able to procure Covid-19 vaccine to vaccinate people as well.

An analyst at DBS Vickers Securities said the government's partial lockdown to deal with the pandemic would have a short-term impact on hospital share price because the number of people using medical services would increase once the Covid-19 vaccine arrives.

"We expect hospital business to gain positive sentiment from an ageing society, and medical tourism which is likely to expand," he said, adding that Thai expenditure on health would increase from Bt415 billion in 2018 to between Bt1.407 trillion and Bt1.825 trillion in 2030.

Published : January 11, 2021

By : The Nation