Implementation of MediShield Life (National Health Insurance System) by the government, expansion of service and product portfolio by major public and private hospital chains, rising focus on geriatric care services and increased adoption of healthcare IT were the key factors driving growth in Singapore hospital Market.
The report titled “Singapore Hospital Market Outlook to 2022 – by Public, Private Hospital & Not-for-Profit Hospital, by Inpatient & Outpatient, by Acute, Community & Psychiatry Hospitals” by Ken Research suggested a growth at a CAGR of 3.9% in revenue in Singapore Hospital Market by 2022.
Singapore hospital market inclined at a positive CAGR during 2012-2017. The market is dominated by the public sector which offers specialized and integrated services at affordable rates. The private sector majorly focuses on elite class which prioritizes speed, comfort, assurance of best medical care and privacy.
Macro trends positively affecting the hospital market include ageing population, rising chronic disease prevalence, escalating healthcare needs and increasing complexity of care needs. The market witnessed higher inpatient admissions, improvement in average revenue per inpatient admission due to higher complexity of medical conditions and increased preference for day procedures and outpatient services. Due to increasing ageing population, both public and private hospitals have invested in offering specialized services for the geriatric population. For instance, SingHealth introduced Steps to avoid falls in Elderly (SAFE) Programme and Singapore General Hospital introduced Community Care Programme in 2016 to aid the old age medical conditions.
Backed by greater demand, major hospitals have invested in expansion strategies. For instance, IHH Healthcare witnessed positive growth in revenue due to ramp up of Mount Elizabeth Novena Hospital as the hospital added 30 beds. Most of hospitals in Singapore have undertaken organic methods of expansion. Public hospitals have extended their capabilities to provide higher grade services at affordable prices. For instance, SingHealth established SingHealth Duke-NUS Disease Centres (SDDC) for diabetes, blood cancer, breast, head & neck, lung and liver transplant in 2017. Raffles Hospital extended its service portfolio to include skin, aesthetics and women related services.
The market faces certain challenges in terms of slowdown of medical tourism, retention of quality doctors, rising healthcare inflation and growing competition which has led major hospitals to shift their focus on expansion into neighboring countries such as China and Malaysia.
The market is expected to witness an increase in number of outpatients in public and private hospitals due to rising focus on preventive care services and growing awareness about various medical diseases and prevention.
For more information on the research report, refer to below link:
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Ankur Gupta, Head Marketing & Communications