Updated on 4 July 2016
An in-depth analysis of the Singapore Healthcare market by Japanese market analysis firm Nomura Holdings has revealed that Singapore hospitals are set to gain from demand for private healthcare as they are bound expand in the region.
According to the Economist Intelligence Unit, Singapore ranks second globally for healthcare outcomes, despite spending less on healthcare as a fraction of GDP than any developed country. Singapore has historically managed costs by creating a hybrid system that allows both public and private hospitals to survive, ensuring that patients contribute towards their healthcare spending.
Some key pointers on Singapore's healthcare market:
Singapore is a good example of a nouveau riche economy coping with the effects of rapid development. The country's share of population aged 65 and older is at 11% and continuing to increase, while its life expectancy also continues to rise and is currently at ~83 years. With healthcare spending as a % of GDP being among the lowest in the world, Nomura's report observes room for further growth as an ageing population requires more healthcare services.
Nomura has analyzed that Singapore private hospital sector will also benefit from ageing demographics, rising population, crowded public hospitals and the impact of medical tourism. Revenue growth for hospitals will come from two key factors: 1) revenue intensity (price per patient per day) should continue to rise due to the ageing population requiring more expensive surgeries, increasing use of medical technology, growing expatriate population, changing mix of medical tourists and healthcare inflation; and 2) increase in the number of operational beds as the hospitals cope with increasing demand.