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Published on March 18, 2008

Bangkok Dusit Medical Services (BGH) is negotiating with investors in Saudi Arabia to co-invest in a private hospital there as part of its policy to expand its business overseas.

BGH operates 19 hospitals in Thailand and overseas under brand names Bangkok Hospital, Samitivej Hospital, BNH Hospital and Royal International Hospital.

President Wallop Adhikom-prapa said yesterday that the company was seeking opportunities overseas to increase its revenue in the face of fierce competition in Thailand.

The company has constructed a 30-bed hospital in Abu Dhabi at a cost of Bt300 million. It is scheduled to open in September.

"Saudi Arabia is a good country to invest in, as are other Middle Eastern countries. I believe many people in the region are unaware of our expertise and good hospital management," Wallop said.

"Although there are business opportunities, it is quite difficult to take advantage of them. However, we do expect to conclude a deal this year.

"BGH's policy is not to spend a lot of money building new hospitals in the region. However, we see the possibility of co-investing with local investors and signing hospital management contracts."

Chatree Duangnet, chief executive officer of BGH's Bangkok Hospital Medical Centre, said many investors in Middle Eastern countries and US healthcare chains were building new hospitals to treat people who are choosing to fly to countries such as Thailand, Singapore and India for treatment.

BGH forecasts that patients from the Middle East will decline over the next three to five years as new hospitals are completed in the region.

"If we do nothing, revenue from Middle Eastern clients will disappear. We have to establish our own base in those countries in order to maintain the hospital's growth rate," he said.

"If our expansion plans are successful, we will gain revenue from overseas and our partners can fly patients for treatment at BGH's hospital network in Thailand. It will ensure that revenue will not decline over the next five years."

Chatree said if the Saudi deal was concluded satisfactorily, BGH could rotate its medical personnel to work there.

Last year, people from the United Arab Emirates who came to Thailand for medical treatment contributed Bt3.6 billion to BGH's revenue of Bt18 billion.

BGH plans to invest Bt2.2 billion this year, of which Bt1.2 billion will be spent on new hospitals in Thailand and overseas. The remainder will go on the maintenance of medical equipment.

Last year, BGH had a soft opening of a new 30-bed hospital in Phnom Penh which will become fully operational in the third quarter of this year.

The company is also constructing another hospital with 100 beds in Phnom Penh and a 50-bed hospital in Hua Hin.

Chatree said BGH recently revised down its target revenue growth for this year to 10-15 per cent due to the economic slowdown. The company had earlier aimed for growth of 15-20 per cent.

Nalin Viboonchart

The Nation