Bangkok--21 Sep--PwC Consulting
New digital healthcare models based on cloud solutions and open-source medical record systems will make healthcare access, quality, and safety more affordable, according to a PwC study.
The Digital Healthcare Leap says that while Traditional Electronic Health Records (EHR) for collecting and sharing patient and population health information are popular in developed markets, they require huge up-front costs to purchase, install, and maintain. The adoption rate for these systems in emerging markets has therefore been low.
In the next few years, big changes in the healthcare market in emerging countries are expected because new innovations, such as telemedicine, mHealth applications, and e-prescriptions, will make it easier to create and maintain electronic health records at a lower cost, the study shows.
With fewer sunk costs and regulatory hurdles, emerging markets are more likely to adopt these solutions quicker than established markets.
David McKeering, Partner, PwC South East Asia Consulting, said that digital healthcare can dramatically improve an organisation's productivity and, in turn, provide benefits in terms of both patient outcomes and the bottom line.
"If costs can be made affordable, digital health could be an answer to challenges faced by emerging markets to achieve sustainable growth and leapfrog developed nations to provide quality, affordable, universal, and patient-centric care," he said.
In the US, traditional EHR implementation costs for hospitals can be as high as US$14,500 per bed with annual operating costs of US$2,700 per bed.
Inroads have already been made in some emerging markets. For example, the Philippines has implemented the Community Health Information Tracking System (CHITS), an open-source electronic medical records system for government health facilities. The Philippines and Malaysia are both moving toward cloud healthcare systems for both public and private hospitals.
"The benefits of digital healthcare can be felt beyond patients," said David Wijeratne, PwC Growth Markets Centre Leader.
"By assisting the prevention of illness and supporting the provision of care through alternative locations such as clinics, fewer new doctors and nurses will need to be trained and fewer additional beds and hospitals created. This can help to reduce the overall financial healthcare burden on governments in emerging markets, enabling them to fund other key areas of the economy," said Wijeratne.
Healthcare spending in emerging markets is on the rise
Healthcare expenditure in emerging markets is expected to grow at a compound annual growth rate (CAGR) of 9% between 2015 and 2020 due to rising incomes and a growing middle class.
As lifestyles change, people are likely to spend more on healthcare and demand better services, access to new tools, and better health information.
Underdeveloped infrastructure and an acute shortage of healthcare professional resources are becoming priority issues in emerging markets, where 75% of deaths occur due to chronic diseases such as cardiovascular, cancer, and diabetes.
The challenge for healthcare providers
Digital healthcare isn't just about technology, however. It's about new ways of solving healthcare problems, creating unique experiences for patients, and accelerating the growth of healthcare providers.
Hospitals and healthcare providers face the challenge of integrating and connecting existing systems with new digital technology to generate meaningful data and insights for their clients.
Vilaiporn Taweelappontong, Lead Partner for PwC Consulting (Thailand), commented that a shortage of healthcare professionals, infrastructure issues, and an aging population will continue to be a challenge for the country.
New digital healthcare models should make it easier for Thai healthcare providers because they'll be able to access and make use of the data needed to provide quality services and accurately predict healthcare trends.
"This isn't just a great opportunity to boost company revenue, it can also help to raise Thailand's health standards as a whole," Vilaiporn said.
By 2030, 4.1% of the Thai population is expected to be diagnosed with diabetes, rising from 2.3% in 2012, according to the PwC study. By 2050, 30% of the total population is expected to be older than 65.
To succeed, healthcare providers need strategies that harness technology to bridge time, distance, and the expectation gap between consumers and clinicians. All in all, this will help companies to gain trust and build healthcare delivery services that truly respond to patient needs.