2. Business profiles

Background

1984-1987: A group of physicians from Phra Mongkutklao Hospital and
Rajvithi Hospital

jointly established “Vibhavadi Kanphaet Company Limited” to engage in a

hospital So, the group purchased Siam Windsurfing Selling Tours Co.,
Ltd., a company that was set up on March 14, 1978, and changed its name
to “Vibhavadi Medical Center Company Limited. The company then purchased
land and accepted a transfer of rights and privileges under a promotion
Certificate of Vibhavadi Kanphaet Company Limited. It constructed a
9-storey hospital building for 175 beds. The hospital, which included 15
OPD examination rooms, commenced operation on March 1, 1986. It
gradually opened other departments till It could provide a complete
range of medical service in 1987.

Major changes and development

1987-1989: The company purchased additional land in 1987 and 1988 for
use as additional

parking areas adequate for serving users of service. The company bought
other medical instruments and equipment besides installing computer
systems for various departments to cope with the expansion of the
hospital. By the time the hospital was established, the “Vibhavadi
hospital Foundation” was also founded The objective is to collect from
donations to support emergency poor patients and for social welfare.

1994: The company opened Vibhavadi Building 2 to accommodate the
increasing

number of patients and the number of beds was raised to 350. The
hospital then

had capacity for 1,000-1,500 out-patients.

1994-1996: The hospital opened gradually various specialized treatment
centers as follows:

Accident and Emergency Center Computer X-Ray Center, Gallstone Treatment
Center, Dental Center, Infertile Clinic, Check-up unit , Geriatric
Clinic, Nursing Home, Cardiology Clinic, Accupuncture Clinic and Fitness
Center.

1998: The company implemented Social Service Project, Saving Energy
Project and the

company was awarded the prized from. Ministry of Science, Technology and
Environment, Hospital Accreditation and ISO 9002 Project.

1999: The company was awarded the ISO 9002 Certificate from SGS Thailand
Co., Ltd. So far, a lot of services have been improved, and the hospital
is now ready for

hospital accreditation (HA).

2000: The company started the hospital accreditation project, which will
involve the setting of a work performance standard and the creation of
an ongoing quality audit and development system in which the hospital
will assess itself and an organization from outside will assess it in
accordance with the prescribed standard frame, which will result in the
society having confidence that the hospital has a trustworthy working
system; the patients and relatives receive quality services and do not
run the risk of care not up to standard. The implementation of the
project is in process of making a medical organization construction and
is expected to be completed for application for receipt of a
certification inspection by the year 2002.

However, the company still maintains the quality of the provision of its
services according to the ISO 9002 system continuously, in which working
is audited for efficiency every 6 months according to the criteria and
the standard ISO 9002.

Services

A.  Outpatient Department:

  (1) General medicines (2) General & micro-surgery

  (3) Obstetrics & Gynecology (4) Pediatrics

  (5) Dermatology (6) Ears, throat & nose

  (7) Osteopathy (8) Ophthalmology

  (9) Physiotherapy (10) Dental clinic

Special services:

1.  Check-up clinic

2.  Answering health problems on Telephone & Internet

3.  Elderly clinic

4.  Lithotomy clinic

5.  Laser surgery

6.  Acupuncture clinic

7.  Fertility clinic

8.  Family clinic

  B. Inpatient Department

  (1) Operating room (2) Child delivery room

  (3) ICU/CCU (4) VIP room

  (5) Deluxe room (6) Special single room

  (7) Double room (8) Common room

The hospital emphasizes on service to attract varieties of consumers,
aiming at their most convenient and needs . These include :

- Foreigner Service Department

- Aged Nursing Home

- Vibhavadi Home Care

- Emergency Elderly Care

- Ambulance Service

C. Out - Patient Agreement

At present time, clients about 1,000 companies coming health care for
their physical. In addition, The hospital provides mobile X-ray service
with doctor and nurse serving at client's company.

Customers of the hospital are as under:

- Customers who live or work in areas around the hospital.

- Employees of companies/organizations who receive medical treatment
under contracts with the hospital. They are employees of about 1,000
companies.

- Customers who are shareholders of the company. They are entitled to a
discount according to the number of shares they hold.

Marketing

Customers

There are two major groups of customers: general customers and customers
who are juristic persons.

Prominent Points of Hospital

  1. Its location is an important factor making targeted groups of
  customers

  decide to receive the hospital’s service.

  2. The hospital has specialized doctors for providing convenient,
  quick

  and integrated service.

  3. The hospital has modem medical equipment and technology and service
  center.

  4. The hospital’s image is widely accepted by the society.

  5. The company was awarded the ISO 9002 Certificate.

Marketing plan:

In the past period the hospital tried to improve the provision of its
services so that it would cover and correspond to the needs of the
customers of the party companies as well as to develop more efficient
liaison with life insurance companies so as to bring about confidence
for policy bearers and create trust for agents recommending customers to
come to use the services at the hospital. In addition to this, the
health check service plan was enlarged in consistence with medical
evolution at present so that it would be increasingly useful and
satisfying to the customers.

Sales promotion:

- Communications with existing customers and nearby residents.

- Introduction of packages such as monthly medical check-up and dental
service.

- Seminar on diseases for companies, which are parties to the
agreements.

- Joint activities with companies, which are parties to the agreements,
and other firms.

Marketing strategy in competition:

Vibhavadi Hospital is a hospital providing services accredited under the
international standard ISO 9002, combined with the fact that the price
at which it reserves is at the medium level, which is suitable for the
surrounding community area. This year, the emphasis will be placed on
the quick provision of external services, e.g. the around-the-clock
countrywide ambulance service, the provision of the elderly service in
case of the occurrence of emergencies.

Price strategy:

In pricing, Vibhavadi Hospital has a policy focusing on:

- the code of conduct and virtue,

- the work management cost,

- the service fee price acceptable to the consumer.

Sales:

The hospital constantly keeps in touch with its existing customers by
mails. Membership and discounts are offered as sales promotions.

Rights and Limitations on Operation of the Business (if any)

  (1) Investment Promotion Certificate

None

  (2) Other Privileges

None

(3) Limitations on Operation of the Business None

Limitation of Advertisment for hospital according to Private Hospital
Act 1999.

Supplies & suppliers:

Purchase of medical and pharmaceutical supplies is made from local
manufacturer and distributors.

Hospitals within the group

The company also holds shares in the following the subsidiary company.

VIBHAVADI MEDICAL CENTER PUBLIC CO.,LTD.

VIBHAVADI PATTANAKARN SUPALERK

MANSION (VIBHAVADI 2) U-THONG

100% 16.50% 6%

KARNCHANA CHAO PHAYA VIBHAVADI

BURI HEALTH HOSPITAL CONSULTANT

15% 5.44% 10%

From the said chart, in the portion of the subsidiary the company would
supervise work management by having company directors entering to
supervise the policy aspect by being directors of the subsidiary, while
the associated company manages work independently but would coordinate
activities with one another in the medical data, purchase, service,
medical instrument and examination and treatment aspect, in which work
management in the form of a network will increase the bargaining power
in purchase, which means a cost reduction; the personnel and medical
instruments are interchangeable and patients can be forwarded between
hospitals, an enlargement of the customer base.

Structure of Revenue

 Service Capacity

2000 1999 1998

Out-patients, average per day 735 700 700 In-patients, average per day
140 140 145

Nimbler of total beols 260 275 275 Occupancy Rate 53.85% 50.91% 52.73%

Revenue from Operation in past three years.

Revenue 2000 % 1999 % 1998 %

Out-patients 195,246,837 42.70 186,418,328 41.70 185,862,095 38.50

In-patients 239,213,514 52.32 237,499,335 53.13 272,245,393 56.38

Other revenue 21,274,075 4.65 23,123,781 5.17 24,734,989 5.12

Company’s Portion 1,519,140 0.33 3,362 0.00 -- --

In Net In come of

Subsidiary Company

Total revenue 457,253,566 100 447,044,806 100 482,842,477 100

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