Bumrungrad International, Bumrungrad Hospital's foreign-investment unit, may build a hospital worth 3 billion Hong Kong dollars in the Chinese territory.
CEO Curtis Schroeder said the subsidiary, along with Asia Financial Holdings, had submitted an "expression of interest" to the former British colony's Food and Health Bureau for the construction of a 350-bed private hospital at a Tai Po site. Asia Financial Holdings is one of Bumrungrad International's major shareholders, with a 19.5-per-cent stake.
The Food and Health Bureau last December held an "open house" to announce it would allow the private sector to submit expressions of interest to construct private hospitals at four sites: Tai Po, Tung Chung and Pak Shing Kok.
Schroeder said submission of an expression of interest was only the first step.
The company and its partner did not propose an investment value in the document, but rather only estimated the investment size for the 350-bed hospital at $3 billion, excluding the land cost, which will be announced later by the bureau.
Constructing the 350-bed private hospital would constitute the first phase of the investment. The company might invest in an additional 150 beds in the second phase, Schroeder said.
Bumrungrad International and its partner have not decided where the investment budget will come from.
Schroeder said the Food and Health Bureau would announce the next steps in the construction of private hospitals over the next few months.
He said the health sector was among the six services that the Hong Kong government would focus on this year.
About 80 per cent of the population in the territory access healthcare services at state hospitals, which are thus quite busy.
"We have room to grow in the healthcare industry in Hong Kong. Many Hong Kong people nowadays fly to receive medical treatment in other countries, including Thailand. Bumrungrad International expects to offer advanced medical technology to people in Hong Kong with the expertise of our medical staff," Schroeder said.
At present, Bumrungrad International operates clinics in seven destinations: the UAE, Japan, South Korea, Taiwan, the Philippines, Singapore and Malaysia.
It will invest in other Middle Eastern countries and Hong Kong this year.
Although expecting no near-term impact from the proposal, which is still subject to approval by the Hong Kong government, DBS Vickers Securities (Thailand) is optimistic about Bumrungrad's outlook.
The broker said in a repor that the economic recovery should lift the company's patient volume and strengthen its margin.