Policy and Business Overview
Srivichai Vejvivat Public Company limited (“Company” or “VIH”) was established in 1993 in order to operate a private hospital business under the name Vichaivej International Hospital Omnoi which is a hospital under Vichaivej International Hospital Group. In 1993 when the Company was established, its registered capital was 200 million Baht with major shareholders and controlling directors being Assoc. Prof. Vichai Vanadurongwan, M.D., Ph.D., FIMS and Ass. Prof. Saisunee Vanadurongwan, M.D., who is founder of the hospital Group.
In 2008, the Company reorganized its structure by purchasing ordinary shares of Saivichai Development Company Limited and Srisakorn Vejavivat Company Limited from the Directors who were former shareholders in order to rearrange the investment structure of the Company that would suit the business operating nature as a hospital Group, with Saivichai Development Company Limited and Srisakorn Vejavivat Company Limited being subsidiary companies.
At the beginning of 2011, Vichaivej International Hospital Group underwent a corporate re-branding to become more modern and be able to reflect the hospital group’s ability in elevating its service potential and undergoing continuous development as well as maintaining consistency with the Company’s vision of wanting to expand its service to reach foreign customers on a wide scale. The hospital group had changed its name from Srivichai Hospital Group to Vichaivej International Hospital Group and underwent logo change as well.
In 2012, the Company registered as listed securities in the SET with total registered capital of 535 million Baht, divided into 535 million ordinary shares valued at 1.00 Baht per share in which the 535 million Baht was paid-up capital.
In 2014, the Company increased its registered capital at 35,666,666 Baht, which led the new registered capital to be 570,666,666 Baht from originally 535,000,000 Baht, by issuing additional 35,666,666 million ordinary shares valued at 1.00 Baht per share in which the 570,665,433 Baht was paid-up capital.
In the same year, BBTV Equity Company Limited bought the Company’s shares at 20% of total shares in the Company which brought about change in the major shareholder group of the Company. The change was executed in order to support expansion of hospital care business and increase the variety of medical service to be more comprehensive in the future.
The Company also purchased shares at 15% of total shares in Mahanakorn Maesod Vejchakarn Company Limited which operates Nakorn Maesod International Hospital, which is regarded as an investment in area with future potential and a formation of business partnership.
In the year 2016, The meeting had approved the entering into the acquisition of asset by the acquisition of The Bangkok Orthopedic Hospital Company Limited’s ordinary shares, in the number of 90,000 shares or equivalent to 100 percent of total registered capital from the existing shareholders, The company had been singed the Share Purchase Agreement relating to the ordinary shares of The Bangkok Orthopedic Hospital Company Limited on 28 June 2016
As of 31 December 2017, the Company has total registered capital of 570,666,666 Baht, divided into 570,666,666 ordinary shares valued at 1.00 Baht per share in which 570,665,433 Baht was paid-up capital.
At present, Vichaivej International Hospital Group runs secondary general hospital business with 4 hospitals within the Group, that is, 1) Vichaivej International Hospital Omnoi; 2) Vichaivej International Hospital Nongkhaem; 3) Vichaivej International Hospital Samutsakorn; and 4) Vichaivej Yeakfaichai, being operated by the Company. The subsidiary companies comprise Srivichai Vejvivat Public Company limited, Saivichai Development Company Limited, Srisakorn Vejavivat Company Limited, and The Bangkok Orthopedic Hospital Company Limited, respectively. In addition, the Company also has another subsidiary company, Srivichai Vocational School Company limited, which operates business under the name Srivichai Vocational School and serves as a training facility for assistant nurses of Vichaivej International Hospital Group. The Company and subsidiary companies operate under the management of Ass. Prof. Saisunee Vanadurongwan, M.D. who is the Chief Executive Officer and Vice Chairman since establishment until today.
The main customer group of Vichaivej International Hospital Group comprises 2 major groups: 1) Non-capitation customer group, namely general individual customers, contract party customers, member customer type, customers under workmen compensation fund program, and foreign customers; and 2) Capitation customer group, namely customers under social security fund program, customers under Universal Health Care Coverage Project, and customers under foreign laborer health insurance project. Moreover, the Company and subsidiaries have outlined the plan for attracting more target customer groups to use the services provided by the hospital group, such as: 1) private companies, factories, educational institutions; 2) life insurance companies; 3) civil servants and their family under Diagnosis-Related Group (DRG) project; and 4) foreign customers residing in Thailand and came as tourist or to work.
Main revenue of Vichaivej International Hospital Group is divided into 2 major categories based on the nature of customers, that is: 1) Non-capitation; and 2) Capitation. For non-capitation revenue, this is made up of non-capitation OPD and non-capitation IPD revenues. Capitation revenue comprises earnings from the services provided to patients under social security program, patients under Universal Health Care Coverage Project, and patients under foreign laborer health insurance project. The ratio of non-capitation revenue to capitation revenue was 74:26 , 76:24, and 77:23 in 2015-2017 respectively. However, revenue of the hospital group is subject to seasonal variation as shown in the quarterly financial statements of 2015-2017.
In terms of operating performance, the Company and subsidiaries achieved total revenue from the hospital group in 2015-2017 equivalent to 1,344.34 million Baht, 1,718.60 million Baht, and 1,962.08 million Baht respectively. The revenue type which has the highest proportion was the revenue from non-capitation IPD, followed by revenue from non-capitation OPD and social security program respectively. In addition, during the same period, the hospital which showed the highest revenue among the hospital group was Vichaivej International Hospital Omnoi, followed by Vichaivej International Hospital Nongkhaem, Vichaivej International Hospital Samutsakorn and Vichaivej Yeakfaichai respectively.
In 2015-2017, the hospital group achieved net profit at 101.64 million Baht, 153.46 million Baht, and 125.68 million Baht respectively, while its operating profit margins were 8.14%, 10.53%, and 7.97% in 2015, 2016, and 2017 respectively. As of 31 December 2017, the Company and subsidiary companies has total assets of 1,814.94 million Baht comprising land, building, and equipment totaling 1,112.43 million Baht. Meanwhile, the hospital group’s total liabilities as of 31 December 2017 was 751.70 million Baht and equity at 1,061.63 million Baht comprising retained earnings of 434.35 million Baht.
However, the hospital business operated by the Company and its subsidiaries may still encounter impact from certain risk factor which the hospital group has recognized the significance of such risk factor and, therefore, set guideline for preventing and solving the problem in manner suitable to each risk type. The Company has placed great emphasis and close attention on management of different risks as per the details mentioned under risk factors.
Each hospital has different unique features in providing services as follows
Vichaivej International Omnoi Hospital provides 24-hour medical service with specialist physicians ready to provide OPD care until midnight, in addition to the different kinds of specialized treatment available, such as Laparoscopic Surgery Center, Orthopedic Center, Urology Center, Brain Center, Cardiology Clinic, Nephrology Center, Endocrinology Clinic, Gastrointestinal Clinic, Pediatric Clinic, Obstetrics and Gynecology clinic, Emergency and Trauma Center, Dental Center, Check - up Center and Anti-aging and Wellness Center. It is the first hospital in Samutsakorn Province and nearby provinces such as Nakhon Pathom, Ratchaburi that has operating rooms under positive pressure system, 100% sterile, dust-free, and moisture-free according to international standards.
Vichaivej International Nongkhaem Hospital has similar clinical services as Vichaivej International Hospital Omnoi, with the Cardiovascular Center at Vichaivej provides modern medical service for every step of treatment since checking initial symptoms of coronal heart disease or heart disease, treatment of heart disease, and recovering the function of the heart by cardiovascular medical specialists (Dr. Wattana Boonsom) and medical specialist team. Moreover, we also provide modern medical devices and CCU, which enable nursing teams and cardiovascular medical specialist to conduct treatment and give advices to patients effectively 24 hours. The hospital also has Child Development Center, Examination and Analysis Center, renowned iSKY Innovative Skin & Laser Surgery Center, Comprehensive Health Check Center, i-SHA Anti-Aging Center, Center of Molecular Genetics and services provided for foreign customers, where marketing has been promoted in several countries in Asia.
Vichaivej International Samutsakorn Hospital also has similar comprehensive clinical service capacity as Vichaivej International Hospital Omnoi and has expertise in the provision of health services offsite such as in the establishment of the private and public sectors and enterprise. Moreover, Vichaivej International Hospital Samutsakorn has a clinic at Mae Sod District, Tak Province that serves Thai and Burmese customers, and has cooperated with partners in the Republic of the Union of Myanmar in examining the health of foreign laborers in Yangon, the Republic of the Union of Myanmar.
Vichaivej Yeakfaichai Hospital In the Midyear of 2016, The Company has invested in Vichaivej Yeakfaichai Hospital by focusing on to develop a treatment for specialty care units due to the location of Vichaivej Yeakfaichai Hospital is closed to Siriraj Hospital. That will cause the doctors of Siriraj Hospital to cure the patients at Sam Yaek Fai Chai. Moreover, there is a construction of the skytrain at Fai Chai junction that will help a convenient transportation to the hospital. Moreover, Vichaivej Yeakfaichai Hospital has a renowned iSKY Innovative Skin & Laser Surgery Center, iSMILE dental clinic, Orthopedic Center, Trauma and Emergency Center, Check - up Center and Fertility Center