# Bradsaúde Bets on SMEs and Hospitals to Drive Growth and Improve Profitability, BTG Says

*SMEs already account for 28% of the insurer’s membership base and have lower medical loss ratios than large corporate accounts, while hospitals could contribute more than 15% of earnings by 2031.*

- Published: 2026-08-24
- Section: Insights
- Tags: Atlântica Hospitais, Bradesco, Bradesco Saúde, Bradsaúde, BTG Pactual, Health Insurance, healthcare, hospitals
- URL: https://brazilstockguide.com/insights/bradsaude-bets-on-smes-and-hospitals-to-drive-growth-and-improve-profitability-btg-says/

![](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2026/08/Bradsaude-Bradesco.png?fit=1672%2C941&ssl=1)

**By Brazil Stock Guide –** Bradsaúde is betting on small and medium-sized businesses and the expansion of its hospital network to sustain growth and improve its profitability mix over the coming years, BTG Pactual said following meetings with company executives in Rio de Janeiro.

SMEs already account for about **1.1 million of Bradsaúde’s roughly 4 million healthcare members**, or 28% of the total. Of the approximately 300,000 members added over the past 12 months, about 100,000 came from SMEs. Management expects the segment to account for an even larger share of incremental growth in 2027 and 2028.

The segment is also more profitable. According to BTG, medical loss ratios, or MLRs, for SME plans are currently **in the high-70% range**, compared with **the high-80% range for large corporate accounts**. SME plans also benefit from more favorable repricing dynamics through pooled adjustments.

A key part of the strategy is leveraging Bradesco’s distribution network and its extensive information on the risk profile and credit quality of small and medium-sized companies. Bradsaúde believes that data advantage allows it to select customers more effectively, while Bradesco’s nationwide reach provides a powerful distribution channel for health insurance products.
The second growth engine is the hospital business. **Atlântica Hospitais**, which currently accounts for about 6% of Bradsaúde’s bottom line, could contribute **more than 15% of earnings by 2031**, according to management.

Based on projects already in the pipeline, the hospital platform is expected to reach about **4,100 beds by 2030**, up from roughly 2,900 today. The company recently announced a project in Bauru with Grupo Santa, in addition to developments in Sorocaba and São Conrado through Atlântica D’Or.

Bradsaúde sees room for further hospital expansion, particularly in Brazil’s Southeast and South. The biggest opportunities are expected to be in cities outside the major metropolitan areas of São Paulo and Rio de Janeiro states, while the North and Northeast are not priorities for now.

In its health insurance business, Bradsaúde expects its 2026 medical loss ratio to remain stable or improve slightly from 2025. The third quarter is likely to face tougher year-on-year comparisons, while the fourth quarter should benefit from a much easier comparison base, BTG said.

BTG also highlighted Bradsaúde’s cash-generation capacity. Management indicated that the company could eventually establish a formal dividend policy aimed at distributing excess cash after taking into account the capital required for future projects.

BTG reiterated its **Buy** rating on Bradsaúde shares (SAUD3), with a 12-month price target of **R$18**. The stock was trading at R$13.92 at the time of the report, implying 29.3% potential upside and an estimated total return of 35.8% including dividends.

---

Source: Brazil Stock Guide, https://brazilstockguide.com/insights/bradsaude-bets-on-smes-and-hospitals-to-drive-growth-and-improve-profitability-btg-says/