New medical tourism strategies needed in Thailand?
By Jon Fernquest[Introduction|Article]
[Reading Questions|Answers]
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In today's article experts from the Kasikorn Research Centre, the research arm of Kasikorn bank, discuss medical tourism trends in Thailand.
Reading Questions
Here are some questions to guide your reading (See answers at end):1. Where can private hospitals look for future business opportunities?
2. What factors have contributed to private hospital growth in Thailand?
3. What factors have contributed to the recent surge in medical tourism in Thailand?
4. What is the imbalance in the distribution of private hospital beds in Thailand?
5. What is the key factor behind private hospital location?
6. How do the various provinces rank in terms of private hospital beds?
7. What led to intense competition and finally consolidation among private hospitals?
8. Has the number of private hospitals risen or fallen in Thailand recently?
9. Does a falling number of private hospitals mean a falling number of hospital beds also? (Use inference)
10. What other sources of competition are there in the market for medical tourism besides private hospitals?
11. What industrial areas remain to be exploited in the healthcare market?
12. What tourism destinations are promising for medical tourism investment?
13. What border provinces have medical tourism potential?
(Use inference)
Bangkok Post Article October 24, 2007
Hospitals need new strategies
Opportunities exist in tourist spots, bordersCHAROEN KITTIKANYA
Direct partnerships with hotel chains ultimately benefit end-users, says Mr Cumming.
As competition in Thailand's health-care market intensifies, private hospitals must look for new opportunities in key tourism destinations and border provinces to boost their competitiveness, Kasikorn Research Centre says.
tourist spots, tourist - popular places serving large numbers of tourists (Phuket, Chiang Mai, Koh Samui, Pai, Koh Pi Pi, etc.)
a hotel chain - when a company owns hotels in many locations
end-users - customers
competition intensifies - more companies trying harder to attract limited customers (by lowering price, differentiating product, etc)
tourism destinations - popular places for tourists to travel to
boost - increase
Kasikorn Research Centre - the well-known research organisation of the Thai Kasikorn Bank
Factors Driving Change in the Healthcare Sector
Private hospitals have experienced robust growth over the years due to a rise in patients in line with higher purchasing power among Thais and a surge in foreign medical tourists.
From 2004 to 2006, the number of foreign patients receiving medical treatment in Thai hospitals grew by an average of 12.9% due to the government's efforts to brand Thailand as the medical hub of Asia. Private hospitals spent millions renovating or upgrading facilities, hiring more professionals and investing in advanced medical technology.
They also upgraded medical standards to be on a par with international medical facilities, especially for specialised treatments such as heart and brain surgery, bone joint care, sex change operations and plastic surgery.
Moreover, the cost of medical treatment in Thailand is far cheaper than in hospitals overseas, meaning the number of foreign patients seeking medical care in the country will continue to increase, Kasikorn said.
robust - strong
purchasing power - the goods that your income can purchase (with inflation or exchange rate depreciation this goes down)
foreign medical tourists - people who travel to a foreign country for some combination of tourism and medical treatment
a medical hub - a regional or world center for medical treatment
renovating - repair and improve, put into good condition
upgrading - improved and made up-to-date
be on a par with - to be at the same level (or quality standard) as
medical facilities - buildings and equipment devoted to medical treatment and healthcare
Private Hospitals: Competition and Consolidation
The research centre expects the number of foreign patients in Thailand to rise to roughly 1.54 million at the end of this year, generating about 40 billion baht. It should top two million in 2010.
However, private hospitals are mostly expanding in Bangkok and key economic provinces in which income levels are relatively high.
Thailand has 344 hospitals with 35,806 beds. Of those hospitals, 143 have a bed capacity under 50, 101 operate 51 to 100 beds, and 100 boast more than 100 beds.
Bangkok has 102 private hospitals with combined bed capacity of 15,000, or 43.3% of the country's total beds. On average, the number of patient beds per person equals 1:386 in Bangkok against 1:1,432 in the Central, 1:2,827 in the North, 1:6,938 in the Northeast and 1:3,641 in the South.
According to the research house, private hospitals are focused on the same target markets, resulting in high competition and industry consolidation.
Kasikorn noted that the number of private hospitals nationwide fell from 456 in 2000 to 405 in 2002, 354 in 2004 and 344 in 2006.
boast - can claim an achievement of
a research house - a part of a larger company or organisation that specialises in doing research
International Competition
Stiff competition is not limited to private hospitals. State-owned hospitals and foreign competitors such as Singapore, Malaysia and India have also been striving to attract foreign patients.
Kasikorn Research recommended that private hospitals aiming for the local market invest in provinces dominated by Thais. It also said foreign investors should have exposure in industrial estates in Chachoengsao, Prachin Buri, Chon Buri, Rayong, Samut Prakan, Samut Sakhon, Ayutthaya, Lamphun, Khon Kaen, and Nakhon Ratchasima.
For hospitals geared toward foreign patients, the research centre said they should tap into key tourism spots, including Chiang Mai, Phuket, Chon Buri, Samui in Surat Thani and Hua Hin in Prachuap Khiri Khan.
Apart from being short-term tourism destinations, those provinces also attract a lot of foreigners to buy or rent real estate such as high-priced condominiums and luxury resorts.
Kasikorn Research Centre also suggested that private hospitals closely watch the potential of provinces bordering Cambodia, Laos, Burma and Vietnam. Transport to those countries has improved and their economies are growing, it said.
stiff competition - severe competition
have exposure in - have part of their investment in
geared toward - designed for
tap into - make use of a resource
closely watch - watch developments and look for business opportunities
Answer Key:
1. Where can private hospitals look for future business opportunities?
a. Partnerships with hotel chains.
b. Expansion to tourism destinations and border provinces.
2. What factors have contributed to private hospital growth in Thailand?
a. Rise in Thai patients as their purchasing power has risen.
b. A surge in foreign medical tourists.
3. What factors have contributed to the recent surge in medical tourism in Thailand?
a. Thai government promotion and branding of Thailand as a medical hub for Asia.
b. Upgrades in the standards of medical facilities.
c. Improved facilities for specialised treatments such as heart and brain surgery, bone joint care, sex change operations and plastic surgery.
d. Much lower medical care costs in Thailand than other competing countries.
4. What is the imbalance in the distribution of private hospital beds in Thailand?
A disproportionate number of private hospital beds are in Bangkok (43%) compared to all other provinces combined (57%).
5. What is the key factor behind private hospital location?
Private hospitals are located in provinces and cities with high income levels.
6. How do the various provinces rank in terms of private hospital beds?
In terms of population per private hospital patient bed:
1. 386 in Bangkok.
2. 1,432 in the Central.
3. 2,827 in the North.
4. 3,641 in the South.
5. 6,938 in the Northeast.
7. What led to intense competition and finally consolidation among private hospitals?
The fact that private hospitals were all focusing on the same high income target markets.
8. Has the number of private hospitals risen or fallen in Thailand recently?
Fallen.
9. Does a falling number of private hospitals mean a falling number of hospital beds also? (Use inference)
No, not necessarily. With consolidation, there could be an increasing number of beds but a decreasing number of hospitals.
The article states that private hospitals are expanding and that private hospitals have experienced growth over the years.
10. What other sources of competition are there in the market for medical tourism besides private hospitals?
a. State-owned hospitals in Thailand.
b. Hospitals in other countries such as Singapore, Malaysia, and India
11. What industrial areas remain to be exploited in the healthcare market?
Chachoengsao, Prachin Buri, Chon Buri, Rayong, Samut Prakan, Samut Sakhon, Ayutthaya, Lamphun, Khon Kaen, and Nakhon Ratchasima.
12. What tourism destinations are promising for medical tourism investment?
Chiang Mai, Phuket, Chon Buri, Samui in Surat Thani and Hua Hin in Prachuap Khiri Khan.
13. What border provinces have medical tourism potential?
(Use inference)
Provinces bordering Cambodia (Prachinburi, Surin), Laos (Udonthani, Nongkhai, Muktahan), Burma (Chiang Rai, Maesot) and Vietnam.
