Facts & Figures for Healthcare Market in Thailand. Including information on the universal healthcare program, hospitals segment, key trends to impact hospital sector, five force analysis for private hospital, drug market value and medical device market value.

1. THAILAND HEALTHCARE
SECTOR MARKET SNAPSHOT
May 2014
© Canvassco 2014. All Right Reserved

2. © Canvassco 2014
THE UNIVERSAL HEALTHCARE PROGRAM
2
SCHEME TYPE POPULATION COVERAGE FINANCING
SOURCE
BENEFIT
PACKAGES
PURCHASING
RELATION
ACCESS TO
SERVICES
Social Security
Scheme (SSI)
Social
insurance,
compulsory
Private sector
employees,
excluding
dependents
19% Payroll tax
financed,
tripartite
contribution 1.5%
of salary, equally
by employee and
government
Comprehensive:
outpatient, inpatient,
accident and
emergency, high-cost
care, with vary
minimal exclusion list;
exclude prevention
and health proportion
Contract model:
inclusive capitation
for outpatient and
inpatient services
Registered public
and private
competing
contractors
Civil Servant
Medical Benefit
Scheme
(CSMBS)
Fringe
benefit
Government
employees plus
dependants
(parents, spouse
and up to two
children age less
than 20 years
7% General tax, non-
contribution
scheme, mainly
from government
budget
Comprehensive:
slightly higher than
SSS and UCS
Reimbursement
model: fee from
service, direct
disbursement to
public providers for
outpateints;
conventional
diagnosis related
group (DRG) to
inpatients
Free choice of
public providers, no
registration required
Universal
Coverage
Scheme (UCS)
State welfare The rest of (UCS)
population not
covered by SSS
and CSMBS
75% General tax,
mainly from
government
budget
Comprehensive:
similar to SSS
including prevention
and health promotion
for the whole
population
Contract model:
capitation for
outpatients and
global badget plus
DRG for inpatients
Registered
contractor provider,
notably within the
district
Source: Ministry of Public Health, Ministry of Finance, SSO, Complied by MKE-ISR (Maybank)

3. © Canvassco 2014
HOSPITALS SEGMENT IN THAILAND
3
As of 2013, there were 327 hospitals and more than 1,050 public hospitals in Thailand. In term of positioning and
target group hospitals may be categorised into four segments;
Premium Market
Upper-mid tier
market
Mid-tier market
Not-for-profit
hospitals
such as Bumrungrad, Samitivej, Bangkok Hospital and BNH
such as Phyathai, Piyavej, Vejthani, Vibhavadi, Ramkamhaeng and Vichaiyut
such as Paolo, Kasemrad, and Chularat
such as Siriraj, Ramathibodi, and King Chulalongkorn Memorial

4. © Canvassco 2014
MEDICAL CLINIC BY TYPE
4
As of 2013, there were 18,000 clinics in Thailand. About 78% are in up-country and 22% are in Bangkok
Bangkok Up-Country Total
Medical Clinic 1,958 5,130 7,088
Specialised Medical Clinic 212 1,676 1,888
Dental Clinic 1,283 2,113 3,396
Specialised Dental Clinic 4 37 41
Pregnancy Clinic 23 4,302 4,325
Physical Therapy 74 111 185
Healthlab Clinic 66 320 386
Traditional Doctor Clinic 310 335 645
Acupuncture Clinic 32 31 63
General Clinic 87 164 251
Secondary Dental Clinic 10 29 39
Secondary pregnancy Clinic 4 517 521
Total 4,063 14,765 18,828
Source: Ministry of Health Thailand (as of September 2011)

5. © Canvassco 2014
KEY TRENDS IMPACT TO HOSPITAL SECTOR
5
Increased in
min. wages
has lead to
higher
operational
cost for
reusable
products
SHORT-TERM LONG-TERM
HIGHIMPACTLOWIMPACT
Increased in adoption rate of disposable products as a result of
higher operational cost of reusable drape
JCI Standard
AEC 2015Minimum Wage
Medical Tourism
54
157
206
300
1980
1997
2010
2013
Minimum wages
THB per day
(Bangkok)
Source: Ministry of Labour, Thailand
Ease of access of funding => expansion of capacity for private
hospitals => higher purchased volume of disposable drape
JCI accredited hospitals tend to use disposable drape as a
general practice for operational room
Strong growth in Medical Tourism
“The liberalisation of the services
sector under the AEC allows foreign
investors to hold more than a
70% stake in healthcare sector”
With an investment funds to flow
into hospital sector, growth in
expansion of operational capacity
is expected
Thailand’s JCI Accredited Hospitals
• As of 2013, there are 21 hospitals
that have accredited JCI standard
• Disposable drape is not compulsory
under JCI standard however, using
the drapes avoid the complication on
quality control standard
1.0
1.1
1.2
1.3
1.4
1.4
1.4
2.0
2.2
2.5
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Foreign Patients to Thai Hospitals
(Million)

6. © Canvassco 2014
FIVE FORCE ANALYSIS: PRIVATE HOSPITALS
6
Low threat of new entrants
High Investment. For a 200 bed hospital typically costs between THB 6,000 - 8,000 million; in rural areas it could cost about
THB700 - 1,000 million. The start-up operation cost is about THB20 million.
Land availability. Suitable land sites are scare especially in high traffic provinces of Bangkok, Chiang Mai and Hua Hin.
Limited human resources. The next barrier is the availability of qualified and experienced doctors.
Low bargaining power of suppliers
High competition especially for local pharmaceutical manufacturers. (there are over 100 companies in Thailand)
Private hospitals establish their own company to purchase drugs and source medical equipment
Medium bargaining power of buyers
Patient switch hospital choice at a low cost. This is a result of hospitals that offer a wide variety of health insurance packages
and patients are focusing on hospital facilities and special clinics rather than the well-known doctors
High threat of substitute products or services
Patient goes to private hospitals due to more complex treatments being sought and a growing preference for better services
With the UCS now covering 75% of the population, patients can choose to seek treatment in public hospitals
High sector competition
More than 300 private hospitals. The largest 24 hospitals dominate 75% with a combined market share.
Expand medical services such as opening after-hours clinics, Many private hospitals have set up specialised tertiary centers to
provide full medical services and to launch new services with attractive pricing and promotion to compete

7. © Canvassco 2014
MODERN DRUG MANUFACTURERS IN THAILAND
7
Up-Country
78
Bangkok
94
# MODERN DRUG MANUFACTURERS (2013)
Upcountry manufacturers clusters: Samutprakan,
Chonburi, Chacheongsao, Ayuthaya, Pathumthani,
Nonthaburi, Nakhornpatom, Ratchaburi, Lopburi,
Samutsakorn and Lumpoon
Total 172
manufacturers
PRODUCTION VALUE BY TYPE (2010)
TYPE OF DRUG MILLION THB
ALIMENTARY TRACT AND METABOLISM 7,922.02
BLOOD AND BLOOD FORMING ORGANS 2,058.90
CARDIOVASCULAR SYSTEM 2,888.86
DERMATOLOGICALS 2,953.68
GENITO-URINARY SYSTEM AND SEX HORMONES 1,332.07
SYSTEMIC HORMONAL PREPARATIONS 411.42
GENERAL ANTI-INFECTIVES-SYSTEMIC 12,216.79
HOSPITAL SOLUTIONS 2,712.54
ANTINEOPLASTICS 0.19
MUSCULO-SKELETAL SYSTEM 3,907.26
CENTRAL NERVOUS SYSTEM 3,836.95
PARASITOLOGY 449.34
RESPIRATORY SYSTEM 5,738.16
SENSORY ORGANS 380.98
DIAGNOSTIC AGENTS -
VARIOUS 48.11
!TOTAL 46,809.16
Source: Bureau of Drug, Thailand

8. © Canvassco 2014
MODERN DRUG IMPORTERS (2013)
8
THERE ARE TOTAL 655 MODERN DRUG
IMPORTERS (2013
IMPORT VALUE BY TYPE (2010)
TYPE OF DRUG MILLION THB
ALIMENTARY TRACT AND METABOLISM 9,925.30
BLOOD AND BLOOD FORMING ORGANS 12,345.51
CARDIOVASCULAR SYSTEM 10,835.92
DERMATOLOGICALS 1,831.17
GENITO-URINARY SYSTEM AND SEX HORMONES 5,573.81
SYSTEMIC HORMONAL PREPARATIONS 1,081.40
GENERAL ANTI-INFECTIVES-SYSTEMIC 15,074.74
HOSPITAL SOLUTIONS 2,298.96
ANTINEOPLASTICS 12,400.24
MUSCULO-SKELETAL SYSTEM 7,427.41
CENTRAL NERVOUS SYSTEM 8,376.05
PARASITOLOGY 67.15
RESPIRATORY SYSTEM 4,258.04
SENSORY ORGANS 3,325.77
DIAGNOSTIC AGENTS 1,251.23
VARIOUS 577.01
TOTAL 96,649.71
Source: Bureau of Drug, Thailand
COUNTRY MILLION THB
SWITZERLAND 5,254.53
UNITED STATES 4,162.59
GERMANY 3,838.81
FRANCE 3,315.51
UNITED KINGDOM 2,876.67
ITALY 2,869.11
INDIA 2,610.27
JAPAN 2,269.05
CHINA 1,554.32

9. © Canvassco 2014
TOTAL DRUG MARKET VALUE
9
YEAR LOCAL PRODUCTION (THB MILLION) IMPORT (THB MILLION)
HUMAN DRUG ANIMAL DRUG TOTAL HUMAN DRUG ANIMAL DRUG TOTAL
1987 5,146 309 5,455 2,325 478 2,804
1988 6,709 181 6,890 2,571 593 3,164
1989 8,373 224 8,597 3,308 625 3,932
1990 8,886 291 9,177 3,449 870 4,319
1991 9,658 326 9,983 4,216 1,034 5,250
1992 10,697 385 11,082 4,683 1,114 5,797
1993 11,831 276 12,107 5,075 1,145 6,221
1994 12,970 284 13,254 6,087 1,212 7,298
1995 15,821 462 16,283 9,276 1,487 10,764
1996 18,174 473 18,647 10,435 1,628 12,064
1997 19,592 478 20,069 13,376 2,116 15,491
1998 16,726 352 17,078 9,739 2,101 11,840
1999 19,034 687 19,721 14,232 2,487 16,719
2000 20,996 683 21,678 16,700 2,517 19,218
2001 23,088 830 23,918 19,968 2,722 22,690
2002 24,145 542 24,687 19,868 2,902 22,770
2003 26,586 977 27,563 26,025 3,563 29,588
2004 31,708 932 32,640 30,546 3,102 33,647
2005 29,705 1,426 31,131 38,293 3,337 41,631
2006 30,911 1,831 32,745 45,005 3,585 48,589
2007 41,232 1,474 42,706 53,000 3,237 56,237
2008 35,323 1,518 36,841 64,148 3,170 67,318
2009 37,525 2,183 39,708 70,607 4,139 74,746
2010 46,896 1,927 48,823 99,660 7,734 107,394
2011 56,701 3,166 59,867 98,221 7,088 105,309

10. © Canvassco 2014
MEDICAL DEVICE MARKET IN THAILAND
10
2010 2011 2012 %Growth
General supply 9,407 11,363 14,555 24%
Ophthalmology 7,704 8,236 8,630 24%
Diagnostic and Therapeutic
equipment for internal medicine
8,075 10,051 11,327 18%
Dental 1,947 2,525 2,535 14%
Surgery 1,947 721 835 -35%
Laboratory 792 851 1,059 16%
Orthopedic, orthosis and
disability aids
1,890 2,053 2,415 13%
Medical Logistic and patient
ward
412 709 785 38%
Diagnostic imaging and
radiotherapy
3,751 4,067 6,180 28%
General equipment 597 787 1,086 35%
Total 36,522 41,363 49,407 16%
Medical device market in Thailand has
been growing steadily on average of 16%
over the past three years
There are about 500 medical device
importers in Thailand. Most of companies
are owned by Thai with a registered
capital of around THB 1 - 5 million. These
companies are located mainly in Greater
Bangkok Region
There are also several large companies
who carry a wide range of product
portfolio such as Pacific Healthcare,
DKSH, Berli Jucker, 3M and etc
Since the last five years, top three
imported sources are from the U.S.(THB
26,833 mn), Japan (THB 13,411 mn) and,
Germany (THB 6,467 mn)
MARKET STRUCTURE
IMPORTED MEDICAL DEVICE BY TYPE (MILLION THB)
Source: Global Trade Atlas

11. © Canvassco 2014
MEDICAL DEVICE PRODUCTION IN THAILAND
11
2010 2011 2012 %Growth
General supply 48,673 55,384 58,956 10%
Ophthalmology 25,499 26,565 23,792 -3%
Diagnostic and Therapeutic
equipment for internal medicine
8,855 11,185 13,470 23%
Dental 3,610 3,555 3,788 2%
Surgery 26 33 57 48%
Laboratory 44 615 2,189 605%
Orthopedic, orthosis and
disability aids
358 205 207 -24%
Medical Logistic and patient
ward
296 405 439 22%
Diagnostic imaging and
radiotherapy
384 317 278 -15%
General equipment 43 602 2,227 620%
Total 87,788 98,866 105,403 10%
EXPORTED MEDICAL DEVICE BY TYPE (MILLION THB)
Local production for exporting medical
device market continue to grow on
average of 10% over the past three years
There are total about 157 local
manufacturers. About 85% are small
producers with less than THB 50 mn in
registered capital, 21% are mid-size
producers (between 50 - 500 mn in
registered capital) and only about 3% are
the large producers
Medical device is one of the targeted
industry by the Board of Investment,
Thailand to attract investors to set up
production base here
Incentives provided by BOI include tax
exemption for machine, corporate tax
exemption for 8 years and others
MARKET STRUCTURE

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