On the demand side, the patients/consumers in emerging
markets are becoming more discerning around their own health
and customer experience has become a key motivator for
providers. Healthcare providers that fail to adapt to this
consumer shift will risk consumers turning elsewhere to have
their health needs met. For example, in Indonesia, patients are
increasingly travelling to neighbouring countries such as
Malaysia and Thailand to access better healthcare services.
On the supply side, the healthcare system in the emerging
markets is characterised by underdeveloped infrastructure and
faces an acute shortage of resources (see Figure 2). Governments
are looking to improve healthcare access and affordability. They
are implementing universal healthcare coverage and increasing
national budget allocated to healthcare to upgrade the existing
facilities as well as to add new facilities. However, considering
the gap and what is needed to bridge it, the traditional model for
growth would not be sustainable.
For example, Indonesia is looking to expand its national
insurance programme to all its citizens by 2019. In 2015, it
allocated 5% of its national budget to healthcare.9 However, it is
already facing a funding gap and has an acute shortage of
healthcare resources. It would need an additional ~900k hospital
beds and ~700k physicians to provide healthcare services
comparable to those available in OECD (Organisation for
Economic Cooperation and Development) nations. To ensure the
long-term sustainability of its national healthcare program,
Indonesia needs to look at innovative technology and disruptive
business models.