HEALTHCARE MARKET IN SOUTHEAST ASIA REGION: STRUCTURE AND COMPETITION

Abstract

ABSTRACT

Background: The demand for healthcare in Southeast Asia is growing sustained by demographic diseases transition and rising incomes due to economic growth and globalization. Structure of the healthcare market has effect on competition and efficiency.

Materials and Methods: Scoping review method adopted with articles identified using Scopus, Google Scholar, PubMed and ScienceDirect databases via the keywords “healthcare market”, “Southeast Asia”, “market structure” and/or “competition”. Final 15 articles were reviewed of those published only in English in the last 15 years.

Results and Discussion: Majority Southeast Asia countries are striving to provide universal healthcare coverage straining resources and affecting quality. Forces in the market has pushed demand for higher quality care. General share of private healthcare expenditure, 55% of the total healthcare expenditure, is higher than that of public. Healthcare systems are moving from a publicly dominant health service provision towards greater private sector involvement. The public and private financing among the SEA countries health systems are dynamic and diverse where national health insurance (NHI) with various social security schemes exists to provide basic access to healthcare. Private health insurance is also growing. Differences in healthcare financing is driven by the growing demand for higher quality healthcare. Changing lifestyles, an aging population, and rising income have led to increased prevalence of non-communicable diseases. Increasing educational levels and aging populations led to increase health demand which affects the market and competition. Market failures in healthcare has pushed for more government intervention and growing effect of globalization has contributed to high care cost. Health systems have to adapt to rapid transformation of the market.

Conclusion: The health system in SEA countries consists of the public and private sector working together in the provision of health service delivery with bigger private market share. Epidemiological transition of disease, an aging population and increase demand for high quality care pushes the competition in the healthcare market.

Keywords: Healthcare market, Southeast Asia, market structure, competition