Thonburi Hospital Group (THG) has expanded its presence in China through an US$800-million joint investment with two Chinese firms for hospital development and medical equipment production.
Chairman and founder Boon Vanasin told the Bangkok Post that THG and a local Chinese company reached an agreement last week in another joint investment, building a 150-bed hospital worth $800 million in Weihai in eastern China's coastal province of Shandong.
With various partners from 2013-14, THG entered into hospital joint ventures in Nanjing, Hangzhou, Hainan and Kunming for a total investment in the period of 70 billion baht.
But Mr Boon said under its new strategy, the company would find a local partner for each part of China in order to expand nationwide more effectively and rapidly.
"China has a lot of potential. Our main target, the middle-income segment, is growing rapidly. Demand for high-quality medical care is huge, but the medical and healthcare market remains in an early stage of development," he said.
"We are keen on either greenfield or existing projects but prefer a medium size of 150-200 beds to a large size of 300 or more."
THG recently joined with Chinese medical equipment maker Weto Group in a $200-million investment to serve demand in China and Southeast Asia.
"Similar to hospitals, the medical equipment market is growing quickly, both there and in Asean," Mr Boon said.
"THG sees an opportunity to become a regional provider of medical solutions."
However, Mr Boon said the medical equipment deal was an unexpected opportunity, so THG had to double this year's mergers and acquisitions budget to 10 billion baht.
Over the next five years, the company expects to acquire 10-20 hospitals.
THG is the third-largest private hospital group in Thailand, with 3,000 beds in 18 hospitals nationwide plus four hospitals abroad.
Apart from China, THG is also set to expand its hospital portfolio in Cambodia, Laos, Vietnam, Myanmar and China. Last year, THG invested in three hospitals in Myanmar, in Yangon, Mandalay and Tantabin, for a total of 450 beds.
Mr Boon expects a stock market listing in next year's second quarter.