Thailand Hospitals Poised for Further Expansion

Key Growth Drivers

  • Stronger Financial Position
    Hospitals have bolstered cash reserves over the past three years, fueled by revenues from Covid-19 treatment and vaccination programs. This liquidity has helped repay debts and finance expansion projects.
  • Medical Tourism Boost
    Ongoing geopolitical conflicts—such as in Myanmar and Russia—are driving foreign residents and tourists to Thailand for long-term stays and medical services, supporting sector growth.
    • Restoration of diplomatic ties with Saudi Arabia since 2022 has increased arrivals from the Middle East.
    • Chinese and Indian visitors also contribute to medical tourism growth.
  • Expansion into High-Intensity Care
    Hospitals are growing capacity in advanced medical areas, such as cancer treatment and stroke care, which represent higher revenue opportunities.
    • Cancer is the leading cause of death in Thailand, and patient numbers have risen steadily over the last decade.
    • Mid-tier hospitals are launching new cancer treatment centers and investing in technology upgrades and equipment.
  • Diversification into High-Value, Low-Intensity Services
    Growth is also expected in wellness, aesthetics, and other higher-ticket services that complement core hospital offerings.

Forecasts & Sector Outlook

  • The number of operational hospital beds in tracked hospital groups is expected to grow by 18%, reaching nearly 11,000 by 2028.
  • Revenue growth for the sector is projected at a 7.8% CAGR from 2023 to 2028.

Supporting Factors

  • Demographics
    Thailand has the second-highest proportion of people over 65 in Southeast Asia, behind Singapore, fueling demand for healthcare.
  • Social Security and Reimbursement Policies
    The Social Security Office reimburses some private hospitals for critical disease treatments (e.g., stroke, breast cancer), incentivizing hospitals to expand these services.
  • Growing Pool of Medical Specialists
    The number of new medical specialist certificates increased from 2,400 in 2017 to over 3,000 in 2022, enhancing the country’s ability to provide complex treatments.
  • Tourism and Leisure Synergies
    Thailand’s status as a top tourist destination encourages medical travelers and companions to combine healthcare with leisure activities, boosting overall hospital revenues.