Growing PH healthcare market draws US companies
The steady increase in demand, spending and investments in the Philippines’ healthcare and medical industry has caught the eye of foreign firms eager to tap business opportunities in the country.
The International Trade Administration, an agency under the United States Department of Commerce, for one, is already putting together a trade mission that targets to bring to the Philippines up to 20 US companies and groups engaged in the healthcare and medical industry.
According to the ITA, there are huge business opportunities in the Philippines, where the demand for healthcare is expected to continue to rise on the back of a “growing population, growing annual per capita income, increased spending on medical care, and growing investments” in healthcare facilities.
“Healthcare spending in the Philippines is estimated at $9 billion in 2013, with a projected 10-percent increase in 2014. Approximately 64 percent of the labor force is fully employed, many with access to health insurance for themselves and for their dependents,” the ITA said in a notice.
According to the ITA, the Philippine healthcare industry, although relatively small, presents a good opportunity for US firms because the medical device market is almost 100 percent imported, with a strong US presence.
“Despite their perceived higher costs, American products enjoy a prominent place in the market due to US-trained Filipino doctors and their preference for the high technology of American medical equipment and instruments. Most hospital managers also prefer US technology over other foreign brands, although US manufacturers are facing growing competition from Germany, the Netherlands and Japan,” the agency said.
The ITA also pointed out that, in addition to private investments, the Philippine government’s Public-Private Partnership program would allow private groups to finance, design, build, operate, and maintain a hospital for a maximum period of 25 years, after which the hospitals would be turned over to the Department of Health. Such projects are expected to not only improve the facilities, but also the healthcare delivery system, making medical care accessible to more Filipinos.
Apart from opportunities presented through the PPP program, constant requirements for updated healthcare services, new technologies and equipment replacement drive market growth, the ITA reported.
“Hospitals continue upgrading facilities to remain competitive. Several investment companies have acquired stakes in the healthcare sector, providing much-needed capital for facilities to upgrade and modernize equipment. Real estate developers have also partnered with known healthcare providers to construct health and wellness centers in and around the communities that they are building, adding more appeal to the community and more value to the real estate,” it said.
The ITA’s planned healthcare and medical mission is expected to arrive in the country in February 2015, after which the same delegation will head to Indonesia.
The mission will include representatives from a variety of US medical/healthcare industry manufacturers (equipment/devices, laboratory equipment, emergency equipment, diagnostic, physiotherapy and orthopedic, healthcare information technology, and other allied sectors), service providers, and trade associations and organizations. The mission will introduce the participants to the appropriate government agencies, end-users, and prospective local business partners whose needs and capabilities are best suited to them.
