CHAPTER II DATA
2.1 CHG Business Structure
CHAPTER II
Figure 2.2 Revenue Structure
Figure 2.3 Cost Structure
100% 100% 100%
65% 66% 66%
13% 13% 13%
2 0 1 3 2 0 1 4 2 0 1 5
CO ST & E XPE N SES
REVENUES COST SG&A
Figure 2.4 ROA & ROE Trend
Table 2.1 TOP 3 Major Shareholders 18.3%
15.4% 15.8%
22.1%
17.7% 18.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2013 2014 2015
ROA & ROE
ROA ROE
Figure 2.5 Organization Chart
2 .2 SWOT Ana lys is
Figure 2.6 SWOT Analysis
Strength:
1. CHGis one oftheleading private hospitalinthe eastern zone of Thai- land with 13 medical stationsinthetarget area. 3 medical stations are accredited by Thai Hospital Accreditation – HA and Chularat 3 hospital has been accredited by JCI from USA. Chularat has hightechnologyto cover a wide area of medical services with clini- cal expertise such as Hand Microsurgery, stroke center, Skin center and cosmetics sur- gery with VASERtechnology, Open Heart Surgery advanced intechnology with Car- diac Electrophysiology Lab and Enhanced External Counter Pulsation (EECP).
2. Strong brand awareness: Chularat has competitive priceforlowto middle income people whois seeking for qualitied medical serviceswhich arethe major popu- lation of Thailand. Thelocationis well consistent withthe company’s strategy. It allows
Strenght
1. Locationis near residential area andindustrial estate. Accessto patientsis effective.
2. Diversifyits revenue from 4types of patients -OPD,IPD, SSO and NHSO
3. CHG has effective cost control and offer competitive medical services price.
4. CHG has been accredited by JCI -the world class medical accreditation.
Weakness
1. Shortage of medical persons such as doctors, physucuan and nurseisthe primary concern when expanding business
2.Income from government scheme patient - SSO may not be ableto cover cost of medical servicesin some case.
3. The hospital needsto negotiate with Social Security Office for additional claims via AdjRw
Opportunities
1. Aging populationin Thailand has beenin uptrend. Within 2022, people whose ageis over 60 years old will be 19% out oftotal population. 2. Helath awareness has beenintrendfrom young peopleto Adult.
3. Thailand's healthcare expenses per GDP has still beenlow comparedto developed countries 4. Medical servicesin Thailandis still not expensive comparedto other countries.
Threats
1. Many competitors with strong network are inthis highly competitive business and CHG's market shareis onlyinthe middle rank. 2. Risk ofincreasingin SSO patients whose marginislow among other patients.
3. Thai economy has not been good as now. It will effectthe value of money and purchasing power of people.
for easy access to medical stations because all places are located near residential zones including industrial zones with higher population such as Rojana, Hi-tech, Gateway and 304. In the near future, there would be more people moving into these zones following economic growth. CHG operates through policy which can satisfy all type of patients.
Patients could easily access hospitals or clinics with satisfied price and high qualitied services. They could be in people’s mind.
3. Good Management: CHG diversifies revenue to many groups of patient such as general, SSO, NHSO and contract. Cost control is very effective resulting to constant cost of services over time. For example, Drugs are provided based on auction and direct purchase which by an auction, the company will offer contract to purchase to the company who win the auction with the best offer.
4. CHG main focuses in consumer’s needs and satisfaction, service quality and competitive service price are the key to keep growing.
Opportunity:
1. Population aging, Thailand’s aging population has been in uptrend.
Within 2017, Thailand will have older people up to 15% of total population, and 19%
in 2022. The trend in medical expenses per head would be increasing in the future. Cur- rently, health awareness has been increasing among adult people.
2. AEC support, as Thailand’s government policy as medical hub, medical tourists and AEC population will seek to find qualitied medical services with acceptable price. Since we are in the center of ASEAN with geographic advantage, there are high possibilities that Thailand would be one of the destination for healthy foreign people.
3. Cheaper medical service price, medical price in Thailand is still cheaper compared to other developed countries. Healthcare industry can grow sustainably.
Moreover, Thai healthcare expenses per GDP is still low compared to other countries.
4. Although the company focuses on domestic patients, the company has been improving their special expertise with high technology equipment. Foreign people
can access the hospital within 10 km from Suvarnabhumi airport. They can rely on CHG’s high quality of medical services.
Weakness:
1. Due to high cost of medical operation, high expenses on doctors’ salary and being lack of doctors in the industry, these factors could slow the growth of CHG’s business plan and operation. BDMS and its subsidiaries could have power to attract CHG’s medical persons and leave the company.
2.SSO patients in some cases contains high cost of services but the revenue to hospital is fixed by Social Security Organization.
Threat:
1. World economy including Thai economy has not been growing as ex- pected. It can reduce purchasing power of people to buy medicine from pharmaceutical shops themselves rather than going to medical clinics or hospitals.
2. Many competitors with strong network are targeting the same group as the company does.