Bumrungrad Hospital Public Company Limited
Thai vs. international patients (% of total revenue) Revenue contribution by nationality 100% 80%
45%
46%
45%
43%
41%
39%
55%
54%
55%
57%
59%
61%
2007
2008
2009
2010
2011
2012
60% 40% 20% 0%
International
Thai
* Note: International patients are by nationality and include both expatriates and medical tourists. The Bangkok Facility: At present, the hospital’s services are offered in three buildings: 1. Bumrungrad International Clinic Building is a 22-storey outpatient facility, with the first ten floors being used as parking spaces and the top 12 floors as outpatient clinics and ancillary services. The building offers outpatient services only. Currently, five clinic floors are open for service, including the health screening (check-up), heart, medical/surgical clinics, infectious disease, kidney, neurology, pulmonology, rheumatology, urology, and men’s centers together with two non- clinic floors for patient services and restaurant. The Bumrungrad International Clinic Building has five floors of outpatient clinics remaining unopened. The Company plans to gradually occupy the five remaining floors of this building, operating four as outpatient clinic floors and one as a new conference and educational center floor. 2. Bumrungrad International Hospital Building offers a combination of inpatient and outpatient services. The licensed capacity for 538 inpatient beds resides within Bumrungrad International Hospital Building, while outpatient services offered in this building include services such as the cancer, dental, digestive disease, children’s and women’s centers. The Company plans to gradually renovate an additional 61 ward beds and 44 ICU beds in BI Hospital Building to serve the additional demand from our patients. 3. BH Tower, reacquired in 2008, allows flexibility in the use of space on the Bangkok campus, permitting the shifting of office functions out of the hospital building and into BH Tower to allow expansion of clinical activities as needed. BH Tower houses the hospital’s skin center, hospital support services, the Vitallife clinic, and offices. It also houses the BH Residence serviced apartments, retail shops and restaurants, and 7 floors of parking spaces.
Bumrungrad International Limited Bumrungrad International Limited (BIL) has served as the Company’s international investment arm. BIL has focused on hospital ownership and management. During 2011, BIL divested its last core asset, comprising direct and indirect interests in Asian Hospital, Inc. in the Philippines and did not renew its contract to operate Mafraq Hospital in Abu Dhabi. In 2012, BIL ceased its operating activity and pursued the distribution of its funds to shareholders via capital reduction.
Industry and Competition In general, the demand for healthcare correlates with the growth of GDP and the aging of the population. From time to time, issues such as domestic political unrest and global as well as domestic economic downturns can affect the growth in consumption of private healthcare. The Company believes that with the supply of private healthcare facilities in Thailand exceeding domestic demand, the competition for Thai patients remains intense. While the global medical tourism industry is expected to see continued growth, the Company believes that most international demand will arise from patients living within an 8-hour flight of Bangkok. Thailand’s regional competitors are hospitals in countries such as Singapore, Malaysia and India. Private hospitals in Thailand have a competitive advantage compared to many other countries, as Thailand has a unique combination of high quality healthcare, accessibility and affordability, coupled with Thailand being a popular tourist destination with a good supporting infrastructure. Within Thailand itself, there are a limited number of private hospitals that have the broad range of specialties and subspecialties, technology and quality of patient care on a single campus, as offered by the Company.
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