CGH, formerly known as Central General Hospital Group, plans to spend at least 1 billion baht over the next three years to expand and invest in medical facilities. The move is part of efforts to capitalise on growing demand from domestic and international markets.
The group owns and operates three hospitals in northern Bangkok: CGH Phaholyothin, CGH Saimai and CGH Saimai Klong 8, consisting of 244 beds and including special medical centres.
Chief operating officer Ploy Vongkusolkit said the group will invest 700 million baht to expand CGH Saimai Klong 8 Hospital. Construction of a new building is expected to start this year and be completed by 2020.
The group also plans to renovate and add medical facilities at CGH Phaholyothin Hospital, after buying a small plot in front of the building for 50 million baht.
The remaining budget will go to renovations, internal management, a new kidney care centre at CGH Saimai Hospital and hiring more doctors and nurses.
Ms Ploy said the overall medical and health care business in Thailand will continue to grow by 6-7% this year, thanks to the government's endorsement of additional medical welfare subsidies several years ago. The growing number of people concerned about their health and getting medical treatment has also provided a boon to the industry.
Treatment costs in Thailand are much lower than in some other regional countries, such as Singapore, attracting many foreign medical tourists.
Ms Ploy said the mid-scale medical segment should grow by 10-15% this year, while the high-end segment will increase in a range of 15-20%.
But that growth will create further challenges for the industry, with competition set to heat up -- especially in northern Bangkok, where seven major hospitals are located.
"We plan to take three years to transform our hospitals, making them modern facilities with greater capabilities, before entering into our fourth decade in 2020," Ms Ploy said.
That modernisation is also intended to make the company's hospitals more competitive and meet rising demand at home and abroad, she said.
Under the three-year transformation plan, which began this year, the company introduced a new name, CGH. It will soon begin working on renovations, internal management, and IT and human resources upgrades.
"Changing the name will avoid misunderstandings among foreign patients, as they may think we are a public hospital," Ms Ploy said.
In the near future, more special centres will be added at CGH Phaholyothin, such as a knee operation centre, healthcare/wellness centre and childcare centre. The group is also considering other additions, including a dental clinic and community mall.
For CGH Saimai Klong 8 Hospital, the group will shift focus to providing medical treatment for people carrying social security cards. The group will transfer social security members at CGH Saimai to CGH Saimai Klong 8.
CGH took in 1.3 billion baht in revenue last year and aims to increase that figure to 1.5 billion this year and 2 billion by 2020.
The hospitals have become popular among foreign patients, notably those from China, Myanmar, Laos and Cambodia. The group plans to conduct roadshows abroad, in line with its goal of raising the portion of foreign patients to 20% this year from 15% last year.