GLOBAL HEALTHCARE AND MEDICINE SECTOR
Global healthcare and medical sector is one of the fastest growing sectors, contributing around 10% to country’s GDP. The global health care market is expected to reach $18.7 million by 2020 from 5.8 billion$ in 2015. This increase will be driven by the health needs of aging population, the emerging-market expansion, infrastructure improvements, treatments and technology advancement. Among developing markets especially, Asia and Middle-East may bring opportunities for international hospital chains, pharmaceutical and medical technology companies seeking geographic and revenue growth. With rise in healthcare providers and their services, spending on healthcare is estimated to increase at an average of 5.2% a year in 2014-2018 to total 9.3 trillion$. Outlook for the global healthcare sector over the next few years looks positive.
Healthcare in both private and public setting has been a very costly industry. Most of individuals associate healthcare cost with negative situations. Reason being, healthcare providers receive payment for each and every service they provide be it lab-test, office visit, or medical procedures, whether or not they actually help the patient. Unfortunately higher costs are not actually resulting in high quality, sometimes the real danger to the patient is not their disease but the hospital that treat them. Therefore, providing qualitative and cost-effective healthcare is a major challenge before governments across the globe. Access to health care treatment varies from country to country, from poor countries such as those in Africa and South East Asia are seeking infrastructure basics in sanitation and clean water treatments, to developing countries like china and India that are seeking quality treatments to fight deadly diseases, to mature markets like that of US and Europe that face issues of cost containment. With government rolling out more services in both public and private services, various countries are instituting cost reducing measures such as new physician incentive models, prescription drug price control, evidence based medicines. Most national healthcare systems have been encouraging use of generic drugs, in US for eg the prescription filled by generic medicines have risen by 80% over last decade .
Several other countries have been turning to value-based pricing for new drugs. Some countries are increasingly mandating prices, countries such as India, Brazil and China have national lists of essential drugs that decide the prices. From Infrastructure perspective, government has identified investment in health as a priority and has decided to increase its budgetary allocation. Further, there has been an increasing trend towards adoption of universal healthcare, with more countries expanding their public and private healthcare system coverage or deepning it in order to reduce out- of pocket spending.
Across the world healthcare systems are recognizing the need for innovation and technology that help facilitate new diagnostic and treatment options. Some exciting technological advancement are taking place with the help of information technology and medical science, such as 3D printing to help in preparing tissue transplants. In addition to big data analytics to gain insight into an active industry trends. Technology are also connecting developing and emerging markets, adoption of new digital health information technologies such as electronic medical records, tele medicine, mobile health applications and electronic medical prescriptions are driving change in the way physicians , payers, patients and other sectors interact. Technological innovations demand high investments which many country’s government cannot afford therefore, increasing use of Merger and Acquisition, joint ventures and other collaborative business models, are now becoming a norm in various countries . Such transnational changes taking place in the global healthcare sector will push the participants to innovate in new and exciting way. Additionally, this may lead to countries learning from other nations successful practices and adapt them to local needs.
From market perspective Brazil has a strong local generic industry, largest in Latin America, which is supported by government policies aimed at extending the availability of medicines to low income people. Mexico is the second- largest pharmaceutical market in Latin America. At the moment Mexico offers significant and improving opportunities for pharmaceutical companies, especially in the generic medicine and patented drugs sectors. UK government is keen on capitalizing opportunities in medical technology advancement. Germany is EU’s third largest health care market, increased use of innovative E-health solutions implies business opportunities for companies and manufacturers keen on investing in Germany. In similar way Australia, Chinese and Indian markets also offer opportunities in healthcare sectors, as healthcare infrastructure in general and technological infrastructure in particular are on rise in these sectors.
As government are prepared to increase their spending allocation on health care in order to meet the demand and this should have positive impact on both private and public healthcare sectors. Adopting and leveraging smart technologies combined with innovative delivery models government has been rolling out number of healthcare related tenders for various requirements of the healthcare for e.g. India is expected to add over 1.8 million beds to achieve its target by 2025 similarly Saudi government has decided to fund 19 new hospitals on top of 102 currently under construction. Such opportunities are been rolled out regularly by government or any private institution for that matter, for the investors or foreign entities keen on capitalizing on such opportunities.
For more information on healthcare tenders, government tenders and global tenders please click on the link below
https://www.tendersinfo.com/
