PHILIPPINES RAMPS UP HEALTHCARE BUDGET PHILIPPINES
Travel restrictions spur telehealth in China
Per capita total expenditure on health xxx
CHINA
Philippine Health Insurance Corporation
The Philippines finalised its $81b (PHP4.1t) national budget in January 2020, a 12% increase from 2019’s budget, and allocated $3.2b (PHP164.7b) for the health sector. About half, $1.3b (PHP67.4b), went to the Philippine Health Insurance Corporation, whilst $1.1b (PHP59.6b) went to hospital services, and the remaining $670m and (PHP34.2b) to public health services. The budget also allocated $150m (PHP7.5b) for the National Immunization Program, $810m (PHP41.1b) for the Health Facilities Operations Program, $370m (PHP19.1b) for the purchase of drugs, medicines, and vaccines for distribution to various government health facilities. The government also allocated $190m (PHP9.5b) for Human Resources for Health Deployment to hire 744 doctors, 19,700 nurses, 4,538 midwives, 222 dentists, 303 pharmacists, 200 nutritionist dieticians, 601 medical technologists, and 81 physical therapists, as well as $180m (PHP9.4b) for Medical Assistance Program to provide financial assistance to 1 million indigent patients. According to a note by Fitch Solutions, the country’s Department of Health (DOH), being one of the major recipients of the national budget, will have increased capabilities to build and upgrade medical infrastructure nationwide and address the scarcity of employed health personnel across public health facilities, particularly for those located in hard to reach areas. Fitch Solutions believes that due to the country’s concerted effort to improve the health and well-being of its population, the Philippines healthcare and pharmaceutical market is set to experience robust growth. With that, healthcare expenditure in the Philippines is expected to grow steadily through to 2029, rising from $17.2b (PHP897.4b) to $60.7b (PHP3.1t). 6
HEALTHCARE ASIA
C
hina’s online healthcare has grown explosively as many patients who have been trapped indoors are turning to Internet based options for diagnosis and treatment, according to Bain & Company’s report. For instance, healthcare services platform Ping An Good Doctor had a nearly 900% MoM increase in new users in January, when the virus spread across China. The number of online users and visits likewise surged at online healthcare community Ding Xiang Yuan and telemedicine platform Chunyu Doctor. Before the outbreak, the population typically visited physical institutions for their healthcare needs. According to a survey, only 24% had used telemedicine. However, 97% expressed interest in using digital health services if the costs were covered by an insurance provider or employer. Nearly two-thirds or 64% are also expecting to use telemedicine within the next five years. “If consumers develop digital habits and a greater willingness to pay for services during the epidemic, that timeline could be significantly shorter,” the report stated. Bain advised that the digitisation of China’s healthcare system needs to rapidly advance to be able to prepare for future epidemics. In particular, services like electronic records and digital prescriptions, as well as AI and big data, could break down silos between hospitals. It noted that whilst some technologies like AI-enabled feverdetection devices are being rolled out quickly, other developments such as the widespread adoption of electronic medical records could improve the system’s efficiency and transparency in times of crisis. “Continuously develop digital capabilities through self-building, partnership or M&A. Use these capabilities to revamp patient and medical personnel experiences,
Online healthcare platforms such as Ding Xiang Yuan saw a surge in online users and visits.
Services like electronic records and digital prescriptions could help to break down the silos between hospitals in China.
while improving organizational transparency and efficiency,” the report noted. A separate brief from Bain & Company also revealed this pattern across Asia Pacific. Singapore-based telemedicine platform MyDoc recorded a 60% rise in the number of daily active users in February, and more than doubled again in March. Further, Bain’s research revealed that nearly 50% of patients in Asia Pacific expect to use digital health tools in the next five years. In addition, over nine in 10 or 91% also said they would use digital health services if the costs of using it were covered by an employer or insurance provider. “What we are seeing is a step change in the acceptance of telemedicine,” said MyDoc co-founder and CEO Snehal Patel. “Having tracked users in this space for over seven years, this sort of rapid adoption is unprecedented.” Telemedicine has also been receiving further government support since the pandemic, as they viewed it as a tool for containing the spread of the virus. For instance, Australia has extended Medicare coverage for telemedicine and South Korea eased restrictions on telemedicine to treat COVID-19 patients remotely.
