Healthcare In GCC


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Healthcare In GCC

  1. 1. Healthcare in GCC Praveen Pillai
  2. 2. The Market 07/02/10 Praveen Pillai 38
  3. 3. 07/02/10 Praveen Pillai Healthcare spending in the Gulf will reach $60 billion in 2025, up from $18 billion in 2008, according to McKinsey & Co. $ 12.8 Billion $ 3.2 Billion $ 16 Billion
  4. 4. Opportunities & Threats 07/02/10 Praveen Pillai
  5. 5. <ul><li>ITHMAR Capital reports Entitled “Expand, Consolidate & Support: Meeting the GCC Healthcare Challenge 2050”, the report was produced in partnership with Dow Jones Private Equity. Among others, it highlights how the UAE alone will need 15,698 new beds and physicians along with 31,396 additional nurses by 2020. </li></ul>07/02/10 Praveen Pillai This statement from ITHMAR capital itself define the strength as well hidden threats in the GCC Healthcare market. Demand side factors spell confidence, but the industry faces several supply-side constraints
  6. 6. Opportunities <ul><li>Favorable demographic profile:- Rising population coupled with ageing demographic pattern is expected to drive healthcare demand in the GCC. The GCC population growth has averaged 3% per annum over the past five years, among the highest growth rates in the world. </li></ul>07/02/10 Praveen Pillai This will generate significant healthcare demand
  7. 7. GCC Market Potential Study GCC countries have per capita GDP similar to those of North American and European countries Source: IMF 07/02/10 Praveen Pillai
  8. 8. Opportunity <ul><li>Per capita healthcare spending in the GCC was US $ 631 in 2006, below the global average of US $ 716 . </li></ul><ul><li>US per capita healthcare spending - $ 6719 </li></ul><ul><li>UK per capita healthcare spending - $ 3332 </li></ul><ul><li>GCC per capita healthcare spending is expected to grow faster than the global average. </li></ul>07/02/10 Praveen Pillai
  9. 9. Opportunities <ul><li>The market size for healthcare services to be around 46 million treatments in 2008, which translates into US$ 18 billion in value terms. </li></ul><ul><li>The share of inpatients and outpatients is 9% and 91% in volume terms, and 20% and 80% in value terms. </li></ul><ul><li>Its just a myth that an inpatient facility will only generate maximum volume but the truth is majority of the patients are still depending upon the Out patient facilities . </li></ul>07/02/10 Praveen Pillai
  10. 10. Opportunities <ul><li>The GCC may require in excess of 25,000 additional beds by 2020 (from the 2007 level) to address the growing demand for inpatient treatments. The largest share of the demand increase is accounted for by Saudi Arabia, followed by the UAE. Saudi Arabia is the market of future in GCC followed by UAE, Qatar & Kuwait </li></ul>07/02/10 Praveen Pillai
  11. 11. Potential of Saudi Health Care Market <ul><li>Demand for hospital beds is likely to grow from 51,000 to 70,000 </li></ul><ul><li>Demand for physicians is likely to rise from 40,000 to 54,000 and </li></ul><ul><li>The number of hospitals is likely to rise from 364 to 502. </li></ul>Average hospital beds per 1000 population in GCC is around 2.2 per compares to global average of approximately 6.1 07/02/10 Praveen Pillai
  12. 12. Growing insurance penetration <ul><li>Growth in income levels as well as an increase in health insurance coverage will boost demand for healthcare services. </li></ul><ul><li>According to re-insurer Swiss Re, GCC per capita insurance stood at US$ 129 in 2007, significantly lower than the global average of US$ 519. The same pattern of lower insurance coverage is revalent in the healthcare sector with only 10% of the GCC population covered under a health insurance program. However, latent potential in the form of an under penetrated health insurance market is slowly unlocking with the introduction of mandatory medical insurance for expatriates. </li></ul>07/02/10 Praveen Pillai
  13. 13. Health Insurance Outlines in GCC countries 07/02/10 Praveen Pillai
  14. 14. Life Style Diseases <ul><li>Urbanization and rising per capita income have led to the consumption of unbalanced diets and a more sedentary lifestyle in the GCC, thereby aggravating the prevalence of lifestyle ailments (“ailments of affluence”) such as diabetes and cardiovascular diseases. </li></ul><ul><li>The UAE ranks second highest in the world for diabetes prevalence (20%), followed by Saudi Arabia (16.7%), Bahrain (15.2%) and Kuwait (14.4%), according to the International Diabetes Federation. Coronary problems and other obesity-related diseases are also on a rise in the Gulf region. </li></ul><ul><li>Coronary illness and obesity-related diseases are, in turn, generating a need for specialist hospitals. For example, levels of diabetes are due to triple by 2030, with the UAE the worst affected in the region suffering the second-highest rate of type 2 diabetes in the world. Also, the obesity rate for GCC nationals stands at 40%, one of the highest in the world . </li></ul>07/02/10 Praveen Pillai
  15. 15. Threat <ul><li>Demand side factors spell confidence, but the industry faces several supply-side constraints </li></ul><ul><li>1. Acute shortage of human resource </li></ul><ul><li>2. Rapid development of healthcare in neighboring countries and within the city. </li></ul><ul><li>3. Sub-optimal health infrastructure </li></ul><ul><li>4. Low private sector participation </li></ul>07/02/10 Praveen Pillai
  16. 16. <ul><li>UAE hospital chief voices recruitment fears - The head of the UAE’s largest hospital ha s said that salaries must rise in an effort to ease recruitment problems. Dr Tej Maini, CEO of Sheikh Khalifa Medical City (SKMC), told UAE daily The National that recruitment was a problem that “keeps me up at night”. He told the paper that salaries would have to rise while more effort must be made to encourage. Dr Maini said there was a “shortage in every single profession in healthcare” , from pharmacists and speech therapists to emergency care specialists and cardiologists. He said that while every Gulf nation’s are building new hospitals, they were not addressing the question of how they were going to staff them. </li></ul>Acute shortage of human resource 07/02/10 Praveen Pillai
  17. 17. Rapid development of healthcare in neighboring countries and within the city Praveen Pillai $1.6bn healthcare island planned for Bahrain Oman Plans $ 1 Billion Healthcare City The Sidra Medical and Research Centre 16-storey, 1250 beds Jaber al - Ahmad al - Sabah hospital, Kuwait Cleveland Clinic Abu Dhabi 07/02/10
  18. 18. Rapid development of healthcare that too manned by renowned international healthcare operator. Moorfield's Eye Hospital Imperial College London Diabetes Centre Methodist Hospital Bumrungrad Hospital Thailand 07/02/10 Praveen Pillai
  19. 19. 07/02/10 Praveen Pillai Sub-optimal health infrastructure & lack of confidence UAE pays yearly on an average 2 Billion USD for treating patient abroad. Dubai along send around 950 patients every year spending around 48 Million USD for treatment abroad
  20. 20. 07/02/10 Praveen Pillai Long Way To Go Many, Much More To Gain And Many More To Give. THANK YOU