Covid-19 to Give Doses of Reality Check to Private Healthcare?
Date : Sep 18, 2020 Author : PMR Editorial Staff
According to Persistence Market Research, the global private healthcare market is slated to witness an upswing between 2020 and 2030. Private healthcare encompasses acute medical care, private medical insurance, psychiatric care and primary care, and long term care.
. Private healthcare, as the name suggests, gets its funds from private insurance policies and also from “out-of-pocket” expenses. The private healthcare sector harps on long-term healthcare. In fact, it differs from country to country. A plethora of advantages coming through private healthcare are bound to keep the cash registers ringing on the count of private healthcare market going forward. Some of these advantages include:
- At Liberty to choose the doctor
The private healthcare system gives the patients flexibility with respect to choosing doctor along with medical facility. It’s all the more advantageous when patients wish on having the same doctor every time.
- Wait Times? Things of the Past!
If the patient is subject to surgery that is mandatory but not at all life-threatening, long wait times are to be faced. However, private health insurance system enables shorter wait times as merely paying somewhat extra for quicker attention could serve the purpose.
- Enhanced Facilities
It’s a known fact that as public system has governments’ funds involved, there is minimal access to facilities (public insurance costs less than private insurance). The overcrowded nature of public healthcare facilities and hospitals does not allow each and every patient to avail even comfort amenities. Private healthcare facilities, on the other hand, are well-maintained, which helps medical care in reaching out to the person insured.
How about Medical Tourism?
Medical tourism has seen a spike in the last few years. This factor is expected to positively influence the private healthcare market. The countries emerging as popular medical tourism destinations include Malaysia, Colombia, Taiwan, Turkey, Czech Republic, South Korea, Brazil, Singapore, Mexico, Costa Rica, Spain, India, and Thailand. Thailand is home to 450+ private hospitals. As such, the countries mentioned above are expected to be the basic revenue generators with regards to private healthcare in the years to come.
Impact of Covid-19 on Private Healthcare Market
The outbreak of Covid-19 has shifted the priorities of healthcare industry from mere moneymaking to staff quarantine and social distancing while attending the patients. Though the supply-chain failures have taken a toll on healthcare spending by private healthcare, they are trying to cope-up amidst Covid-19 crisis with merging the tertiary-care, multi-speciality, single speciality, or even diagnostics business into “one”, so as to have a sustained cash flow (even after reduction in profit margin). Plus, the governments are mandating treatment of Covid-19-positive patients and percolation down under (to private healthcare) is making the generation of revenue difficult.
Besides, private insurance companies have started doling out policies covering Covid-19 care as well. They are better known as “Covid-19 Private Healthcare Services”. These efforts in the direction of recovery are expected to pull through the year 2020. The year 2021 is expected to hold the hopes high on this count.
The key players in the private healthcare market include Capita Health and Wellbeing Ltd., MedLife, Hca International, Bupa Insurance Ltd., and Bupa Care Homes Plc.
How would the Geographies Respond?
The period between 2020 and 2030 is expected to see a staggering growth of private healthcare market in Latin America and the Asia-Pacific, especially due to the major overhaul experienced in terms of medical tourism (as mentioned above). Moreover, North America and Europe are already at the peak of private insurance provision. As such, in the UK, the CAGR is expected to be just 2.8%. The inclination herein is more towards self-pay elective procedures.
The ongoing pandemic has compelled the market participants and research centres to devise vaccine for Covid-19. However, this flow comes with a harsh realization all across that just being available on medical grounds does not suffice. It should be followed by preventive/corrective measures, so as to keep the momentum of end-users as well as the healthcare providers.