Thailand's healthcare sector faces mounting financial challenges as medical inflation continues to surge, placing a heavier burden on patients and forcing hospitals to adapt their strategies, according to Vimut Holding Hospital Co, a subsidiary of real estate developer Pruksa Holding.
The average annual rate of medical inflation is 10.8%, outpacing general consumer inflation by more than 15 times, said Suvanich Triamchanchoochai, director and cardiologist at Vimut Hospital.
The sharp rise in healthcare costs is driven by several factors: an ageing population requiring more complex treatments, significant investments in advanced medical technology, and fierce competition among private hospitals to recruit highly skilled doctors.
"We are trying to keep medical treatment expenses at a valuable price, helping patients who receive treatment at the hospital," he said.
The Middle East conflict, particularly the Israel-US war on Iran that erupted in late February, also contributed to financial challenges for the healthcare system.
Dr Suvanich said medicine prices have increased, while foreign patients face higher travel expenses and several Middle Eastern countries tightened regulations on state-sponsored medical travel.
Higher healthcare expenses also reduced Thai patients, who have declined by 5-10% compared with before the conflict.
In response to these challenges, Vimut Hospital is reshaping its business model to focus on specialised centres for complex diseases.
The hospital group operates five specialised centres covering heart, lung, bone and joint conditions, gastrointestinal and liver diseases, and breast health. The breast health centre was recently launched to address one of the most pressing concerns among Thai women.
Vimut plans to add four centres under its "Expertise, Experience and Expansion" framework by year-end.
The hospital also aims to expand its patient base by targeting workers within a 3.5-kilometre radius of its facilities, as well as residents of Pruksa's housing projects, which collectively house around 270,000 people.
Foreigners account for 10% of Vimut's patients, primarily from Myanmar, China and expats living in Thailand. The hospital is targeting Indonesian patients given their large population within Southeast Asia, said Dr Suvanich.
Despite the challenges, Vimut Holding Hospital reported strong financial growth, said chief executive Nipat Kulabkaw. In the first quarter of 2026, revenue rose 19% year-on-year to 337 million baht. The hospital expects full-year revenue to increase by 15% to 1.5 billion baht.
In 2025, total revenue grew 7% to 1.3 billion baht, with outpatient services generating 711 million baht and inpatient services contributing 591 million baht.
