UMSC leads the way in privatised healthcare

The Malaysian hospital has a 99% retention rate for both staff and doctors.

The healthcare industry is rapidly evolving, with the privatisation of hospitals offering increased potential for revenue and benefits for all involved. UM Specialist Centre, led by CEO Norzaiton Senusi, is a case in point; the Malaysian hospital has seen its revenue reach RM250m (US$55m) in 2022, with the average specialist earning up to RM1m (US$221,788) annually. This range would still depend on the performance and services of the specialists.

The hospital also offers sponsorships for the talents to further their post basic as well as sponsoring the high school-leavers to further studies in diploma of nursing. The sponsored students will remain employed with UMSC for a designated term. A scholarship for the diploma can cost up to RM40,000 (around US$8,000) for each recipient.

“It is not 100% but we are about 95% to 99% in terms of our retention strategy, not only for the staff but also for the doctors,” Norzaiton told Healthcare Asia.

The private healthcare hospital has more than 270 consultants who practise in multi-disciplinary specialties. It also employed more than 500 expert professional staff members composed of nurses, radiographer, pharmacist, medical laboratory technician, and non-clinical talents.

Robotics surgery department

Aside from staff retention, UMSC seeks to ensure that its facilities are up to date. This is why it is currently venturing into more cutting-edge technology in a new hospital building.

This new building will feature treatments such as robotic surgery and high-intensity focused ultrasound (HIFU), which are medical processes that use ultrasound waves to treat conditions. “We plan to go to even something big for example, like robotic surgery, the HIFU for the oncology patients, proton beam therapy and to treat the uterine fibroids,” said Norzaiton. “In summary, we will continuously make improvements to innovate, automate the process, which we can do now and whenever there will be another process with a higher and more aggressive innovation that we will do,” she added. The robotic surgery will also improve minimally invasive surgical approach as well as reduce manpower needed for surgery. Yale Medicine defines minimally invasive surgical approach as a “type of surgery that involves smaller incisions and shorter recovery time.” Before there was a lot of blood loss when performing surgery and it also required several nurses. Now with the help of robots, it will reduce wounds and there will be an improvement in wound management. UMSC is not the first medical centre to adopt robotic medical surgery in Malaysia. To be at par with other established private hospitals, the needs to provide advance treatments facilities and services are crucial. UMSC could be the second hospital in Malaysia to start HIFU treatment in the country. On the HIFU treatment, Norzaiton said it focuses more on women’s treatments, specifically fertility treatments. HIFU treatment mitigates fertility impact and the risk of complications women may face in typical treatments. Asked about the target date of the new hospital, Norzaiton said the specifications of the project are in the pipeline but they are eyeing to start construction next year. They also project completion by 2026 or 2027, when it will also start the full implementation.

A Bain & Company 2023 research also showed that investments in surgical robotics surged over the past decade as there is a promising improved precision and visualisation for surgeons and better experience and outcomes for patients. The robotics surgery market has a US$3 to US$3.5 billion global market, up from around US$800 million in 2015.

It also sees AI-assisted to fully autonomous robots, advancements in technology, and hardware that will upgrade operating rooms. A 2022 GlobalData report also showed that whilst medical robotics hold promise, high spending slows down its adoption.

“Medical robotics is a fast-growing field, with the surgical robotics segment leading the market. Whilst COVID-19 caused the cancellation of an estimated 15% to 30% of elective surgeries from April 2020, there will still be 3.7 million robotic surgical procedures in 2022,” read the report. High costs of medical robots and additional training to be equipped in using the technology will often be required, which also hinders speedy adoption.

Malaysia’s healthcare spend

A YCP Solidiance 2022 study showed that Malaysia’s total healthcare expenditure has more than tripled from US$7.4b (RM33b) in 2010 to US$16b (RM72b) in 2022.

This data is expected to continue to rise between 8% to 9% year-on-year until 2025, which will make the market’s healthcare industry an utmost priority for both the public and private sectors. Its government even considered the healthcare segment as a National Key Economic Area, with the adoption of technology-based services earmarked as a priority for both investment and research. The recovery of the global tourism industry has also increased the urgency with which Malaysia must prioritise its healthcare growth, as the market seeks to make medical tourism a key pillar of its post-pandemic growth plan.

Data from YCP Solidiance’s professionals in Malaysia also stressed the potential of several high-growth industries such as aged care, vaccine development, and telehealth. These solutions use digital transformation to reach consumers and innovate effective solutions.

Also, in Malaysia’s healthcare segment, telemedicine or telehealth services are growing in the country, similar to its Asian counterparts. An example of this is an Alibaba investment that would permit telehealth services to tap technology including cloud computing that would create more efficient systems and allow telehealth providers to serve more patients.

“Investors, both local and foreign, can take advantage of this opportunity to introduce innovative, tech-driven solutions that answer the ever-changing demands of the Malaysian market,” read the study.

Malaysia’s internet economy contributed 21.12% of the US$174b that the Association of Southeast Asian Nations-6 (Malaysia, the Philippines, Vietnam, Singapore, Indonesia, and Thailand) produced in 2021, with numbers seen to increase as the Southeast Asian region leverages its digital transformation.

“Shifting consumer behaviours and needs in the wake of the global COVID-19 pandemic have made it necessary for business industries to adapt rapidly through collaboration with both public and private sector players to keep up with the ever-changing landscape,” read the report.

High healthcare cost to slow down surgical robotic adoption

Surgical robotics market growth was driven by the robotics surgeries gaining ground in the hospital operating room in the past five years, said data analytics firm, GlobalData. But with uncertain market conditions, the surgical robotics market is more vulnerable compared to other healthcare segments.

Even so, GlobalData sees a rising market for robotic surgical systems and accessories, which is set to reach US$30.7b globally by 2030, posting a compound annual growth rate (CAGR) of 10% from 2022 to 2030.

Tina Deng, a principal medical devices analyst at GlobalData, said an average price of a surgical robotic system in 2022 was about US$1m plus an additional yearly service fee.

“The high cost can limit the ability of hospitals and ambulatory surgical centres to invest in new surgical robotics technology,” said Deng.

Depending on the lifespan of capital equipment, surgical centres may not replace capital equipment or purchase additional units in a given year. Hospitals that have robotic systems prefer to have more robot-assisted procedures to recoup their investment in the new equipment.

GlobalData also warned that consumers could delay or cancel non-essential procedures and services, which will lead to a slight reduction in surgical robotics demand but only in the short term.

AI for eyecare

Another evolving cutting-edge technology in the industry is AI, which is also becoming a game changer for eye care.

“A recent GlobalData poll shows that 49% of respondents believe AI will significantly disrupt their industry, and 25% of respondents believe that disruption has already begun,” Alexandra Murdoch, medical analyst at GlobalData, said.

GlobalData forecasts that the total AI market will be worth US$383.3b in 2030, up from US$81.3 billion in 2022, having grown at a CAGR of 21.4%.

Overall, Boston Consulting Group (BCG) sees a rise in new technologies and competition between ecosystems providing hybrid healthcare.

“So, winning will mean not having just a great product market fit, but also making wise choices about who you partner with and the ecosystem that you are building so that you can then compete with another ecosystem,” said Anurag Agrawal, partner and associate director at BCG.

In 2023, BCG predicts new technologies such as virtual reality, digital twins, and generative AI emerging in digital health solutions.