BCH’s FY24 revenue guidance down to mid-single-digit YoY growth

One key factor is the SSO’s reduction in medical service fees for complex treatments.

Bangkok Chain Hospital (BCH) has lowered its FY24 revenue guidance, now expecting mid-single-digit year-on-year (YoY) growth, down from the previously forecasted double-digit growth.

According to a UOB Kay Hian report, this adjustment was announced during the second quarter (Q2) analyst meeting, with management citing multiple challenges.

Key factors contributing to the revised outlook include sluggish growth in Social Security Office (SSO) registrations, the absence of Kuwaiti patients, and the SSO’s reduction in medical service fees for complex treatments.

The SSO cut the reimbursement for these treatments from $356 (Bt12k) per patient to $213.3 (Bt7.2k), leading to a negative impact of $2.4m (Bt81m) in Q2.

“BCH’s FY24 target for Social Security registered persons at 40,000 is now unlikely to be achieved as the year-to-date (YTD) number stands at only 5,000,” the report said.

In line with this, the company is expected to revise its FY24 target downward.

Bt1 = $0.030