Bangkok Chain Hospital (BCH), which operates six Kasemrad hospital branches, plans to invest more than one billion baht over the next three years, mostly in a new international medical centre. The centre, to be located in Central Bangkok for easy access, would cost nearly one billion baht and occupy a plot of 12.5 to 15 rai, big enough to accommodate private rooms for patients and their relatives, parking areas and restaurants. The location is to be decided at the end of this month and construction is scheduled to be completed by 2007.

Dr. Chalerm: serving all patient segments

''The new international medical unit will have modern and high-tech medical instruments and be well-prepared to provide all types of medical services with specific centres for heart diseases, diabetes and brain surgery,'' said Dr Chalerm Harnphanich, the chief executive officer of BCH, an affiliate of SET-listed Land & Houses Plc, the country's largest housing developer.

''The centre will provide tertiary care service for patients transferred from the hospital's existing branches and other hospital partners that are unable to provide the necessary services to their patients.''

Of the six Kasemrad hospitals with a total of 1,620 beds, four are in Bangkok _ Kasemrad Pracha Chuen, Kasemrad Bang Khae, Kasemrad Rattanathibet and Kasemrad Sukhaphiban 3 _ and the other two are Kasemrad Saraburi in Saraburi and Kasemrad Sriburin in Chiang Rai.

All branches reported a net operating profit last year, with the Bang Khae and Pracha Chuen branches posting gains of 32-45% from the previous year.

According to Dr Chalerm, over the next three years, BCH also plans to beef up its presence in Greater Bangkok and in the provinces particularly through the acquisition of existing hospitals in Bangkok's surrounding areas and those located in the central part of the country.

BCH currently has business alliances with more than 60 hospitals and 200 clinics nationwide that refer clients. Dr Chalerm noted that acquisitions might be made through those hospital partners.

''For any investment or acquisition plan, we will use returns and the bottom line as the priority,'' he said. ''We do not take into consideration how big we are or how many branches we have.''

According to Dr Chalerm, financing for the international medical centre and acquisitions would come partly from proceeds from an upcoming initial public offering and through cash flow.

Under the IPO plan, BCH will float 330 million shares, or 34.74% of its capital, by issuing 240 million new shares, 224 million to the public and 16 million to company directors, staff and executives.

Another 90 million shares will be offered on the market by the company's two main shareholders _ Land & Houses (40 million) and the Harnphanich family (50 million).

After the IPO, Land & Houses' 40% stake in BCH will be diluted to 26%, while the holdings of the Harnphanich family will decline to 39% from 60%.

The company's paid-up capital will be increased to 950 million baht and its debt-to-equity ratio will fall to 1:1 or less from about 2:1 now.

BCH expects to raise about one billion baht from the offering. The company has scheduled bookbuilding on Oct 29, with share trading on the Stock Exchange of Thailand to start on Nov 10.

BCH expects its revenue to reach 2.3 billion baht this year, up from 2.02 billion baht last year, 1.75 billion in 2002 and 1.39 billion baht in 2001.

Its net profit was 265.22 million baht last year, 123.6 million in 2002 and 93.42 million in 2001.

Self-paying clients currently make up 61% of the hospital's revenue, with social security cardholders and 30-baht universal coverage customers contributing 39%.

The company has just finalised a plan to purchase a three rai plot worth 120 million baht adjacent to Kasemrad Bang Khae to construct another specialist medical centre, expected to cost around 250 million baht.

It is due to open in early 2006.

''In the future, thanks to the presence of the international medical centre, our services will cover all segments, not only for the 30-baht universal coverage clients but also cash-rich domestic and foreign patients who need superb medical services and treatment,'' he said.