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Asia-Pacific Hospital Market Evolves into Fertile Ground for Inventive Business Models, Finds Frost & Sullivan
Date:7/20/2015

KUALA LUMPUR, Malaysia, July 20, 2015 /PRNewswire/ -- A growing aged population as well as the burden of increasing chronic and infectious diseases are creating tremendous opportunities for the hospital sector in Asia. The rise of medical tourism has further spurred the revenues of private hospitals in Thailand, Singapore, India and Malaysia.

New analysis from Frost & Sullivan, Asia-Pacific Hospital Outlook 2014(https://www.frost.com/p889), finds that total healthcare expenditure in Asia-Pacific stood at US$1.602 trillion in 2014 and is expected to grow at 9.6 percent over next five years. Profit margins in hospitals across Asia can run up to 20 percent to 25 percent in contrast to the high single digits in the United States or United Kingdom.

For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/APAC_PR_Jeremiah_P889-54_04May15.

"Improved operational efficiency and higher economies of scale have contributed to the spectacular financial performance of several private hospital chains in Asia-Pacific," said Frost & Sullivan Healthcare Industry Manager Nitin Dixit. "Real estate trusts and private equity firms, followed by pharmaceutical companies and medical device manufacturers, play a significant role in strengthening the investment and consolidation projects of private hospitals."

However the private hospital industry, in general, continues to grapple with challenges such as the shortage of qualified medical personnel and lack of private medical insurance. Currency fluctuations and policy uncertainty also remain threats to steady investments.

Nevertheless, the increasingly competitive market that is flooded with new domestic players and foreign healthcare providers is the ideal launch pad for business model innovations.

"Private healthcare providers in the region are targeting 'value' customers by offering multiple pricing options for services," observed Dixit. "Healthcare institutions with scalable business models will see huge fund inflows from foreign and domestic investors."

Eventually, expansion will move to tier II and tier III cities in countries with a high under-served population, such as India and China, thus opening up additional avenues for revenue generation in the hospital market.

Asia-Pacific Hospital Outlook 2014 is part of the Advanced Medical Technologies(ww2.frost.com/research/industry/healthcare/advanced-medical-technologies) Growth Partnership Service program. Frost & Sullivan's related studies include: Indonesia Healthcare Outlook, Healthcare IT Spending in Australia, and Multi-parameter Patient Monitoring Market in Asia-Pacific. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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Asia-Pacific Hospital Outlook 2014

P889-54

Contact:
Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61 (02) 8247 8927
F: +61 (02) 9252 8066
E: djeremiah@frost.com

Carrie Low
Corporate Communications – Asia Pacific
P: +603 6204 5910
F: +603 6201 7402
E: carrie.low@frost.com

Melissa Tan
Corporate Communications – Asia Pacific
P: +65 6890 0926
F: +65 6890 0999
E: melissa.tan@frost.com

Twitter: @FrostSullivanAP 
Facebook: FrostandSullivan 
Linkedin: http://bit.ly/FrostSullivanAPAC 

http://www.frost.com


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