Philippines positioning itself as a leader in healthcare outsource services.The Philippines is positioning itself to be a leader in healthcare outsourcing services, with expectations that it will double its revenue in the next three years.
With its large pool of qualified nurses, the Philippines is fast becoming a destination of choice for the outsourcing of medical and healthcare services.
Last year, revenue for these services reached US$430 million, a 55-percent increase over the previous year. The healthcare outsourcing industry is now one of the fastest growing sectors in the IT-BPO industry in the Philippines. By the end of 2016, the industry is expected to generate revenues of up to US$1 billion.
More new hospitals in Philippines expected after restrictions lifted
After nine years, the Department of Health (DOH) in Philippines has lifted an administrative order in 2013, restricting the establishment of new hospitals. Health Secretary Enrique Ona said they decided to amend Administrative Order 2004-004, containing the “Guidelines for the Issuance of Certificate of Need to Establish a New Hospital.” This could lead to more new hospitals being built.
Medical Device Market In PhilippinesPhilippine medical device market scale in 2011 was approximately US$400 million. The market scale is modest and similar to Indonesian medical devices and market scale. The overall medical device market in 2016 is expected to reach US$600 million; also, the compound annual growth rate will be 8.14% in 2011-2016. According to the further analysis of the medical device market structure in Philippine in 2011, diagnostic imaging product is the main item, accounted for 35.8%; followed by medical devices that accounted for 21.9%, other medical devices accounted for 21.5%, and auxiliary devices, dental products, and orthopedic implants accounted for 9.1%, 8.6%, and 3.2%, respectively. The Philippine medical device market relies heavily on foreign imports due to the underdevelopment of domestic medical device industry. According to the import analysis, in terms of medical consumable products, approximately 94% of the wound dressing products rely on imports from Belgium and China; also, 82% of the catheters, surgical gloves, and protective equipment are imported from Malaysian mainly. In addition, over 98% of the auxiliary devices, such as, hearing aids and pacemaker; are imported from Hong Kong and Switzerland. The artificial joints have great opportunities to grow and mostly imported from Taiwan.
Facts of Philippines’ Pharmaceutical IndustryPhilippines Pharmaceuticals Market Growing At Its Fastest Pace
The Philippine pharmaceutical market is valued at US$2.51 Billion (Php111.60 Billion) in 2008, and forecasted to reach US$3.91 Billion by 2013. In terms of the overall market this is comparable to Pakistan and Thailand, and in terms of per capita, it is similar to China and Iran. The Philippines is continuously ranked as the 11th most attractive pharmaceutical market in the Asia-Pacific region, and the third biggest market in ASEAN after Indonesia and Thailand.
The bulk of the sales in the Philippines is from ethical or prescription drugs, which represents about 70% of the total sales. Over-the-counter (OTC) products account for about 24%, while nutritionals occupy the remaining share of the pie. About 85% of products are sold through drug stores and 15% are distributed to end-users in hospitals and doctors’ clinics.
Fourteen (14) of the Top 20 pharmaceutical companies in the world have manufacturing facilities in the Philippines. The share of local manufacturers in the drug market is seen to rise to 38% and will likely continue to expand through 2010 and beyond. Multinational drug companies are expected to grow by 4% in 2009.