1. Rapid Urbanization, growing GDP, Ease of doing business, increasing healthcare budget and Improvement in quality of life is contributing towards growth of the industry.
Clinical Laboratory Market in Philippines was increasing at a steady rate of 2 to 3% before 2020. Then due to covid-19 pandemic, there is a spike of 50% in revenue. Due to covid-19, the covid-19 tests spiked and a large chunk of the revenue in 2021 and 2022 came from covid-19 tests which are quite costly too as compared to other tests. The industry grew at a compounded annual growth rate of 5.16% from 2017 to 2022. Rapid Urbanization, increasing GDP, ease of doing business, increasing healthcare budget and improvement in quality of life is contributing towards growth of the industry.
2. Over-Regulation, migration of workers, expensive tests among others are some challenges in the industry.
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Poor Internet: Philippines is a country with one of the slowest internet speeds in the world. Additionally, the cost of internet is also high in Philippines. A 2020 Digital Quality of Life Index ranked the Philippines 82nd in terms of internet affordability out of 85 countries.
Brain Drain: Filipinos are well educated and skilled but a lot of health workers migrate to other countries which leads to dearth of health workers in Philippines.
Lack of Affordability: Universal Health Policy is still a Blackbox for many people. Various healthcare tests are still very expensive for people that they prefer to not get tested as cost of getting sick is high and people can’t afford it.
3. There are various growth drivers like Universal Healthcare coverage and technological advancements in the industry which can open up various untapped opportunities in the industry.
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- Government is increasing it Healthcare budget every year which is promoting this industry. Additionally various countries are also providing assistance in Philippines Healthcare sector.
- PPP Model is common in healthcare segment of Philippines. After the pandemic, it has become more prevalent due to cash crunch.
- E-Health is emerging in Philippines especially after the pandemic. More number of patients can be catered through online mode. It reduces paper work, errors and makes it easier to create awareness.
- Healthcare industry in Philippines is gradually adopting advance technologies to automate the procedures and to diagnose and treat complex health issues. Health Technology Assessment Council (HTAC) has been formulated to perform technology assessment from time to time.
