Unprecedented Transformation in Care Delivery across Asia-Pacific to drive Innovation and Efficiency.
Healthcare across Asia-Pacific today is in a state of accelerated evolution due to not only changing demographics, but also due to disruptions in the traditional industry value-chain. While the top private healthcare service providers in countries like Singapore, Malaysia and Thailand are likely to witness between 15 to 20 percent revenue growth due to continued growth in medical tourism, shift in balance of consumers where public healthcare is prioritized for those with greater need, and growing customer sophistication, there is a need to focus on cost efficient delivery of healthcare through shared responsibility across the value chain.
With a significant increase in the old-age dependency ratio especially in industrialized countries like Australia, Japan and Singapore, ageing populations have a higher demand for surgical interventions as well as aging in place supportive care. While these countries are seeing a transition in healthcare infrastructure towards day or ambulatory surgery as well as home healthcare, emerging markets in Asia have been been slower to adopt this as healthcare is still very much treatment oriented and hospital focused. With increasing patient population, budget constraints and shortage of resources impacting the current medical world, Asia has not been spared and efficiency is the buzz word in the management of every hospital and delivery of healthcare services.
One of the most pressing issues in Malaysia is access to healthcare. Healthcare service providers are largely concentrated in urban areas creating large pockets of rural and remote populations who have to struggle to reach the doctor. Seeing this as a key opportunity, leading private healthcare providers are expanding into tier 2 and tier 3 cities. At the same time, the situation creates opportunities for telehealth and remote patient monitoring companies as well who are working with telecommunications service providers to penetrate these areas.
The evolution and establishment of polyclinics or clinics, is both complementary to as well as a threat to the private hospital sector. Transitioning and ensuring seamless care across primary and tertiary centres is not seamless and holistic healthcare management is still a challenge, however, a well-established primary care infrastructure increases the accessibility for patients.
“This is changing the way hospitals look at their operations, structure, roles, activities as well as their key measurements. The traditional operating models are no longer relevant in today’s healthcare environment and healthcare service providers need to focus on areas where they have expertise and can create efficiency and value based care” said Rhenu Bhuller, Senior Vice President, Healthcare Practice, Frost & Sullivan.
“Healthcare service providers can move across the value chain through partnerships, collaborations or acquisitions to be able to provide end to end services, consisting not only of treatment, but financing, pharmacy and lab services as well as follow on home care that will enable them to ensure resources are used effectively and for maximum benefit.”
Rhenu Bhuller, Senior Vice President, Healthcare Practice, Frost & Sullivan
Healthcare providers and industry players need to consider key trends and dynamics which are driving reform in healthcare systems across the Asia-Pacific Healthcare industry, such as mobility and security of information, risk sharing, rebalancing of public and private sector financing and delivery of care, use of data to drive decisions as well as patient engagement.
2014: Transparency in Pricing
Governments in APAC are increasingly introducing populist measures and streamlining healthcare regulations. Transparency in pharmaceutical pricing is one of the important steps towards affordable healthcare for the population. In addition, governments will also improve drug reimbursement regimes to support access to care for underserved communities as well as aged care. This may lead to tighter pricing controls and impact profitability for manufacturers, leading them to make decisions to focus on the more lucrative private sector.
The Pharmacy Act 201 is a new bill in the pipeline under the Malaysian government. It plans to merge all 4 existing Acts through Consolidation, Harmonization, and Liberalization in the Pharmacy Legislations; addresses lacunae and loopholes in present legislations; deterrent penalties on serious offences; reduce bureaucracy (through directives); accommodate to current International Requirements; and bringing transparency for investors in the pharmaceutical industry.
2014: Value Based Care/Health Technology Assessments Gain Momentum
Mandatory price cuts, prescribing controls, spending caps and generics promotion are evolving into innovation/therapeutic value rating and cost effectiveness assessment tools. This will lead to payments being tied to the quality and outcomes of care.
2014: Medical Technology Adoption an Uphill Task
Only few governments in APAC are introducing regulations and providing funding to support adoption of high level medical technology. Even in the private sector, ROI is difficult to realise and business models uncertain as there are unresolved concerns around data security and providers feel more comfortable in placing investments in more tangible areas.
2014: Collaboration Drives Efficiency
Healthcare providers will makeover to adapt to changing business requirements. Outsourcing grows as providers focus on their core competencies to improve outcomes with shared models of buy one, serve many.
2014: Healthcare Continues the Journey Home
Aging populations, maximum utilisation of infrastructure drive home healthcare with mature markets lead the way. Aging in place, retirement villages, supportive services for the elderly ranging from basic nursing to meal delivery and holistic healthcare will be areas of growth. US and Japanese models may also see application in countries like Singapore. Through these developments, industry stakeholders are working towards the vision of Smart Communities where concerted advancements in healthcare as well as other industries will pave the way for the progress of the society as a whole.
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? Contact us: Start the discussionMedia Contact: Donna Jeremiah Corporate Communications – Asia Pacific P: +61 (02) 8247 8927 F: +61 (02) 9252 8066 E: firstname.lastname@example.org Carrie Low Corporate Communications – Asia Pacific P: +603 6204 5910 F: +603 6201 7402 E: email@example.com Melissa Tan Corporate Communications – Asia Pacific P: +65 6890 0926 F: +65 6890 0999 E: firstname.lastname@example.org