Thailand healthcare market facts & figures

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Facts & Figures for Healthcare Market in Thailand. Including information on the universal healthcare program, hospitals segment, key trends to impact hospital sector, five force analysis for private hospital, drug market value and medical device market value.

Published in: Business, Health & Medicine
  • Pyathai is a joke. I'm sorry I've been with them for longer than I should have. They are mostly about image than they are science. Because of Pyathai I got VERY accustomed to the the term "IV infiltration" as this happens a LOT, and when my youngest had pneumonia which was undetected after two regular check-ups, that was the last straw. We now use Nakornthorn Hospital: they aren't as flashy, but upon closer inspection the equipment they use is more up-to-date, which is just more reassuring than brightly coloured walls in the paediatrics ward.
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Thailand healthcare market facts & figures

  1. 1. THAILAND HEALTHCARE SECTOR MARKET SNAPSHOT May 2014 © Canvassco 2014. All Right Reserved
  2. 2. © Canvassco 2014 THE UNIVERSAL HEALTHCARE PROGRAM 2 SCHEME TYPE POPULATION COVERAGE FINANCING SOURCE BENEFIT PACKAGES PURCHASING RELATION ACCESS TO SERVICES Social Security Scheme (SSI) Social insurance, compulsory Private sector employees, excluding dependents 19% Payroll tax financed, tripartite contribution 1.5% of salary, equally by employee and government Comprehensive: outpatient, inpatient, accident and emergency, high-cost care, with vary minimal exclusion list; exclude prevention and health proportion Contract model: inclusive capitation for outpatient and inpatient services Registered public and private competing contractors Civil Servant Medical Benefit Scheme (CSMBS) Fringe benefit Government employees plus dependants (parents, spouse and up to two children age less than 20 years 7% General tax, non- contribution scheme, mainly from government budget Comprehensive: slightly higher than SSS and UCS Reimbursement model: fee from service, direct disbursement to public providers for outpateints; conventional diagnosis related group (DRG) to inpatients Free choice of public providers, no registration required Universal Coverage Scheme (UCS) State welfare The rest of (UCS) population not covered by SSS and CSMBS 75% General tax, mainly from government budget Comprehensive: similar to SSS including prevention and health promotion for the whole population Contract model: capitation for outpatients and global badget plus DRG for inpatients Registered contractor provider, notably within the district Source: Ministry of Public Health, Ministry of Finance, SSO, Complied by MKE-ISR (Maybank)
  3. 3. © Canvassco 2014 HOSPITALS SEGMENT IN THAILAND 3 As of 2013, there were 327 hospitals and more than 1,050 public hospitals in Thailand. In term of positioning and target group hospitals may be categorised into four segments; Premium Market Upper-mid tier market Mid-tier market Not-for-profit hospitals such as Bumrungrad, Samitivej, Bangkok Hospital and BNH such as Phyathai, Piyavej, Vejthani, Vibhavadi, Ramkamhaeng and Vichaiyut such as Paolo, Kasemrad, and Chularat such as Siriraj, Ramathibodi, and King Chulalongkorn Memorial
  4. 4. © Canvassco 2014 MEDICAL CLINIC BY TYPE 4 As of 2013, there were 18,000 clinics in Thailand. About 78% are in up-country and 22% are in Bangkok Bangkok Up-Country Total Medical Clinic 1,958 5,130 7,088 Specialised Medical Clinic 212 1,676 1,888 Dental Clinic 1,283 2,113 3,396 Specialised Dental Clinic 4 37 41 Pregnancy Clinic 23 4,302 4,325 Physical Therapy 74 111 185 Healthlab Clinic 66 320 386 Traditional Doctor Clinic 310 335 645 Acupuncture Clinic 32 31 63 General Clinic 87 164 251 Secondary Dental Clinic 10 29 39 Secondary pregnancy Clinic 4 517 521 Total 4,063 14,765 18,828 Source: Ministry of Health Thailand (as of September 2011)
  5. 5. © Canvassco 2014 KEY TRENDS IMPACT TO HOSPITAL SECTOR 5 Increased in min. wages has lead to higher operational cost for reusable products SHORT-TERM LONG-TERM HIGHIMPACTLOWIMPACT Increased in adoption rate of disposable products as a result of higher operational cost of reusable drape JCI Standard AEC 2015Minimum Wage Medical Tourism 54 157 206 300 1980 1997 2010 2013 Minimum wages THB per day (Bangkok) Source: Ministry of Labour, Thailand Ease of access of funding => expansion of capacity for private hospitals => higher purchased volume of disposable drape JCI accredited hospitals tend to use disposable drape as a general practice for operational room Strong growth in Medical Tourism “The liberalisation of the services sector under the AEC allows foreign investors to hold more than a 70% stake in healthcare sector” With an investment funds to flow into hospital sector, growth in expansion of operational capacity is expected Thailand’s JCI Accredited Hospitals •  As of 2013, there are 21 hospitals that have accredited JCI standard •  Disposable drape is not compulsory under JCI standard however, using the drapes avoid the complication on quality control standard 1.0 1.1 1.2 1.3 1.4 1.4 1.4 2.0 2.2 2.5 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Foreign Patients to Thai Hospitals (Million)
  6. 6. © Canvassco 2014 FIVE FORCE ANALYSIS: PRIVATE HOSPITALS 6 Low threat of new entrants High Investment. For a 200 bed hospital typically costs between THB 6,000 - 8,000 million; in rural areas it could cost about THB700 - 1,000 million. The start-up operation cost is about THB20 million. Land availability. Suitable land sites are scare especially in high traffic provinces of Bangkok, Chiang Mai and Hua Hin. Limited human resources. The next barrier is the availability of qualified and experienced doctors. Low bargaining power of suppliers High competition especially for local pharmaceutical manufacturers. (there are over 100 companies in Thailand) Private hospitals establish their own company to purchase drugs and source medical equipment Medium bargaining power of buyers Patient switch hospital choice at a low cost. This is a result of hospitals that offer a wide variety of health insurance packages and patients are focusing on hospital facilities and special clinics rather than the well-known doctors High threat of substitute products or services Patient goes to private hospitals due to more complex treatments being sought and a growing preference for better services With the UCS now covering 75% of the population, patients can choose to seek treatment in public hospitals High sector competition More than 300 private hospitals. The largest 24 hospitals dominate 75% with a combined market share. Expand medical services such as opening after-hours clinics, Many private hospitals have set up specialised tertiary centers to provide full medical services and to launch new services with attractive pricing and promotion to compete
  7. 7. © Canvassco 2014 MODERN DRUG MANUFACTURERS IN THAILAND 7 Up-Country 78 Bangkok 94 # MODERN DRUG MANUFACTURERS (2013) Upcountry manufacturers clusters: Samutprakan, Chonburi, Chacheongsao, Ayuthaya, Pathumthani, Nonthaburi, Nakhornpatom, Ratchaburi, Lopburi, Samutsakorn and Lumpoon Total 172 manufacturers PRODUCTION VALUE BY TYPE (2010) TYPE OF DRUG MILLION THB ALIMENTARY TRACT AND METABOLISM 7,922.02 BLOOD AND BLOOD FORMING ORGANS 2,058.90 CARDIOVASCULAR SYSTEM 2,888.86 DERMATOLOGICALS 2,953.68 GENITO-URINARY SYSTEM AND SEX HORMONES 1,332.07 SYSTEMIC HORMONAL PREPARATIONS 411.42 GENERAL ANTI-INFECTIVES-SYSTEMIC 12,216.79 HOSPITAL SOLUTIONS 2,712.54 ANTINEOPLASTICS 0.19 MUSCULO-SKELETAL SYSTEM 3,907.26 CENTRAL NERVOUS SYSTEM 3,836.95 PARASITOLOGY 449.34 RESPIRATORY SYSTEM 5,738.16 SENSORY ORGANS 380.98 DIAGNOSTIC AGENTS - VARIOUS 48.11 !TOTAL 46,809.16 Source: Bureau of Drug, Thailand
  8. 8. © Canvassco 2014 MODERN DRUG IMPORTERS (2013) 8 THERE ARE TOTAL 655 MODERN DRUG IMPORTERS (2013 IMPORT VALUE BY TYPE (2010) TYPE OF DRUG MILLION THB ALIMENTARY TRACT AND METABOLISM 9,925.30 BLOOD AND BLOOD FORMING ORGANS 12,345.51 CARDIOVASCULAR SYSTEM 10,835.92 DERMATOLOGICALS 1,831.17 GENITO-URINARY SYSTEM AND SEX HORMONES 5,573.81 SYSTEMIC HORMONAL PREPARATIONS 1,081.40 GENERAL ANTI-INFECTIVES-SYSTEMIC 15,074.74 HOSPITAL SOLUTIONS 2,298.96 ANTINEOPLASTICS 12,400.24 MUSCULO-SKELETAL SYSTEM 7,427.41 CENTRAL NERVOUS SYSTEM 8,376.05 PARASITOLOGY 67.15 RESPIRATORY SYSTEM 4,258.04 SENSORY ORGANS 3,325.77 DIAGNOSTIC AGENTS 1,251.23 VARIOUS 577.01 TOTAL 96,649.71 Source: Bureau of Drug, Thailand COUNTRY MILLION THB SWITZERLAND 5,254.53 UNITED STATES 4,162.59 GERMANY 3,838.81 FRANCE 3,315.51 UNITED KINGDOM 2,876.67 ITALY 2,869.11 INDIA 2,610.27 JAPAN 2,269.05 CHINA 1,554.32
  9. 9. © Canvassco 2014 TOTAL DRUG MARKET VALUE 9 YEAR LOCAL PRODUCTION (THB MILLION) IMPORT (THB MILLION) HUMAN DRUG ANIMAL DRUG TOTAL HUMAN DRUG ANIMAL DRUG TOTAL 1987 5,146 309 5,455 2,325 478 2,804 1988 6,709 181 6,890 2,571 593 3,164 1989 8,373 224 8,597 3,308 625 3,932 1990 8,886 291 9,177 3,449 870 4,319 1991 9,658 326 9,983 4,216 1,034 5,250 1992 10,697 385 11,082 4,683 1,114 5,797 1993 11,831 276 12,107 5,075 1,145 6,221 1994 12,970 284 13,254 6,087 1,212 7,298 1995 15,821 462 16,283 9,276 1,487 10,764 1996 18,174 473 18,647 10,435 1,628 12,064 1997 19,592 478 20,069 13,376 2,116 15,491 1998 16,726 352 17,078 9,739 2,101 11,840 1999 19,034 687 19,721 14,232 2,487 16,719 2000 20,996 683 21,678 16,700 2,517 19,218 2001 23,088 830 23,918 19,968 2,722 22,690 2002 24,145 542 24,687 19,868 2,902 22,770 2003 26,586 977 27,563 26,025 3,563 29,588 2004 31,708 932 32,640 30,546 3,102 33,647 2005 29,705 1,426 31,131 38,293 3,337 41,631 2006 30,911 1,831 32,745 45,005 3,585 48,589 2007 41,232 1,474 42,706 53,000 3,237 56,237 2008 35,323 1,518 36,841 64,148 3,170 67,318 2009 37,525 2,183 39,708 70,607 4,139 74,746 2010 46,896 1,927 48,823 99,660 7,734 107,394 2011 56,701 3,166 59,867 98,221 7,088 105,309
  10. 10. © Canvassco 2014 MEDICAL DEVICE MARKET IN THAILAND 10 2010 2011 2012 %Growth General supply 9,407 11,363 14,555 24% Ophthalmology 7,704 8,236 8,630 24% Diagnostic and Therapeutic equipment for internal medicine 8,075 10,051 11,327 18% Dental 1,947 2,525 2,535 14% Surgery 1,947 721 835 -35% Laboratory 792 851 1,059 16% Orthopedic, orthosis and disability aids 1,890 2,053 2,415 13% Medical Logistic and patient ward 412 709 785 38% Diagnostic imaging and radiotherapy 3,751 4,067 6,180 28% General equipment 597 787 1,086 35% Total 36,522 41,363 49,407 16% Medical device market in Thailand has been growing steadily on average of 16% over the past three years There are about 500 medical device importers in Thailand. Most of companies are owned by Thai with a registered capital of around THB 1 - 5 million. These companies are located mainly in Greater Bangkok Region There are also several large companies who carry a wide range of product portfolio such as Pacific Healthcare, DKSH, Berli Jucker, 3M and etc Since the last five years, top three imported sources are from the U.S.(THB 26,833 mn), Japan (THB 13,411 mn) and, Germany (THB 6,467 mn) MARKET STRUCTURE IMPORTED MEDICAL DEVICE BY TYPE (MILLION THB) Source: Global Trade Atlas
  11. 11. © Canvassco 2014 MEDICAL DEVICE PRODUCTION IN THAILAND 11 2010 2011 2012 %Growth General supply 48,673 55,384 58,956 10% Ophthalmology 25,499 26,565 23,792 -3% Diagnostic and Therapeutic equipment for internal medicine 8,855 11,185 13,470 23% Dental 3,610 3,555 3,788 2% Surgery 26 33 57 48% Laboratory 44 615 2,189 605% Orthopedic, orthosis and disability aids 358 205 207 -24% Medical Logistic and patient ward 296 405 439 22% Diagnostic imaging and radiotherapy 384 317 278 -15% General equipment 43 602 2,227 620% Total 87,788 98,866 105,403 10% EXPORTED MEDICAL DEVICE BY TYPE (MILLION THB) Local production for exporting medical device market continue to grow on average of 10% over the past three years There are total about 157 local manufacturers. About 85% are small producers with less than THB 50 mn in registered capital, 21% are mid-size producers (between 50 - 500 mn in registered capital) and only about 3% are the large producers Medical device is one of the targeted industry by the Board of Investment, Thailand to attract investors to set up production base here Incentives provided by BOI include tax exemption for machine, corporate tax exemption for 8 years and others MARKET STRUCTURE
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