Need for efficiency in healthcare service delivery to drive
innovation in terms of site-of-care delivery, treatment pathways
and payment models
SINGAPORE, Feb. 22, 2017
/PRNewswire/ -- Despite global political uncertainties and a
sluggish economic outlook, 2017 will be amped-up for the global
healthcare industry that promises partial realization of major
health policies and initiatives. This will in turn drive growth in
the Asia Pacific healthcare
industry, which is expected to see increased spending on healthcare
across all countries, albeit at varying levels.
Increasing acceptance of concepts such as value-based care,
personalization and preventative healthcare is creating demand
amongst consumers and healthcare providers for new technologies and
innovative care delivery platforms while pressurizing industry
participants in pharmaceutical and medical technology companies, as
well as healthcare service providers to reinvent their business
models.
The Asia Pacific Healthcare market (consisting of
pharmaceuticals, medical devices and healthcare technology) will
represent close to 30% of global revenues in 2017, and is still one
of the fastest growing regions globally with a growth rate of 8%
projected for 2017 (in comparison, the global projected growth rate
is 4.8%). Frost & Sullivan projects the Asia Pacific healthcare market to grow to
US$510.7 billion in 2017, up from
US$472.5 billion in 2016.
Globally, the ageing population and rising incidence of chronic
diseases continue to burden the healthcare system with potentially
unsustainable rise in healthcare spending. Japan, Korea, Australia and Singapore are the fastest aging nations in
Asia. It is projected that by
2030, one in five residents in Singapore will be over 65 years of age and
close to two thirds of the elderly are projected to have at least
one chronic disease.
"With overcrowding and increasing treatment cost in hospitals,
chronic disease care will move toward community and home, leading
to opportunities for tele-health, remote patient monitoring and
mhealth," noted Rhenu Bhuller, Partner, Frost & Sullivan.
"Additionally, site of care will transition from tertiary and
secondary care towards home healthcare where possible through the
implementation of remote care delivery models in countries like
Australia and Singapore," she added.
On the industry side, public and political pressure to control
surging drug prices in the US will compel health authorities to
introduce transparency measures around drugs pricing, especially
for some of the expensive diabetes and cholesterol medicines where
more low-cost generic competition is gaining market acceptance.
It is expected that the pricing environment in the Asia Pacific will become more dynamic as
governments seek to introduce more measures to control spending
while meeting the demand for specialty and high-value
pharmaceuticals. This would ultimately drive the generics and
biosimilar market in Asia Pacific
as payers implement measures to drive substitution of more
expensive products.
Innovation also is on the rise in Asia with a number of biotech start-ups and
research institutions in China
moving the application of CRISPR/Cas9 genome editing technique into
human safety clinical trials for treating various cancers. Areas of
increasing investment and collaboration will be in immune-oncology
and regenerative therapy where countries like Japan are taking the lead in nurturing
innovative R&D models around regenerative medicine.
M&A activity will continue driven by diagnostics and
technology deals. Industry convergence and technological
innovations will mean more non-healthcare players entering health
care. As the Healthcare industry transitions toward a digitally led
care delivery model, the industry will need next-gen workforce with
new skill-sets such as big data and predictive analytics, AI and
robotics professionals.
Other key developments forecast for the industry in Asia include:
- Prices of Private Health Insurance (PHI) premiums to increase
as medical costs rise. In some countries, PHI premiums could rise
as much as 20% (e.g., Malaysia,
Singapore).
- Failure to pass the Trans-Pacific Partnership in 2017 will
curtail the incentive for authorities to reform their regulatory
process.
- Medical tourism volumes will see slow growth of 5% due to
economic pressure; however, China
presents a new source of patients.
- The trend of private-public partnerships or use of public
health insurance in private hospitals to share patient load and
maximize use of available resources in Southeast Asia (SEA) will increase. This could
lead to 1/4 of private hospital patients in SEA linked to the
public sector.
- Rollout of universal healthcare in SEA is under considerable
strain. Efforts will be made towards more aggressive
health-financing reforms across all major countries to balance
public, private and out-of-pocket payments.
Frost & Sullivan's Transformational Health 360° Research
helps you to better understand buyer-seller dynamics as the
healthcare system transitions to digital information, the pace at
which new and innovative medical devices and systems are being
adopted and getting embedded into the typical clinical pathway,
both in mature and emerging markets, and enables you to bring
clarity to pharmaceutical/biotechnology, in-vitro diagnostics and
life science research tools market decisions and implementation
tactics. To view current and upcoming research, please visit
http://www.frost.com/c/10024/sublib/category-index.do?category=industry
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Media Contact:
Melissa Tan
Corporate Communications – Asia
Pacific
P: +65 6890 0926
F: +65 6890 0999
E: melissa.tan@frost.com
http://www.frost.com