Evaluate private hospital business in 2024, generating income of 322 billion baht

Bangkok, ttb analytics assesses the private hospital business in 2024, generating revenue of 322 billion baht, based on challenges from limitations that are likely to face saturation point. The TTB Economic Analysis Center or ttb analytics assesses the private hospital business in 2024 to generate revenues of 322 billion baht based on challenges that are beginning to face limitations from declining population trends. and the concept of using services has changed from treatment to prevention. To reduce the risk of receiving services in the hospital As a result, the business model of private hospitals is different from before. The private hospital business is a business that has grown exponentially over the past 10 years due to the increasing population structure and illness rates. Including legal regulations that require entrepreneurs to register their employees as insured. As a result, the hospital has additional income from the social security system of 13.7 million insured persons with medical treatment r ights, including group insurance benefits provided by private companies to employees in the amount of more than 2.6 million policies, in addition to the dimension of The amount of demand has increased recently. The hospital business is a service business group that is not sensitive to price and income. Since it is a service business that is necessary and cannot be replaced in terms of quality and duration of treatment. As a result, private hospital businesses have the power to easily pass on service prices. As a result, private hospital service fees have continued to increase in the past period. As a result, the market value of the private hospital business can continue to expand. TTB Analytics estimates that in 2024, the private hospital business will have a high total income reaching 322 billion baht, expanding 4% from 2023 with a total income of 314 billion baht. baht However, when considering starting in 2022, the private hospital business has recovered and received positive results from the COVID-19 cri sis. Revenue grew by 29%. In 2023, the private hospital business began to see signs of growth that were more limited than in the past. This is partly due to the unique characteristics of the demand for service users in private hospitals that are unpredictable. (Unpredictable Demand) or in other words, Services will be used when sick. As a result, it requires a large population growth rate to be able to create the number of patients at the desired rate on the condition that the hospital admission rate is constant. Be alert to higher health care to avoid illness due to awareness of high medical costs compared to income. Even though they have the right to medical expenses from health insurance, it is still found that Many times, service users still have to pay excess amounts of treatment costs. As a result, the rate of hospital admissions in the future may tend to decrease. As a result, the private hospital business as a whole began to face challenges. The growth of private hospitals will be in a K-Shape, divide d into groups as follows: The group that continues to maintain good growth rates is private hospitals that focus on foreign customers, whose revenue in 2023 can still expand by approximately 15.3% from the ability to expand the market to increase the number of people receiving services from the quality of treatment. High Quality Medical Service at an Affordable Price: Countries in the Middle East where Thailand has the advantage of lower prices when compared with the same or higher quality. Including high-income demand groups in the ASEAN region, such as Cambodia, Myanmar, Laos, where Thailand has an advantage in the quality of the public health system with higher standards. Groups that are beginning to face limitations in expansion are private hospitals that focus on Thai customers. with total revenue decreasing 18.3% in 2023, beginning to face limitations from a decreased number of outpatients. According to the survey report, visits to hospitals and private clinics in 2022 had a number of outpatients of 58.5 million compared to 58.8 million. in 2017, together with considering the context that the Thai population is entering a period of decline. As a result, the amount of demand from service users has begun to have limitations in expanding. In the past period, medical expenses have increased in proportion to a higher proportion than the increase in income. Pressure to change the behavior of the new generation who are more health conscious to reduce the risk of various diseases in the long term. Therefore, in the situation where the demand for services in the country that receives medical care tends to decrease. Including in the foreign user market, there is still room for expansion, whether from the number of users and prices that are still increasing from comparative prices that are still lower than the country of origin in some countries. But in the long run, growth depends on the context in which foreign markets are beginning to reach saturation. Traditional medical care may begin to face limitations, whi ch ttb analytics is of the opinion that starting from 2024, it will be the beginning of a changing business model of private hospital groups in various forms as follows. 1) Using technology to increase service utilization rates due to the current income structure of private hospital groups. Part of this comes from the health insurance system, such as group insurance with a number of policies as high as 2.6 million. According to statistics, people with group insurance visit hospitals on average 5.7 times per year. However, using hospital services even without having to pay medical expenses. Instead, there are other hidden costs such as travel expenses and leave of absence that may affect the results of performance evaluations each year. As a result, sometimes service recipients with minor illnesses may choose not to receive service. Even though they have the right to receive treatment As a result, the use of technology such as Telemedicine can increase the frequency of services even though there may not be an increase in the number of service recipients. 2) Increasing the specific needs of medical services To reduce limitations on the unpredictable demand of service users. (Unpredictable Demand) in creating special needs (Special Needs) to receive medical services, for example in hospitals and specialized clinics such as therapy, beauty treatments. or even the trend to avoid illness with preventive medicine (Preventive Care) where income grows at an accelerating rate with a 3-year historical average of 30.2%, with projected income in 2024 at approximately 42 billion baht from Able to respond to specific needs in addition to receiving services for treatment purposes with a low frequency of service use and limitations in marketing due to the inability to predict service use. 3) Focusing on generating recurring income in order to create a revenue base that can grow regularly from predictable demand by adding special needs to change the perspective from the original when receiving services to Treatment (Treatment) into a contemporary perspective that receives services in the form of preventive medicine (Preventive Care), resulting in new service formats with a higher frequency, such as regenerative medicine. health services or dietary supplement group Including the expansion of service formats in the elderly care business that answers the problems of Thailand which is about to enter a fully aging society (Super Aged Society) in the context of smaller families, which is an additional factor supporting the elderly care business. The elderly have a direction that can continue to expand. Source: Thai News Agency