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UPDATE Phuket's Largest Private Hospitals in 3.6 Billion Baht Buyout, Say Reports
Wednesday, August 27, 2014
OFFICIALS at both Phuket hospitals confirmed on Thursday that the buyout of Phuket International Hospital will take place before 2015.
PHUKET: The BGH Bangkok Hospital group has bought Phuket International Hospital for 3.6 billion baht, Thai news outlets are reporting tonight.
A deal between Phuket's two largest private hospitals would highlight the rapid growth in medical services on the international holiday island in recent years.
Cosmetic surgery and dental treatment at lower cost than in Europe, Australia or the US has been driving extra business in medical tourism.
According to reports, the deal was announced at a meeting of the Bangkok Hospital group's board yesterday.
Plans for both Phuket hospitals are expected to be detailed by the new owners. Both hospital are based in Phuket City.
A third private hospital, Mission Hospital, is also based in Phuket City. Phuket also has three public hospitals.
The newest facility, Phuket Provincial Administrative Organisation Hospital, is a public-private hybrid.
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Comments
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I am not sure that this is a beneficial move in medical services. Now there is no international hospital competition on Phuket. The prices will inevitably go up. Monopoly is never a good idea.
Posted by
Logic
on
August 28, 2014 07:15
This is terrible news. Phuket International was a great hospital. The Bangkok Phuket hospital is unfriendly and way overpriced.
Posted by
BigP
on
August 28, 2014 10:04
This would be a shame from my personal point of view. I am a big fan of Phuket International Hospital (PIH), been using it for 15 years. Nothing against the other one, I just feel PIH is more hospital-like and never had a bad experience, while Bangkok Hospital Phuket feels almost hotel-like. Plus consolidation is unlikely to be of benefit to the consumer. Shame, but the market rules I guess.
Posted by
Duncan
on
August 28, 2014 10:45
What immediately strikes visitors to Bangkok Phuket Hospital is the banks of ATMs near the entrances. This is not without reason: I got charged 4,000 baht there for a smug doctor to tell me I had a backache. I agree, this is definitely not a welcome move for medical services on Phuket.
Posted by
Sam Wilko
on
August 28, 2014 12:57
I'm a customer at both hospitals, mostly use PIH because of old habit and because we like the childrens doctor there. But PIH is usually a bit too crowded, so when we don't have all day we go Bangkok Hospital for a smoother, faster and better service experience. PIH can seem a bit understaffed for a private hospital, more public hospital in feel.
Posted by
christian
on
August 28, 2014 13:27
Almost 110MUSD is not bad ...
Who are the previous owners of PIH?
Posted by
Sue
on
August 28, 2014 14:57
Editor Comment:
A local family.
I have had several bad experiences with PIH, dubious hygiene at the phlebotomy department, waiting for hours to pay bills, etc. Yes BKH is (too) expensive but it has the best, though also not perfect, medical care on the island without a doubt. I thought Mission Phuket Hospital was a public hospital while the Phaya Thai hospital is run by the Or Bor Tor but is in essence a private hospital?
Posted by
Anonymous
on
August 28, 2014 15:05
Editor Comment:
Mission, as the name suggests, is private but low cost. The Orbortor hospital is a hybrid, so we believe.
Sam Wilko
The fact there are ATM machines in the hospital lobby is just a sign of good facitiles and service, and nothing else. Some people might not want to use their credit card for example. Stop being a paranoid fantasist.
Posted by
christian
on
August 28, 2014 15:31
@Ed
Is if the one that is involved in the management of PIH?
Actually price paid is a bit higher : 3.6B THB in cash and 400M in shares, that is roughly 130M USD.
For 281 beds, it means ca.460,000USD per bed. Ok there is an adjacent extents on under construction, but it still mean to generate at least on average 100USD in today's money of net profit per day per bed on assumption of full occupancy, to repay an investment in 10 years.
I wonder how PIH accounts look.
In USA , only few most aggressive hospitals realize operating margin as high 25% of sales, really wonder how it looks here, in order then still to come from operating margin to net profit of 100USD per bed daily.
Posted by
Sue
on
August 28, 2014 16:21
Hi christian. 'Stop being a paranoid fantasist.' You say: Ouch! I refrained in my comment from remarking that there were fewer doctors on call when I visited Bangkok Phuket Hospital than there were ATM machines. Maybe I should have gone into a Sue-length oration in order to make a pretty obvious point, er, well, obvious. No offense intended.
Posted by
Sam Wilko
on
August 28, 2014 18:19
Why is everybody here presuming this will mean the end of PIH as it is?
Posted by
stevenl
on
August 28, 2014 18:47
Bangkok Dust Medical Services PLC , that operates BH, 2013 operating margin from treatment of patients is huge 36%, on par with few most aggressive hospitals-for-profit in States..
And yes, net profit per bed, is ca.100USD per day per bed on assumption of full occupancy , is in line of PIH valuation.
Not bad net profit per bed, hotels of any sector can only dream to realize 100USD per room in stock per day on net profit basis.
Posted by
Sue
on
August 28, 2014 19:05
Editor Comment:
Does any private hospital on Phuket have 100 percent occupancy? If so, it would be defying logic.
@Ed
"full occupancy" is a term for a purpose of model calculation , it could be called instead as "stock of bed" , "number of beds available" etc., so such reference is OK for a purpose of comparability between various hospitals.
Of course, a net profit per occupied bed-day, surely, is even higher.
Posted by
Sue
on
August 28, 2014 20:46
Sue
Why this "bed" talk? Hospitals earn alot of money from all kinds of people coming to see a doctor for a multitude of reasons without ever being admitted. It's a hospital, not a hotel.
Posted by
christian
on
August 29, 2014 04:15
Few days ago, I was hospitalized for 2 night at Bangkok Phuket Hospital and my insurance pays only 50 Euros (+/- 2000 Baht) for the room as all private hospitals in Thailand are abusing international insurances about prices for rooms and health care.
In fact the Bangkok Phuket Hospital has 3 different prices depending if you have insurance or not and if you are a Thai, an expat or a tourist.
1/- Expats or tourists with international insurances are charged 10,000 Baht the night.
2/- Expats and tourists without international insurance are charged 3,800 Baht the night.
3/- Thais without insurance are charged 2,600 Baht per night.
After long verbal fight I got the Thai price and have to pay the 600 Baht extra which is not covered by my international insurance (April International).
Today by buying the Phuket International Hospital, BGH Bangkok Hospital group is the sole health provider to cater foreigners in Phuket and will be able to have inflated prices they wish to apply.
Foreigners and Thais living in Phuket will be the hostages for health care.
Bangkok Phuket Hospital lacks ethic and is not better than jet-ski or tuk-tuk by abusing overpriced health care.
I would be happy to see all health insurance companies lodging complaints with the NCPO for abuse of power, scam and insurance fraud.
Posted by
Whistle-Blower
on
August 29, 2014 11:22
Editor Comment:
There is always Mission, which is very competitive, so I don't see how BGH can be ''the sole health provider.'' Until details are released, you and other don't have any real idea what's being planned.
WB
Most, if not all hospitals here have a lower price for Thai nationals compared to foreigners. Also, charging less if you don't have insurance is standard practise, including at PIH.
Some would even call it more humane to charge less for people without insurance. I'm a bit ambivalent myself.
Plus, charging different prices according to these principles, (insured/not insured, poor/wealthy, local resident/non-local) is also standard practise at most private hospitals around the world.
Posted by
christian
on
August 29, 2014 15:30
Editor Comment:
My understanding is that poor foreigners are treated the same as Thais at public hospitals on Phuket, even if the hospital staff sense that the bill is not going to be paid. Given the range of choices on Phuket, the citizens of many western cities have good reason to be envious.
WB. Your comment is absolutely absurd. You have been around long enough to know the hospitals policy regarding bed pricing. Don't blame your insurance for it but only yourself. I have insurance for myself, my wife and my two young children with BUPA International. It's a Thai insurance who are well aware of Thai pricing for all hospital expenses. I pay about one hundred thousand baht for all four of us per year which is a bargain compared to other parts of the world. Last year I was hospitalized for sixteen days and had five operations all which was paid within my policy. Not a single Thai insurance company would pay more, or agree to higher farang prices, then they should. Of course competition is always a good thing. But it is doubtful wetter there has ever been any real competition in the first place. And yes there is always, Vachira, Mission, Paya Thai. My uncle had to be treated in the in the Bay of St. Tropez, of all places, where they had only one(!!!) hospital in Gassin covering many more people than Phuket.
Posted by
Anonymous
on
August 31, 2014 11:19
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I am not sure that this is a beneficial move in medical services. Now there is no international hospital competition on Phuket. The prices will inevitably go up. Monopoly is never a good idea.
Posted by Logic on August 28, 2014 07:15