Mar. 10--Bangkok Dusit Medical Services (BGH), the country's largest private hospital operator, expects the health-care industry to remain on an upward trend in the face of a poor economy.

BGH president Wallop Adhikomprapa said revenue growth of 8-10 percent was expected this year as it hopes to win more market share.

"Continued focus on volume growth remains our goal, and the strategy is to maintain fees, cut as much fat as possible and improve our services," Mr Wallop said.

He said BGH's goal was supported by statistics that local health-care expenditure is relatively low compared to the region, while the percentage of Thais above age 60 is forecast to expand in line with population growth.

It also hopes its international standard of service and high-tech facilities will continue to attract more foreign patients.

Total patient revenue was 21.28 billion baht in 2008, up 15 percent from 18.48 billion in 2007. Revenue from foreign patients, who make up 36 percent, increased by 19 percent from 2007.

Its highest volume of overseas patients comes from the United Arab Emirates, Japan, the UK and Germany, with the highest growth area the Middle East.

Utilisation of available beds increased from 58 percent of 2,051 beds in 2007 to 66 percent of 2,081 beds last year. BGH operates 19 hospitals across the country.

The major revenue contributors to BGH are its five branches of Bangkok Hospitals nationwide, Samitivej and BNH Medical Centre, which contribute 83 percent of total income.

But its gross margin declined from 44.7 percent in 2007 to 43.9 percent last year, due to a price-freezing policy and rising cost for drugs, supplies and personnel.

Earnings before interest, tax, depreciation and amortisation, excluding non-recurring items, were maintained at 22.9 percent, while its net profit increased 34 percent to 1.66 billion baht.

Capital expenditure was set at 11 percent of its revenue or 2.34 billion baht for financing new projects and asset maintenance.

It expects completion of the 100-bed Royal Phnom Penh hospital in Cambodia by July, and this should support its revenue growth expectation.

Another investment is a 50-bed hospital in Hua Hin currently seeking Environmental Impact Assessment (EIA) approval.

Some investments need to be reviewed, such as a joint investment in the 50-bed Al Ghaith Bangkok Medical Center in Abu Dhabi. Cost control will be implemented in all areas, he said.

"For example, we have pooled our management expenditure among the group. This should cut our costs by 1 percent," Mr Wallop said.

In the past two months, patient volume has reduced by 3 percent from the same period last year, with the international segment reduced by 2 percent.

"We implemented flexible management in order to serve customers better, save on costs and maximise revenue," he said.

BGH shares closed yesterday on the Stock Exchange of Thailand at 17.10 baht, up 50 satang, in trade worth 5.52 million baht.

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