On Thursday at 11:08 AM (Bangkok time), the share price of Bangkok Chain Hospital Public Company Limited (SET: BCH) rose by 6.43% or THB 1.10 to THB 18.20, with a trading value of THB 744.77 million.
Chularat Hospital Public Company Limited (SET: CHG) grew by 4.55% or THB 0.12 to THB 2.76, with a trading value of THB 76.88 million.
The rise in BCH and CHG stock prices can be attributed to the proposal from the Private Hospital Association Thailand to the Social Security Office (SSO) to review medical payment adjustments annually and establish an appropriate rate for high-cost diseases, suggesting a minimum rate of 15,000 Baht/RW to support the sustainable operation of private hospitals and alleviate their financial strain.
This came after the emerging worries expressed by the association regarding potential contract terminations between private hospitals and the SSO. This concern arises from the recent 40% reduction in medical payments for high-cost diseases, which decreased from 12,000 Baht/RW to 7,200 Baht/RW. Additionally, the lack of payment adjustments over the past five years has had a direct impact on both private hospitals and the insured individuals.
Following the report, Yuanta Securities stated that the potential implementation of the proposal could support hospitals heavily reliant on revenue from the SSO, particularly those lagging behind larger hospitals. The analyst has recommended an ‘Accumulate’ rating for BCH and CHG, while also anticipating the hospital sector to benefit from the Vayupak Fund.
