Bangkok Chain Hospital's net profit slides 25% to US$8.5m as social security revenues drop

Adjusted payment terms hit its bottomline.

Bangkok Chain Hospital reported a 25% drop in its net profit to US$D8.5m (THB268m) in Q4, dragged by lower revenue from social security office (SSO) patients.

Revenue from SSO patients fell 15% year-on-year due to an absence of revenue from chronic cases after SSO adjusted payment terms, a report by Maybank Kim Eng revealed.

BCH received only 22.5% of SSO’s budget in 4Q18, compared to 80% in 4Q17. BCH also faced higher costs from the opening of KH Ramkhamaeng, which just opened in October.

“The market expects BCH to deliver stronger earnings in FY19 as its base of SSO customers has enlarged following a higher quota from SSO. KH Ram should turn also around this year while BCH’s IVF center at WMC is scheduled to open by July,” the report stated.