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  • Three hospitals to offer cheaper infant formula

    Three hospitals to offer cheaper infant formula

    Parents may soon find it cheaper to feed their newborn babies with a move by three public hospitals in Singapore to switch to cheaper milk powder. Those who feed their babies with infant formula could find their costs halved when the hospitals offer cheaper ready-to-feed (RTF) brands to infants in hospital from July 1.

    As most parents prefer to stick with the formula their infants had been fed while in hospital, this makes it easier for them to continue with the cheaper brands after their babies leave the hospital.

    The two brands to be offered by the hospitals are Nestle’s Lactogen and Danone’s Dulac. The companies clinched a tender against 10 others to supply the hospitals with RTF formula for a year from July 1, 2018, until the end of June 2019.

    The hospitals that will bulk-buy these brands are Singapore General Hospital (SGH), National University Hospital and KK Women’s and Children’s Hospital.

    The retail prices for Lactogen and Dulac are $2.20 and $2.50 per 100g respectively, much cheaper than the six brands now used at SGH, which cost between $5 and $7.50 per 100g.

    As a result of the bulk procurement, parents would pay between $17.30 and $20.90 per kg of formula if they choose to continue with the same brands after the hospital stay, said the Health Ministry. The prices would be maintained for the duration of the contract.

    The hospitals’ move was announced yesterday by Senior Minister of State for Health Amy Khor. It comes after a furore earlier this year over the high cost of infant formula, with prices of most brands more than doubling over the past decade.

    Under the tender agreement, the retail price of the two brands would not be raised during the year specified in the tender.

    Speaking on the sidelines of a tour of SGH’s maternity and labour wards, Dr Khor said there will be significant savings for parents who need to turn to infant formula.

    Breast milk still best

    She said all infant formulas sold here provide the necessary nutrition for babies. The two that won the tender are not necessarily the cheapest, she said, as one criterion is their ability to provide RTF formula for hospital use.

    Even with cheaper formula, Dr Khor stressed that breastfeeding remains the best option for both mother and baby.

    The proportion of mothers who exclusively breastfed at the time of discharge from the three public hospitals has risen from 76 per cent in 2013 to 86 per cent today, she noted. This was largely due to greater awareness of the benefits of breastfeeding, she added.

    Associate Professor Daisy Chan, a neonatologist at SGH, said breastfeeding lowers the mother’s risk of getting breast and ovarian cancers and helps her return to her previous weight faster.

    For babies, it is the “optimal nutrition, (and ) reduces their risk of getting infections, helps them bond with their mother and is free”, she said. Prof Chan said studies also show that babies who are breastfed have slightly higher intelligence.

    But she noted that some infants do require formula, either because their mothers are not able to breastfeed or are not producing enough milk for the baby.

    SGH uses six RTF brands, which are offered on rotation to babies who need them. It charges parents a standard $1 per feed.

    Ms Nabilla Hashim, 29, whose first child, a girl, was born at SGH on Wednesday, plans to breastfeed her daughter for the first two years.

    But the bank receptionist said she may need to supplement breast milk with formula in future.

    Civil servant Teo Ee Hong, 39, who was at SGH with his wife, Ms Chin Siew Mei, 34, who is expecting their fourth child, said his children took different brands of formula, depending on what they had been given in hospital, until age three or four. He said he was not too bothered by the prices.

  • Smart hospitals to boost cloud spending

    Smart hospitals to boost cloud spending

    Frost & Sullivan predicts that by 2025, 10% of hospitals globally will have completed or be in various stages of implementing smart hospital initiatives.

    The research firm projects significant market growth and billions of dollars in revenues for four key segments, including pharmacy automation, mobile asset tracking, data analytics, and cloud computing.

    Frost forecasts the market opportunity to reach about $11 billion with the data analytics market for smart hospitals reaching revenues of $5.9 billion in 2018. The cloud computing market is expected to hit revenues of $5.1 billion.

    There is currently ambiguity around the term “smart”. Transformational Health Industry Analyst Siddharth Shah says a true smart hospital acknowledges digitization as only the first step, and focuses on three major areas – operational efficiency, clinical excellence, and patient-centricity – with technological advances leveraged for these three areas to derive smart insights.

    “Not every hospital needs to become smart in a single step. Instead, the approach they need to take is to implement smart solutions, one by one, and then allow newer solutions to integrate with existing ones in the journey toward becoming smart,” said Shah.

    “This allows hospitals to implement solutions with limited financial investments, reap rewards and ROI, and then implement the next solution.”

    As for companies, some of the most advanced solution sets are being developed by GE Healthcare for patient flow, including its “Command Center” solution for the Johns Hopkins Hospital. Also noteworthy is the ThoughtWire Ambiant platform, which has customized features, such as the Code Blue events reduction solution developed for Hamilton Health Sciences in Canada.

    IBM is developing and now marketing the “SmartRoom” concept along with the University of Pittsburgh Medical Center. Omnicell has developed pharmacy automation solutions in use by thousands of hospitals and health systems around the world.

    In terms of regional readiness for the adoption of the smart hospital concept, North America leads, followed by Europe and Asia Pacific regarding technological sophistication, regulatory landscape, spending power, and end-user readiness.

    However, the hotspots for current smart hospitals are concentrated in the Asia Pacific region, including Dubai, South Korea, Singapore and Australia, some of which cater to the medical tourism industry as well. Canada and Finland are also hotspots.

    “The two largest challenges obstructing hospitals from achieving the smart hospital vision are interoperability and cybersecurity. To truly achieve a ‘smart’ status by deriving intelligent insights, various devices, systems and networks in the hospital must ‘talk’ to one another in ways that are coherent and complete for a holistic analysis,” observed Shah.

    “Digitization brings in additional vulnerabilities in a hospital for hackers to target, making cybersecurity a challenge.”

  • IoT healthcare market to hit $10b by 2024

    IoT healthcare market to hit $10b by 2024

    The global IoT healthcare market is will grow to exceed $10 billion by 2024, Global Market Insights predicts.

    Market growth is primarily driven by the implementation of advanced digital solutions across the sector. The integration of such technology in the healthcare infrastructure is expected to streamline the operations, improvise the patient interactions and enhance the efficiency of processes.

    Increasing penetration of smartphones coupled with the improved internet connectivity worldwide is expected to fuel the growth. IoT has potential to reshape the industry due to the benefits such as remote monitoring of patients and management of facility assets.

    Increasing aging populations in Japan and several other European countries such as Italy and Germany, coupled with the rising number of chronic diseases, will drive the IoT healthcare market growth over the forecast timeline.

    Technological advancements in the sector to provide accessible and inexpensive patient care solutions widens the scope for adoption of such solutions. It is gradually transforming the sector by focusing on the way devices, application as well as people interact with each other.

    However, the lack of interoperability may hamper the IoT healthcare market growth. Interoperable systems enable share and retention of data automatically, eliminating the possibility of re-entering data each time.

    Issues such as difficulty in integration of devices made by different manufacturers, their inability to operate on other operating systems, poses challenge to mass consumerization of IoT solutions.

    In order to reach mass adoption, overcoming such risks restricting boundless connections of a connected world is a primary concern to the technology providers. Other factors such as high cost of infrastructure development followed by data privacy and security issues are predicted to curb the demand.

    Rising deployment of smart sensor technology in various systems enhances the capability of IoT healthcare market devices to collect more data associated with patient’s health. The gathered data is used to enhance the patient monitoring process and analyze it to discover new treatments for various other diseases. These technological solutions therefore help bridge the gap between the physical and the digital world.

  • Swisslog Healthcare acquires Talyst

    Swisslog Healthcare acquires Talyst

    Swisslog Healthcare, a supplier of medication supply chain solutions and services, has acquired Talyst Systems, a market leader in pharmacy automation solutions for hospitals and long-term care facilities. Healthcare providers around the world share similar challenges with delivering medications safely and efficiently. The acquisition creates an unmatched portfolio of inpatient and outpatient pharmacy solutions that transform health systems’ performance. Talyst’s AutoCarousel, AutoPack and AutoSecure Storage Solutions represent the best-of-breed in current generation pharmacy automation technologies.

    “Swisslog Healthcare and Talyst are well known for developing innovative automation and software solutions,” said Stephan Sonderegger, CEO – Swisslog Healthcare. “The two companies share a similar mission and vision and the Talyst portfolio of enterprise software and pharmacy automation products completes Swisslog Healthcare’s pharmacy automation offering in North America. This acquisition adds critical components to our solutions strategy of providing customers with end-to-end integration for the medication supply chain across the continuum of care.”

    Founded in 2002, Talyst was recognized by KLAS Research’s most recent (2016) Pharmacy Report as a leader in Enterprise Medication Management Software that minimizes medication spending. “Talyst develops customer-centric technologies that enable providers to deliver better patient care. Our culture of innovation and accountability aligns well with Swisslog Healthcare,” notes Carla Corkern, Talyst CEO. “With Swisslog we can now scale our solutions globally, taking advantage of their sales reach, manufacturing, and R&D facilities across North America, EMEA and Asia. We’re excited to be part of a strong and dedicated organization building towards an important differentiated vision for health systems and hospital pharmacies.”

    “Swisslog Healthcare and Talyst customers will benefit from a total inpatient pharmacy automation offering fully integrated with the Swisslog transport automation portfolio of pneumatic tube systems installed in 2,300 hospitals in North America. The acquisition expands our product offerings which, combined with our manufacturing expertise and extensive field service network, gives health systems unprecedented access to a complete solution including data analytics, pharmacy automation and transport automation,” notes Sonderegger. “Our respective customers will benefit from a compelling technology and services road map that leverages the extensive resources and capabilities of the combined companies.”

    With the acquisition, the Talyst executive team along with the rest of the company will join the Swisslog Healthcare organization. Talyst CEO and Chairman of the Board, Carla Corkern, has elected to pursue other opportunities. The Talyst Seattle-area headquarters will become an important technology, product and business development hub for Swisslog Healthcare North America. Swisslog Healthcare is building a new state-of-the-art North America manufacturing facility and US headquarters in the Denver-Boulder area, which is planned for occupation in early 2018.

  • 5G networks key to healthcare transformation

    5G networks key to healthcare transformation

    The transformative potential of 5G connectivity is becoming increasingly important in healthcare as patients start to demand more connected care through wearables, apps, and telehealth, according to Ericsson’s latest consumer lab report.

    The report, titled ‘From Healthcare to Homecare’, reveals consumer insights into the impact of 5G on the future of healthcare and its transformation across preventative, routine, and post-operative care.

    It shows that 5G will be pivotal in healthcare transformation, providing transmission efficiency in an ecosystem of feedback and alerts, mobility and low latency.

    For instance, in remote health monitoring, wearable devices – such as heart monitors and glucose monitors, require high frequency updates of the central data repository at low-data rates. Experts say that existing networks cannot provide the desired quality of support while connecting a large number of such devices, and they believe that 5G can address this challenge.

    The study cites data showing consumers were concerned with the reliability of health tracking devices — which could include reliability of the network they’re on.

    “As healthcare becomes more dependent on wearables and connectivity, consumers express concern about reliability. In fact, 59% of consumers say that they are concerned about poor connectivity affecting data transmission. Battery charging is another issue – 56% of consumers with chronic ailments worry about their health patches suddenly running out of battery. Fourty-two percent of cross-industry decision makers expect devices connected to 5G networks to consume less power, reducing the frequency of recharges,” the report says.

    Thus telecom operators could enable medical grade devices that connect directly to the internet rather than relying on the patient’s own smartphone.

    “Use of a centralized repository to store patient health records will expose healthcare to data breaches. Forty-seven percent of telecom decision makers say that developing secure networks to access an online central repository is a key challenge. 5G networks are expected to be secure enough to adhere to sensitive patient data regulations.”

    In addition, 5G is also expected to significantly improve connectivity. For instance, 35% of cross-industry decision makers expect 5G to provide reliable and sub-1ms latency connections, which enable haptic feedback to underpin surgeons’ capabilities to carry out remote robotic surgery.

    The report represents the results of two surveys carried out in Germany, Japan, South Korea, the UK and the US. The first was a survey of 4,500 advanced smartphone users.

    The sample is not representative of the general population, but Ericsson predicts these early adopters could point the way toward the healthcare trends of the future. The second survey included 900 hospital decision makers. The results were augmented with patient and provider focus groups held in the US and UK.

  • Business case for IoT in healthcare still wanting

    Business case for IoT in healthcare still wanting

    The Internet of Things (IoT) in healthcare will remain experimental over the 2017-2020 period, according to the latest research from Strategy Analytics.

    Strategy Analytics said IoT has the potential to provide significant benefits but must compete for a share of total technology spend. IoT will grow at 18% on a compound annual basis across 2016-2025, with annual global IoT in healthcare revenues passing $27 billion in 2025.

    However, healthcare will be dwarfed by primary processing, security and automotive segment spending in the broader IoT market over the forecast period.

    Also, security, privacy, training and business case justification for broad deployment “remain elusive.”

    “The beneficiaries of IoT in healthcare will be the patients, for whom IoT has the ability to deliver an experience that is less intrusive, less stressful and faster; but also the medical profession which may be able to operate with higher efficiency, through better knowledge of what is happening at any point in time with patients, professionals, equipment, and processes,” said Matt Wilkins, senior analyst at ABI Research.

    Chris Ambrosio, executive director at ABI Research, said that healthcare providers are actively exploring IoT in how it can help them to improve patient quality of care, lower re-admissions, and shorten visit times; the advantages IoT offers in allowing them to use analytics for things like population health management to identify at-risk patients; and how using wearables to

  • Vietnam beats China, South Africa in new healthcare ranking

    Vietnam beats China, South Africa in new healthcare ranking

    “Vietnam did very well in the study,” said Darrell West, one of the authors of the report.

    The country got the best performance in health system, scoring 19 out of 20, surpassing China and far distancing itself from Southeast Asian peer Indonesia. Nurses and midwives as well as physicians were the contributors to this high score.

    Its weaknesses are in the government’s health management capacity and infrastructure.

    Healthcare investment in Vietnam mostly comes from the public sector. To attract greater private sector investment, the country should improve transparency, make policy reforms and undertake regulatory reviews designed, the report said.

    Vietnam has a growing population, which requires better and more effective health services.

    West recommended Vietnamese leaders seek to improve its medical facilities, diagnostic systems and medical service delivery systems. These kinds of improvements will build confidence among private investors and create a climate where investors feel their financing will yield benefits.

    Vietnam’s high position in this ranking may come as a surprise for many, considering the amount of criticism directed at the healthcare system over the years. But the ranking does not simply reflect the current state, but looks at the potential of improvement brought by research and development.

  • Healthcare Tourists in Malaysia Mostly from Countries Such as Indonesia

    Healthcare Tourists in Malaysia Mostly from Countries Such as Indonesia

    In January, International Living (IL), an authority on global retirement and relocation opportunities, had put Malaysia in sixth place for its “10 Best Places to Retire” list. Part of the Annual Global Retirement Index, Malaysia received high scores in the “Healthcare” and “Fitting In” categories — the latter was due to the fact that the country was a melting pot of world communities, according to IL senior editor Dan Prescher.

    Last year, Malaysia welcomed more than one million healthcare tourists, who contributed more than RM1 billion in hospital revenue, said Malaysia Healthcare Travel Council (MHTC) chief executive officer (CEO) Sherene Azli.

    “There has been an overall growth in tourists for medical tourism. “From 643,000 travellers in 2011, the number rose to 859,000 in 2015. In terms of revenue, we recorded RM527 million and RM914 million for 2011 and 2015, respectively,” she said.

    “If we take other medical revenue into account, healthcare travel contributed between RM3 billion and RM4 billion to the country’s economy in 2015.” She said the travellers were mostly from Indonesia, India, China, Japan, the United Kingdom (UK), Australia and Middle Eastern countries.

    Among the treatments they sought were in cardiology, orthopedics, oncology, neurology, dental and fertility treatments, cosmetic surgery and rehabilitation services. MHTC is an agency under the Health Ministry that has been entrusted with the responsibility of promoting the country’s healthcare travel sector, which is a National Key Economic Area.

    This year, the MHTC aims to achieve RM1.3 billion in revenue, and potentially contribute RM5 billion to the nation’s gross domestic product through other medical travel revenue, including dental, cosmetic, wellness, logistics and hospitality services.

    “MHTC has also identified Indonesia, Vietnam, Myanmar and China as core markets based on the volume of healthcare tourists received, as well as growth potential of the respective markets.

    “Additionally, we have representatives in Indonesia (Jakarta), Myanmar (Yangon), Vietnam (Hanoi and Ho Chi Minh City), China, and most recently, India, to gain faster access to our core markets and facilitate potential visitors with enquiries and healthcare travel assistance.”

    She said the MHTC planned to increase its market penetration in those countries while aggressively raising the country’s profile in secondary markets like Bangladesh, Australia, the UK and the Middle East. The number of healthcare tourists from India, for example, had doubled in less than five years, she said.

    “In 2011, there were over 18,000 Indian travellers who sought various treatments in Malaysia. That figure rose to more than 39,000 in 2015 at a rate of 116 per cent.” She said healthcare tourism in the country had moved from strength to strength in the last few years.

    “The country was named Medical Travel Destination of the Year at the Medical Travel Awards for two consecutive years in 2015 and 2016 by the International Medical Travel Journal. “Malaysia was also named ‘Best Country in the World for Healthcare’ by IL’s Global Retirement Index for three consecutive years, from 2015 to 2017,” Sherene added.

    Sherene herself had been honoured as one of 50 outstanding women in healthcare at this year’s World Health and Wellness Congress in February — another global milestone for the country. To further attract foreign tourists to our shores for healthcare tourism, the MHTC has embarked on a “Malaysia Loves You” campaign in February.

    Launched by Health Minister Datuk Seri Dr S. Subramaniam, it aims to promote Malaysian healthcare in several key areas, namely quality, accessibility, affordability and ease of communication. At the same time, Sherene said the campaign hoped to increase global awareness on Malaysia’s potential as a leading healthcare travel destination.

    “We believe that Malaysia has all the qualities in international healthcare tourism. To top it off, it is easy for travellers to communicate with health professionals here, be it in English, Tamil, Hindi or Chinese.”

    Malaysian Society for Quality in Health (MSQH) CEO Kadar Marikar said the accreditation received by Malaysian hospitals and healthcare providers had raised travellers’ confidence in the country as a healthcare tourism destination.

    “Foreign patients will be well-assured of safe care when they seek medical care in MSQH accredited facilities. The accreditation process focuses on patient care with measurable safety outcomes, while minimising the risk of adverse events.

    “Accreditation of healthcare facilities and services in Malaysia by MSQH since 2000 has helped put in place the Standards of Services. Among others, it focuses on putting the right structures and processes, minimising risks as well as measuring performances to ensure safe patient care and outcome.”

    The MSQH accreditation programme is internationally-recognised by the International Society for Quality in Healthcare (ISQua). Kadar said the four-year accreditation programme also helped to build tourists’ confidence in healthcare industry providers.

    To boost the arrival of foreign patients to Malaysia and bolster their confidence in local healthcare facilities, he said medical healthcare/medical tourism facilitators should have a strong presence to assist patients.

    “We need to develop and certify professional medical tourism facilitators to make sure they are knowledgeable in the field.” International Islamic University Malaysia Associate Professor Noor Hazila Abd Manaf of the Department of Business Administration agrees.

    Noor Hazila co-authored a paper entitled “Medical Tourism Service Quality”, on the local healthcare tourism industry that focused on service quality, perceived value, overall satisfaction and future intention of medical tourists in Malaysian hospitals.

    “Malaysia already has a strong footing in the accreditation of its hospitals through MSQH. “The government has also established the MHTC, a one-stop centre to promote the country’s medical services abroad.

    “Although a relative newcomer, the results of promoting the industry can be seen from the increasing number of international patients coming to the country,” she said. Noor Hazila said her report aimed to identify important constituents of medical tourism, which might assist policymakers and hospital managers in understanding the industry better.

    “In order for Malaysian hospitals to continue competing on the global front and attracting more international healthcare tourists, it needs to follow the examples of leading medical tourist hospitals by widely publicising the outcome of their services on their websites as a means of communicating their technical competency.

    “For example, India’s Apollo Group of Hospitals publicises a 90 per cent success rate in more than 500 liver transplants they performed. “Similarly, Thailand’s Spine Institute at Bumrungrad International claimed a 95 per cent rate of success in its website for its spinal endoscopic surgeries performed on more than 600 patients.”

    Revealing information on technical competence, she said, could give patients a sense of assurance in quality. “However, browsing the websites of Malaysian medical tourism hospitals show a gap in the dissemination of such information.”

    Aside from this, she said it was also important for service providers to ensure a high quality of service from its medical staff.

    Tech and experience, a winning combination for Sunway Med

    Since winning the International Hospital of the Year award in Madrid, Spain, last year, Sunway Medical Centre has seen a steady growth in international patients.

    The award was presented by the International Medical Travel Journal. Sunway Healthcare managing director Lau Beng Long said the hospital recorded an 18 per cent increase in the number of international patients from 2015 to last year, with 13 per cent increase in revenue.

    “We found that there is a 30 per cent increase in healthcare tourist traffic and 12 per cent increase in expatriate patients.”

    He attributed the hospital’s success to its “people, our technology and our product”.

    “There are a couple of factors, I believe, have enabled us to clinch this award. We differentiate ourselves in the market by positioning it as the one-stop centre not just in medical services, but also the entire supply chain of medical tourism experience”.

    Sunway Medical Centre is strategically located in Sunway Resort City, which is a stone’s throw away from Sunway Hotel, Sunway Theme Park, Sunway Shopping Mall and Sunway University. This provided a comprehensive solution for patients who need a healing environment.

    “We also have a dedicated international patient centre team, which provides one-stop services for our international patients, ranging from providing treatment options, to cost estimate, hotel and transport booking, interpreting services and so on.

    “We serve international patients from more than 130 countries, and are recognised for orthopedics, digestive health, neurology, ENT and urology. “Last year, we set up our cancer, radiosurgery and nuclear medicine centre, which provides comprehensive solutions for cancer treatment. “

    He said Sunway Medical Centre was also the first hospital in Southeast Asia to have received the accreditation from the Australian Council on HealthCare Standards. “Ultimately, people are our best asset. We take pride in our specialists, majority of whom are trained overseas in Australia, the United States and the United Kingdom, and also our dedicated nursing and allied health teams.

    “With technology and experienced, SunMed is the first private hospital in Malaysia to perform total joint knee replacement surgery using computer navigation, deep brain stimulation for Parkinson’s Disease, endoluminal grafting for abdominal aortic aneurysm, cornea transplant, etc.

    “Overall we see a balanced distribution of patients coming for different treatments.” On the profile of medical tourists visiting the hospital, he said most of the patients were from neighbouring countries.

    “Again, we are seeing a fair distribution of patients from Southeast Asia, South Asia, North Asia, Middle East and the West. “Top of the list are patients from Indonesia, China, Bangladesh, Yemen, India, Australia, Pakistan, the US, Japan and Maldives.

    “A majority of our foreign patients are aged 30 and over. The length of stay will vary based on their treatment and procedure.” He said the hospital was currently undergoing an expansion.

    “Upon completion of Tower C in the second quarter of this year, there will be 600 beds at Sunway Medical Centre’s facilities, with 180 consultation suites and 1,470 parking bays.

    “We are also growing our services to strengthen our centres of excellence, recruiting more consultants and nurses to provide competent care, upgrading our facilities, and introducing more technology,” he said.

  • Vietnam plans to digitize healthcare cards

    Vietnam plans to digitize healthcare cards

    The electronic system will also make insurance payments faster and more transparent. Vietnam plans to issue electronic health security cards to its citizens verifying their right to medical services, the Government Office said on Monday.

    Just as a social security card shows that a person has a lifetime account used to calculate their pension benefits, the healthcare security card will make it more convenient for patients to access insurance plans and health care.

    The push to digitize the system is aimed at seamless healthcare delivery and insurance across the country.

    With the new system, electronic healthcare registries in all 63 cities and provinces will be synced together so that regardless of whether a cardholder changes their job, move to a different place or have pre-existing medical conditions, insurance plans will have to accept all cardholders.

    The electronic system will also make insurance payments faster and more transparent through digital transactions.

    The Vietnam Social Security Administration is in charge of developing a plan to sync health security, social security and unemployment insurance on one electronic card.

    About 75 million Vietnamese people, equal to about 81 percent of the population, have registered for the national health insurance program. The government aims to lift healthcare coverage to 91 percent of its population.

    However, it is still unclear about how the government will prevent the fraudulent use of the cards or how they will protect the privacy of patients and their medical records.

    Vietnam is also working on electronic immunization records that will make it easier to track vaccination data and make sure children get their shots at the recommended ages.

  • Indonesia campaigns for pharmaceutical after liberalization

    Indonesia campaigns for pharmaceutical after liberalization

    The government is intensifying efforts to support the country’s longstagnant pharmaceutical industry after opening up the sector to foreign investment in its latest revision to the negative investment list (DNI).

    The efforts were evident at a dialog on “Expediting the Development of Indonesia’s Pharmaceutical Industry” organized by the Investment Coordinating Board (BKPM) on Thursday that gathered together players in the pharmaceutical industry and its related sectors.

    “Most of the existing companies make medicines, whereas the raw material businesses is small. Roughly 90 percent of raw material for the pharmaceutical industry is imported from India or China. We have to change this,” BKPM investment monitoring and implementation deputy chairman Azhar Lubis said during the event.

    In a bid to encourage the raw material industry, the government has revised the DNI, which lists the sectors restricted to foreign investment. Following the revision, the government now allows 100 percent foreign ownership in pharmaceutical companies, from 85 percent previously.

    Following the issuance of the regulation, no fresh interests on raw material sector have been expressed by foreign investors, Azhar said. However, there have been 18 new licenses for investments in the pharmaceutical industry issued by BKPM from January to September worth Rp 2.1 trillion.

    Apart from campaigning for investment in pharmaceutical factories, the BKPM will also push research and development (R&D) in the sector to encourage new innovations in new medicines that are locally made, Azhar added, citing R&D centers in Singapore and Europe.

    However, industry players said the problem with investment in the pharmaceutical sector lay in the fact that there was a relatively small number of hospitals and doctors for whom the medicines would be distributed.

    “Boosting the industry does not only mean pushing for medicine production and factories. What’s also needed is hospitals, doctors and clinics as the infrastructure to feed the pharmaceutical industry,” said International Pharmaceutical Manufacturers Group (IPMG) executive director Parulian Simanjuntak.

    Investments in the pharmaceutical sector have stagnated in recent years, reaching just Rp 8.9 trillion from January 2011 to September 2016, BKPM data shows. Also, there are only 214 pharmaceutical companies in Indonesia, most of which make medicines. Just a few of them manufacture raw material for pharmaceuticals.

    “If production [of raw material] were to start in Indonesia, it would take around three years to really get going and it would definitely cost more than importing from other countries,” said Arustiyono, the director of supervision and therapeutic product distribution at the Food and Drug Monitoring Agency (BPOM).

    “The research and development phase for the chemical reactions would itself take a year,” he added.

    The pharmaceutical industry is 70 percent dominated by local players, including privately-owned Kalbe Farma and state-owned Kimia Farma, among others.

    “The stimulus package for raw material factory investments will bring about a positive impact for the pharmaceutical industry because the source for materials will shift to local sources. This will inoculate the industry from the rupiah’s fluctuations,” Kalbe Farma corporate secretary Vidjongtius said. “In this way, medicine production costs can be more controlled. This, however, is a medium to long-term project.”

  • Indonesia’s health care industry is on the rise

    Indonesia’s health care industry is on the rise

    Data from WHO Global Health Expenditure Database has revealed that, in 2014, Indonesia’s spending on health care totaled only 2.8 percent of GDP. Compared to the global average of 9.9 percent, it goes without saying that our nation’s total expenditure for health is among the lowest in the world.

    Full implementation of National Health Insurance (JKN) is targeted for 2019 and was initially been seen as the main catalyst to the country’s growth in the health care industry.

    Nevertheless, the initiative saw a challenging launch and, thanks to regulation disparities, poor infrastructure, inadequate medical staff and ultimately funding shortfalls, many analysts maintain their doubts that the program can achieve its main objective, covering 260 million Indonesians by 2019.

    While the pain experienced by the majority of Indonesians dealing with Indonesia’s health care may continue to grow for some time, this is a necessary journey toward success and all the bumps can be read as signposts on the road that the nation must travel to higher-income status.

    The government has maintained the JKN program as a top priority; hence, the challenges will eventually be overcome.

    Moreover, the spark generated by the government’s boost to the health care sector is creating abundant opportunities for all to prosper.

    Substandard health care service in Indonesia represent investment opportunities and records have shown surging demand for health and medical services since the JKN program rolled out.

    In recent years, Indonesia’s conglomerates have started consolidating and investing heavily in the hospital business.

    The likes of Siloam (backed by Lippo Group) and Mitra Keluarga (affiliated with Kalbe Farma) are leading players in Indonesia’s hospital industry. Both have aggressive growth strategies.

    According to a report by the Oxford Business Group, Siloam plans to reach total capacity of 10,000 beds with 22 new hospitals coming online by 2017, while Mitra Keluarga has raised US$372 million through one of the largest initial public offerings (IPO) in recent years, the funds will be used to expand its hospital network to 18 by 2020.

    Foreign players also find Indonesia’s market very captivating. Foreign investment limits in the hospital business have recently been revised to a level of 67 to 70 percent, so more international hospital groups can be expected to leave their footprint in Indonesia soon.

    The limits in the pharmaceutical industry are even higher: 85 percent, and given the estimation that 20 percent of total health expenditure will be allocated to pharmacy products, it was not an exaggeration when in 2015 Frost and Sullivan named Indonesia as “the most promising emerging market for pharma”.

    Another area that represents an exciting prospect for investment is stem cell therapy, already an important health commodity in countries like Russia, China and India.

    While this is certainly a new area for most investors, the potential revenue is huge, surpassing $18 billion according to a study by the Prodia Group.

    Along with economic incentives, this area will promote greater international collaboration that will be useful in the advancement of medical technology in Indonesia.

    Perhaps the talk of positioning Indonesia as one of the world’s leading destinations for medical tourism is not a wild dream anymore.

    Indonesia may be playing catch up for now to the likes of Singapore and Malaysia in ASEAN, nonetheless, it is not too late to start gaining credibility in international markets like Australia, where higher medical costs may force patients to search for more affordable, but still reliable, treatment overseas.

    Indonesia’s health care providers, hence, must prepare themselves to conform to international standards in order to win the hearts of potential foreign patients.

    Indonesia’s health care industry is expected to be worth more than $50 billion by 2020. With the influx of foreign players and the race of local players to shift gear in preparation for faster growth, the government must take an active role to ensure the upgrades to the nation’s health care are beneficial for all people of all statuses.

    Various investments in the industry must make health care more affordable and accessible, especially for those in less developed parts of Indonesia.

    In addition to the primary benefit of delivering adequate health care to the people, the government must also ensure the “side effects” that could potentially also have a larger impact on society in the long run.

    Multinational medical companies operating in the domestic market should be persuaded to develop in-country research and development centers and collaborate with local universities to train capable future human resources.

    Even the tech and startup industry can make the most of this bloom by exploring various value-added services that offer faster information access, easier interaction, better and strong enough to disrupt the industry.

    This wave has already started with the creation of medical portals, real-time health trackers and even the utilization of artificial intelligence that can help medical practitioners diagnose patient health.

  • Healthcare SCM market worth US$2.22 billion by 2021

    Healthcare SCM market worth US$2.22 billion by 2021

    A market research report Healthcare Supply Chain Management Market by Component (Software (Inventory (Order and Warehouse Management), Purchasing (Supplier, Strategic Sourcing)), Hardware (Barcode, RFID)), Delivery Mode (On-premise, Cloud) and End User – Global Forecast to 2021″, published by MarketsandMarkets, studies the global market during the forecast period of 2016 to 2021. This market is expected to reach USD 2.22 Billion by 2021 from USD 1.45 Billion in 2016, at a CAGR of 8.9%.

    This market is expected to reach US$2.22 Billion by 2021 from US$1.45 Billion in 2016, at a CAGR of 8.9%.

    Factors such as the Unique Device Identification (UDI) initiative by the FDA, rising adoption of cloud-based solutions, increasing pressure faced by hospitals to improve operational efficiency and profitability, and compliance of the G1 system standards in various countries are driving the growth.

    Moreover, the superior supply chain performance, mobile-based solutions, and counterfeiting of drugs in the pharmaceutical industry are expected to offer significant growth opportunities for players. On the other hand, the high price of the healthcare supply chain management (SCM) software and fragmented end-user market are expected to restrain the growth of this market.

    In this report, the market is segmented on the basis of component, delivery mode, end user, and region.

    Based on applications, the market is segmented into bariatric surgery, gynecological surgery, general surgery, urological On the basis of component; the global Healthcare Supply Chain Management Market is broadly segmented into software and hardware. The software segment is estimated to account for the largest share in 2016, while the software segment is projected to grow at the highest CAGR in the forecast period.

    Based on delivery mode, the market is segmented into web-based, on-premise, and cloud-based delivery modes. The web-based segment is estimated to account for the largest share of the global Healthcare Supply Chain Management Market in 2016. Web-based models help to reduce operational and administrative expenses. This advantage is contributing to the large share of this segment.

    Based on end user, the market is broadly segmented into manufacturers, providers, and distributors. The manufacturers segment is estimated to account for the largest share of the global Healthcare Supply Chain Management Market in 2016. The providers segment is projected to grow at the highest CAGR.

    Geographically, the Healthcare Supply Chain Management Market is divided into North America, Europe,Asia-Pacific, and the Rest of the World (RoW). In 2016, North America is estimated to account for the largest share of the Healthcare Supply Chain Management Market, followed by Europe, Asia-Pacific, and the RoW (rest of the world). The North American market is also projected to grow at the highest CAGR and serve as a revenue pocket for companies offering healthcare supply chain management solutions.

    Prominent players in the global Healthcare Supply Chain Management Market are SAP SE (Germany), Oracle Corporation (U.S.), Infor Inc. (U.S.), Global Healthcare Exchange (GHX) (U.S.), McKesson Corporation (U.S.), TECSYS Inc. (Canada), Jump Technologies, Inc. (U.S.), and LogiTag Systems Ltd. (Israel).

  • Indonesia outlines strategy for sports development

    Indonesia outlines strategy for sports development

    Indonesia President Joko Widodo on Wednesday stressed on the development of sports which have the potential to garner medals at international championships, including badminton, archery and weightlifting.

    “Prioritise development of games which have already shown achievements,” President Widodo said at the State Palace after congratulating the country’s medallists at the Rio Olympics, including the gold medallists in the badminton mixed doubles.

    In addition to that one gold medal, Indonesia also collected one silver medal and one bronze medal in weightlifting competitions at the Olympics, improving from the achievement at the Olympics in 2012, during which only one silver medal and one bronze medal were secured, reports Xinhua.

    Widodo added that the development “includes the improvements of facilities, infrastructure and training camps”.

    “If it is better undertaken with a long strategy, more gold medals will be able to be garnered,” he said.

    Widodo said that he had coordinated with the sports minister on how to materialise the new strategy.

  • New Zealand’s Ministry of Health approves MS cloud services

    New Zealand’s Ministry of Health approves MS cloud services

    New Zealand’s Ministry of Health has officially approved the use of cloud services for advancing the country’s electronic health service capabilities.

    Specifically, Microsoft’s core cloud services Azure, Office 365 and Dynamics CRM Online have been deemed to meet the ministry’s requirements for storage of personal health information.

    Barrie Sheers, Managing Director for Microsoft New Zealand, said the government’s decision to use Microsoft’s Trusted Public Cloud services will be transformative for the eHealth agenda in New Zealand.

    “New Zealand’s health tech industry is today worth $1.3 billion to the local economy, and our country significantly punches above its weight on the international stage with health tech innovation,” he said.

    “With leading exporters like Orion Health and more than a hundred other smaller independent software vendors, the health tech sector in New Zealand is one that continues to grow and provide a burgeoning opportunity for export to the fast growing global health market.”

    With the advent of personalized medicine, genomics, intelligent sensors, advanced diagnostics and laboratory tests, data usage by health organizations will also increase as the sector builds ever more advanced models of the human body, according to Gabe Rijpma, senior director of health and social services Asia at Microsoft.

    “Being able to process all this data, store it, analyze it and make intelligent predictions on the results will usher in a new era of healthcare that will radically transform the way care is both diagnosed and delivered,” he said.

    Rijpma who is based at Microsoft NZ’s Christchurch office, said the local health tech sector has already been rapidly adopting the public cloud to develop futuristic solutions, but they have not been able to sell those solutions in international markets until now.

    “Now the local health tech sector will be able to use New Zealand as a fertile ground for new innovation and also deliver their world firsts here, too,” he added.

  • Panasonic Healthcare Indonesia Upbeat Over Export Opportunities

    Panasonic Healthcare Indonesia Upbeat Over Export Opportunities

    Panasonic Healthcare Indonesia, a local producer of equipment used in the health care industry, has set a target to increase sales by 70 percent over the next four years on the back of growing exports.

    The company, which is a subsidiary of the Japanese business group, eyes $88 million in sales by 2020, up from $51 million last year, it said in a statement on Thursday (19/05).

    Panasonic Healthcare also seeks to increase its workforce to 799 from 611 currently during the same period to raise production on blood glucose monitors, medical imaging monitors, dental intraoral cameras, heated incubators, and ultra-low temperature freezers.

    Parent company Panasonic Healthcare Holdings has acquired Bayer Diabetes Care, a leading global producer of blood glucose monitoring systems, earlier this year. The acquisition has opened more opportunities for the local unit to tap offshore markets.

    “Panasonic Healthcare Indonesia has great potential to increase exports,” the company said in a statement.

    Exports currently account for 88 percent of the company’s sales.

    Gobel International, which is controlled by former trade minister Rahmat Gobel, has a 5 percent stake in Panasonic Healthcare.