IFC expands access to affordable and quality health care in Thailand

IFC, a member of the World Bank Group, is investing 909 million Thai baht through private placement of equity shares in Principal Capital Public Company Limited (PRINC), a publicly listed company on the Stock Exchange of Thailand.

IFC’s investment will help PRINC to expand its hospital network to serve middle and lower-middle-income patients in Thailand’s rural and frontier regions, creating jobs and promoting energy-efficient design and construction in the country.

PRINC currently has seven hospitals in its portfolio and is planning to expand its network to 15 to 20 hospitals with a capacity of 1,800 to 2,000 beds within the next five years.

“Strengthening healthcare infrastructure is one of IFC’s strategic priorities in Thailand. IFC’s investment will help PRINC expand access to affordable and quality health care for the middle-income segment by reaching the under-penetrated regions in the country,” said Vikram Kumar, IFC Country Manager for Thailand. “The investment aligns to IFC’s strategy to provide affordable healthcare to the under-served through higher private sector participation.”

With Thailand’s rapidly aging population, health care spending for the elderly is expected to increase from 2.1 percent of GDP in 2010 to 2.8 percent of GDP in 2022. The number of people affected by non-communicable diseases such as heart disease, stroke, cancer, and diabetes is also growing. The number of hospital beds per 1,000 people is 2.1 in Thailand compared to the regional average of 3.6. Further, most of the private sector hospital chains are concentrated in Bangkok and Phuket, catering to higher-income population, expatriates and medical tourists.

IFC is the largest multilateral investor in health care in developing countries, with investments in more than 210 projects in the past two decades totaling $5 billion. IFC investments in the sector are aimed at promoting greater access to affordable and high-quality health care. Health is a growing part of IFC’s advisory services with programs covering quality improvement, investment climate, green building codes for hospitals, and public-private partnerships.

Original source: IFC
Published on 25 November 2019