AR 2012 - Bumrungrad International Hospital | Bangkok Thailand

102 Pages·2013·2.11 MB·English

Bumrungrad Hospital Public Company Limited
Building
for the future
Annual Report 2012

CONTENTS
Message from the Chairman 4
Message from the Corporate CEO 5
Building for the future 7
Directors and Senior Executives 18

Financial Information 19
Financial Highlights 20
Management Discussion & Analysis 21
Report of the Audit Committee 25
Report of the Accountability of the Board of
Directors to the Company’s Financial Reports 26
Financial Statements 27

Other Information 63
Corporate Governance Report 93
Message from the Chairman
T he healthcare sector in Asia has attracted a lot
of positive attention from investors recently. It is
easy to see why. An aging world requires more
medical attention and rising incomes afford more
advanced treatment. Asian healthcare providers appear
to enjoy structural and cultural advantages over their
Western counterparts in satisfying this rising demand
profitably.
Still, even a hospital in Asia cannot be complacent. Like
every other organization, it must change to succeed.
This year’s profits buy no guarantee of next year’s. The
people and facilities that got you to where you are have
to be led and transformed to match a changing world.
In last year’s annual report we wrote about our strategy
of serving more patients, both Thai and international, Growth is adding more good doctors. Transformation
with doctors and facilities in Thailand. That strategy involves searching through hundreds of CV’s and using
requires ambitious plans to recruit doctors and expand professional networks to find Thai doctors learning
capacity – plans which progressed substantively in advanced techniques overseas. In this way, we add
2012. We purchased two significant plots of land close excellent doctors – and equip them with new tech-
to the current campus. We prepared the remaining nology – to enhance the hospital’s capabilities in
floors of our clinic building for opening in early 2013 and emerging medical disciplines such as electrophysiology,
began the conversion of back office space to more endoscopic spine surgery, and functional medicine.
inpatient rooms. We recruited 106 more doctors and
Bumrungrad has benefited from healthcare becoming
added 799 nurses, managers, and support staff.
global. It is truly a global healthcare player, recognized
Summarizing our strategy with words like “growth” and by investors, medical professionals, and the accreditors
“capacity,” though, doesn’t completely describe the and media who represent patient interests. Playing on
transformations we have in mind. a world stage requires not only meeting high standards
today, but building for tomorrow. I would like to personally
Growth is adding space. Transformation is designing
thank the doctors, nurses, managers and staff who do
configurations to support new medical processes –
the hard work daily to transform us for the future.
such as larger operating theatres, to accommodate

surgical robots. Or electronically-equipped meeting

rooms to allow teleconferencing between our doctors

and those at other hospitals.

Growth is hiring people.Transformation is a new

approach to human resource development that includes

establishing a branch of one of the most successful
Mr. Chai Sophonpanich
language and training companies in Thailand, within our
hospital offices, for full time use by our staff. Chairman
4
Message from the Corporate CEO
I n 2011 the Company refocused on serving local and
international patients from its base in Thailand,
where it enjoys a unique combination of competitive
advantages. Those advantages include a supply of
world-class doctors; long experience serving diverse
patient nationalities; and a customer-driven medical
system which allows us to deliver excellent care and value.
These strengths produced reliable results even when flu
scares, political instability or floods intervened. In 2012,
when our business was unencumbered by adverse
external factors, we saw good results in virtually every
key measure. Patient volumes from both local and
international market segments grew to a combined high
of nearly 1.2 million admissions and outpatient visits.
Revenue rose 17% to reach a record 13.3 billion baht. brands, both public and private, extend their services
EBITDA margin increased to 25.3%, yielding record and networks. To attract new patients we will have to
earnings of 3.3 billion baht. Combined with the gain on extend our access points and add new service lines.
our sale of KH shares, the Company recorded net profit
International patients will find the top medical des-
of 2.67 billion baht – another record high.
tinations in Europe, North America and Australia either
These results allow us to continue investing in the future. harder to access or increasingly more expensive. But
they will also find accredited hospitals serving inter-
What will that future look like? In both our local and
international markets, Bumrungrad attracts a select national patients in countries closer to home. Our
attainment of JCI standards will differentiate us less. Our
group of customers willing to commit financial re-
culture of continuous improvement in quality, processes,
sources and time to travel for the best possible care.
and patient satisfaction will become more important.
These consumers will continue to exist as long as life is
important. What will change are the types of treatment Finally, the patients of the future will use new sources
they travel for, the destinations they can choose from, of information to help make their choices. Many will
and the information they use to make their choices. use websites to learn about hospitals, doctors, and the
opinions of other patients. They will request appointments
New treatments will emerge for serious diseases. As a
and health information on their mobile devices.
global hospital, we must acquire the technology and
training to master these treatments. This is why we The challenge for Bumrungrad will be to manage these
subscribe to medical intelligence services and send complicated changes in medical science, healthcare
teams to visit innovative centers of excellence around delivery and communication channels while keeping
the world. Our Spine Institute brought the latest surgical things simple for our patients. Healthcare in the most
techniques from Germany to Thailand. Our new Joint developed countries is characterized by layers of players
Replacement Center will offer patients the benefits of who add complexity and subtract value. Patients, they
protocols and technologies perfected at the University just want good doctors; caring nurses; and a pleasant,
of Southern California. modern, and safe environment in which to heal.

In the future, people will not only seek advanced

treatment to cure disease, but also to prevent it. The

patient relationship may begin with health screening,

preventative medicine, or genetic screening. Patients Mr. Dennis Brown
will also have more choices as successful Thai hospital Corporate CEO
5
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Building
for the future
T he story of Bumrungrad is a story of
transformations.
Twenty years ago the hospital began a transformation
from a small but admired Thai hospital into the largest,
most modern private medical center in Southeast Asia.
Ten years ago, it was the first internationally-accredited
hospital in Asia and was transforming itself into a
leading medical tourism destination.
Today, Bumrungrad is again building for the future, with
ambitious expansion plans that will leverage its strengths
in medical expertise and customer service. A new
transformation will meet the rapidly growing health care
needs of Thailand and Asia with a combination of tech-
nology, innovation, experience and compassion. This
transformation is already underway.
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Growing
our team
of outstanding doctors
B umrungrad’s success rests first and foremost on its
team of outstanding doctors. The hospital measures
physician satisfaction and works hard to create an ideal
practice environment. Doctors whose training and experience
meet rigorous Bumrungrad selection criteria get to work
in a scientific system of patient safety and process
improvement. Their colleagues are a virtual dream team of
top specialists. They are supported by modern technology
and experienced staff so they can focus on their patients.
During the past year the hospital’s reputation and recruiting
program attracted over 100 impressive specialists,
including doctors returning to Thailand after advanced
training overseas. They will allow Bumrungrad to increase
patient capacity, reduce waiting times for high-demand
services, and expand its expertise to include new
medical sub-specialties and emerging fields.
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Bumrungrad now
employs more than
1,200 outstanding
doctors.
We expanded patient
capacity, shortened
waiting times, and
added expertise in
important and emerging
specialties.
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VMAT technology
represents a major
step forward for
cancer treatment.
Investing
in
new technology
B umrungrad continues to invest significant capital in
hi-tech equipment and leading-edge technologies.
These investments aim to fight disease more effectively,
boost capacity and increase operational efficiency.
In 2013 Bumrungrad will become the first hospital in
Thailand to offer Volumetric Modulated Arc Therapy (VMAT)
for patients battling cancer. VMAT delivers high doses of
radiation to target tumors with greater precision, shortening
treatment and reducing damage to surrounding tissue.
The hospital has also installed a MAKO surgical robot
that helps align hip and knee replacements more precisely.
It is part of a new approach to joint replacements based on
Bumrungrad’s study of a famous orthopaedic center
in California.
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