Private hospitals shift towards ‘beyond treatment’ services amid ageing society

This shift is directly impacting the healthcare sector, especially private hospitals, which are being forced to rethink their strategies to stay competitive in the changing landscape.

According to the Department of Health Service Support under the Ministry of Public Health, the number of licensed private hospitals increased by 29 between 2022 and 2024, rising from 411 to 440 nationwide. Bangkok added 12 hospitals, from 133 to 145, while regional areas saw an increase of 17, from 278 to 295.

Private clinics have expanded even more rapidly, growing by 6,389 to a total of 40,552. Of these, Bangkok gained 1,218 new clinics, bringing its total to 8,273, while upcountry areas added 5,171, reaching 32,279 clinics.

More small and specialised hospitals emerging

Paiboon Eksaengsri, president of the Private Hospital Association, told Krungthep Turakij that before the COVID-19 pandemic, there were just over 300 private hospitals in Thailand. “Today, we’re seeing a rise in smaller facilities with 10 to 30 beds and many specialist hospitals,” he said.

He explained that smaller hospitals require lower investment and offer quicker returns, focusing on specific services such as health check-ups, orthopaedics and ophthalmology — all aligned with the needs of an ageing population.

Demographic and disease patterns shift

As Thailand’s population structure evolves, so too do its health challenges. In the past, when birth rates were high, paediatric diseases dominated the healthcare landscape. 

Now, while child-related conditions have decreased in number, the demand for quality and preventive care — from pre-pregnancy to postnatal stages — has grown among both public and private providers.

Conversely, age-related and degenerative diseases are on the rise. Chronic non-communicable diseases (NCDs) such as diabetes, hypertension and hyperlipidaemia — the precursors to cardiovascular disease and stroke — are becoming more prevalent, alongside cancer and musculoskeletal disorders, all linked to ageing and lifestyle factors.

Nearly all major private hospitals are expanding into this area, offering new services such as genetic-risk screening and comprehensive preventive health programmes. The wellness business segment is poised for long-term growth.

Emergence of new product models

Thailand’s ageing society has also given rise to innovative business models blending healthcare with real estate. Older adults — as well as younger, single professionals without heirs — increasingly seek housing with convenient access to healthcare services.

This has spurred collaborations between private hospitals and property developers to create residential projects with integrated medical support. At the same time, major real estate groups are beginning to invest directly in hospital ventures, creating a new category of products that reflect the changing needs of Thai society.

Challenges facing private hospitals

Paiboon Eksaengsri noted that private hospitals continue to face several key challenges, particularly medical inflation, which has surged to around 15% per year, far exceeding general inflation of 3–5%.

The main drivers are the high costs of advanced medical technologies and equipment — most of which must be imported and are extremely expensive.

This has placed heavy pressure on hospitals to manage their costs efficiently while maintaining quality care at prices accessible to patients, amid intensifying market competition.

“People often say private hospitals are expensive,” Paiboon explained. “But the reality is that we invest heavily in advanced equipment and technology, which drives up costs. At the same time, competition among private hospitals keeps prices in check — if fees are too high, patients will simply go elsewhere.”

He added that beyond the hospital sector, other parts of Thailand’s healthcare ecosystem must also develop in line with the ageing population — especially in the production of medical equipment, treatment technologies, and rehabilitation devices, as the country still relies heavily on costly imports.

Finally, Paiboon emphasised that private hospitals depend entirely on their own investment, unlike state hospitals that can provide free services. Fair competition and clear regulations are therefore crucial to enable private hospitals to continue investing and improving their services as the economy adjusts to an ageing society.

“Private investors should not be restrained or over-regulated to the point of discouraging growth,” he said. “We need support from the government to allow private hospitals to develop fully and attract more investment into Thailand’s healthcare sector.”