May
5
Aviva Improves International Medical Insurance Policies
Filed Under Aviva, International Healthcare | 2 Comments
On May 4th 2011, Aviva PLC, the world’s sixth largest insurance group, announced an array of benefit enhancements to further improve upon their award-winning international private medical insurance services.
To better meet the needs of their expanding base of international clients, Aviva has been upgrading its international private medical insurance products. Aviva’s ‘International Solutions’ modular private health insurance products have been specifically designed to cover globally-mobile people who are living and working outside their country of nationality, such as expatriates. The policies offer flexible coverage options to handle the large discrepancies in cost and quality of healthcare available when living overseas. A recent study conducted by Aviva concluded that medical coverage issues have remained a key concern in customers’ travel planning.
Under the company’s new updates, International Solutions will raise the overall core benefit limit from £1.5 to £5 million (US$2.4 to US$8.2 million) and the previous newborn lifetime cover of £20,000 (US$33,000) for 112 days will improve fivefold to £100,000 (US$165,000) for 112 days. Routine chronic cover annual benefit has been further doubled from £7,500 (US$12,400) to £15,000 (US$25,000), while the medical practitioner annual benefit limit has been increased from £1,500 (US$2,480) to £2,500 (US$4,130).
In addition to raising the limits of their international offerings, Aviva has transferred a number of benefits from its supplementary cover options into the core cover for International Solutions products. This includes coverage for vaccinations, which had previously only been available to customers purchasing the Wellness Option module. There is also now an option to remove compulsory per claim excess on individual insurance policies.
Several of Aviva’s optional benefit packages have also been updated. The maternity option benefit cap has been lifted from £7,500 (US$12,400) to £10,000 (US$16,500) and there is now an increased annual compensation limit for consultations with a specialist, diagnostic tests and specialist-referred surgical procedures and physiotherapy, rising from £1,000 (US$1,650) to £2,500 (US$4,130). Improvements have also been made to dental and optical services, as well as increased out-patient service options for both individual and corporate International Solutions insurance policies.
To complement International Solutions’ coverage enhancements, Aviva has added a StandbyMD medical consultation service. This exclusive arrangement grants Aviva customers 24 hour access to a physician offering medical support and advice. The healthcare concierge service is available through 4,000 cities, across 86 different countries worldwide. StandbyMD provides international health insurance customers with prompt telephone access to a qualified physician. Policyholders can also elect to arrange face-to-face consultations or home visits.
Additionally, a new repatriation benefit rider has been developed for expatriate customers with the compassionate travel option, which will enable policyholders to return to their home country (or country of nominated residence) if certain medical treatment is not available locally. If a policyholder possessing the benefit is evacuated, Aviva will now provide compensation for someone to accompany them on their journey, even if the individual in question does not possess an Aviva international health insurance policy.
For expatriate clients, Aviva has introduced a new electronic service which will enable customers to keep important health records and allow prompt access to said vital information while abroad. The Aviva ‘My Health Passport’ is available through two different formats: a small software version used to store practical information such as personal details and GP and insurance contact information, and a printed booklet which covers more comprehensive health information.
Aviva has set up a new provider network in the United States through a partnership with Miami-based Olympus Managed Healthcare. This arrangement incorporates an additional 6,000 hospitals, over half a million doctors and 57,000 pharmacies into Aviva’s health provider network across the US. Aviva policyholders will be able to locate a qualified American doctor or hospital through the comprehensive online network. If customers choose to go within the health provider network they will have their bills settled directly by Aviva, removing the need for individuals to handle costly medical bills themselves.
Olympus Managed Healthcare are market leaders in claims management, handling over 125,000 claims a year on average. Aviva believes that this joint venture will provide customers with additional security, dedicated support and improved access to healthcare in the United States.
Teresa Rogers, international business lead of Aviva UK Health, commented on the inception of International Solutions policy updates: “By listening to our intermediaries and customers, we’ve been able to focus on improving the right things. We’ve enhanced the benefits and support that our customers tell us are most important to them. This not only includes increasing monetary limits, but also adding expert support services such StandByMD to further improve the peace of mind our customers receive from their policy.”
All new benefits will become available from July 2011 for both new customers and existing policyholders looking to renew their International Solutions service.
Aviva has been very proactive in expanding and upgrading its operations to attract more potential clients worldwide. Aviva has established a presence in many of the increasingly lucrative Asian insurance markets through joint ventures with locally based insurance companies in order to capitalize on the rising demand for insurance products and services in the region. The company has been able to maintain growth across key markets and will look to further improve upon its level of service to sustain strong performance through 2011.
Insurance Company Mentioned
Aviva
Europe’s fourth largest insurance company, with more than 300 years of experience in the global insurance industry, Aviva is committed to the safety and satisfaction of its customers. They sell a broad range of insurance products including motor and property insurance, protection and health insurance, business insurance, life insurance and pensions.
Olympus Managed Healthcare
Olympus Managed Healthcare offers medical claims administration and cost containment services in the international marketplace. The company also provides third party administrator, call center, and consultations services, as well as other specialty programs. Olympus Managed Healthcare operates through a network of doctors and hospitals around the world. The company was founded in 1994 and is based in Miami, Florida.
Standby MD
StandbyMD is a healthcare concierge service that provides insured persons with personalized physician oriented access to healthcare services 24 hours a day, seven days a week and includes an assortment of both hands-on and referral based medical solutions.
May
3
New Health Screening Requirements for Expats in UAE
Filed Under Expat Insurance, International Healthcare, UAE Insurance, Uncategorized | 3 Comments
Last Sunday, the UAE ‘s Ministerial Service Council, chaired by Shaikh Mansour Bin Zayed Al Nahyan, the Deputy Prime Minister and Minister of Presidential Affairs, announced that expatriate workers who want to work in the UAE must get medical tests done in both their home countries and in the UAE prior to receiving a work visa for the emirate.
Many expatriate workers try to cheat the system by providing a fake medical test result from their home country. The new system will curb the number of workers, who slip into the UAE work force with fake certificates, by mandating re-tests once the workers arrive in the UAE.
The Ministerial Service Council has ordered the Ministry of Health to prepare and implement the legislations necessary to put the new system into effect. Expatriate workers, who bring communicable diseases into the UAE, have been a long-term issue for the council.
Another challenge that the council fights in preventing expatriate workers with communicable diseases from entering the country is internal corruption. Recently eight people, an Emirati health official, her uncle, and six others, were accused of accepting bribes and forging health certificates for individuals with infectious diseases.
The 25-year old Emirati woman, who worked for the Dubai Health Authority (DHA), is charged with accepting 30,000 Dhs ($8,167 USD) in bribe from her 42-year old Indian uncle to forge and issue health certificates to expatriate workers who have communicable diseases.
The uncle owns a typing center, which he is accused of working out of to distribute clean medical certificates to people with infectious diseases, ranging from hepatitis to Acquired Immuno-Deficiency Syndrome (AIDS). Prosecutors claimed that the 25-year old niece would abuse her authority and position to stamp certificates with a free-of-communicable-diseases stamp during her night shift.
Another two DHA clerks, a 28-year old Iranian and a 30-year old Indian, are also charged for accepting 45,000 Dhs ($12,251 USD) from four Pakistani workers to forge similar health certificates.
As of Monday, the Emirati woman has pleaded not guilty before the Dubai Court of First Instance. Her uncle also pleaded not guilty as he defended himself in the courtroom, which was presided by Judge Hamad Abdul Latif Abdul Jaward.
The 28-year old Iranian, 30-year old Indian, and one of the four Pakistani workers have too pleaded not guilty, while the other three Pakistani workers were not present for Monday’s trial.
An Emirati second lieutenant testified that the Dubai Police’s CID was informed that an Asian suspect was responsible for forging health certificates at one of the DHA’s fitness centers. He also notes, “We arrested the uncle who ran a typing center. During interrogation, he admitted that he collected from one of the Pakistani workers applications for individuals with infectious diseases and needed to renew their residence permits or have one issued.” The lieutenant also claimed that the uncle would charge around 500 Dhs to 1,000 Dhs ($136 to $272 USD) per application.
He goes on to say, “We detained one of the Pakistani individuals, who immediately admitted the two clerks, who worked in fitness centers, used to issue for him the forged certificates.”
Prosecution records showed that the confession was confirmed by another one of the Pakistani workers after he was arrested.
Although the new system cannot prevent DHA health officials from forging health certificates, it can deter expatriate workers who have infectious diseases from coming into the country with false test results and help relieve the pressure on the UAE healthcare system.
Any expatriate who wishes to work and live in the UAE is required to get a health check to see if he or she has HIV/AIDS, syphilis, or pulmonary TB. Housemaids and nannies will also be subjected to a pregnancy test, while kindergarten school employees, barber shop, health club, and restaurant workers will also have to test for hepatitis B.
The Ministerial Service Council hopes that the new system will lessen the stress and expenses on the UAE healthcare system, which has to treat all patients with communicable diseases before deporting them. The number of people waiting to get tested is also expected to drop as expatriate workers will be deterred from trying to get into the country with faked test results. DHA clinics have been so busy recently that some have suffered a breakdown in services.
Apr
19
A+ International Insurance May Not Offer Renewals
Filed Under CIGNA, Expat Insurance, Health Insurance, Insurance Company, International Healthcare, Medical Insurance, Switzerland, Vanbreda | 2 Comments
It has emerged within international private medical insurance industry that A+ International Insurance may not offer policyholders the option of renewing their medical insurance policies in the future.
A+ International Insurance’s decision to not offer clients a renewal on their IPMI policies may be due to Cigna’s purchase of Van Breda International; Van Breda International was integral to A+ International’s plan offerings and policy administration.
Cigna, a leading US based international insurance provider, purchased Vanbreda International in August 2010 in order to access the Belgian insurer’s international reach.
A+ International’s partnership with Vanbreda International is through Justitia NV. Justitia, an independent insurance company within the Vanbreda Group of companies, is responsible for underwriting A+ International’s international health insurance plans.
Justitia NV generated premium collections of EUR 18.5 million (US$ 26.3 million) in 2008.
While A+ is a relatively new entry to the global health insurance market, the company does have a significant number of policyholders worldwide; the potential denial of renewal terms to existing customers may leave a substantial number of consumers without adequate medical insurance coverage.
A+ policyholders are advised to contact the company, or their intermediary, in order to understand their health insurance options in the event that they are not offered a renewal of their current policy.
At present there has been no official confirmation from A+ International Insurance regarding future business, but policyholders who have contacted the company have been informed that there may not be renewal terms on their policies.
Apr
15
Worldwide Takaful Insurance Market Predicted to Grow by 31 Percent in 2011
Filed Under Africa, International Healthcare, Life Insurance, Medical Insurance, Middle East, UAE Insurance | 8 Comments
Last Saturday at the sixth Annual World Takaful Conference in Dubai, Ernst and Young predicted that the worldwide Takaful insurance market would reach a value of $12 billion USD in 2011; the prediction was announced in the Ernst and Young World Takaful Report 2011: Transforming Operating Performance, and represents an increase of 31 percent from $9.15 billion in 2010. Takaful, an Islamic-compliant insurance concept, is a rapidly growing industry concentrated mainly in Saudi Arabia (making up $3.86 billion USD of the industry in 2009), Malaysia ($1.15 billion USD), UAE ($640 million USD), South East Asia, and North Africa.
In the past year, most GCC Takaful markets have slowed down. “The Takaful industry and its core markets have experienced another challenging year, where positive signs of economic recovery and improved business sentiment were shaken by the socio-political uncertainty witnessed across the Middle East and North Africa (Mena) region in the first quarter of 2011,” said Ashar Nazim, an executive director and Islamic financial services leader at Ernst and Young.
Despite the slowdown in the sector, global growth estimates are predicted to remain on track to reach $12 billion in 2011. “The industry’s not without risk, but its potential remains an important feature of Muslim emerging markets for many indigenous and global insurance players,” said Nazim. He goes on to add, “the (Gulf Arab region) is a competitive market with a large number of players and will drive growth for the industry… Key Takaful markets are characterized by low insurance penetration rates and comparatively high rates of economic growth.”
Other key challenges for the growth of Takaful insurance products include a lack of expertise and the ongoing socio-political instability across much of North Africa and the Middle East. Ernst and Young also said that changing regulations and misaligned cost base also hinder the growth of the market.
The Saudi Takaful market, however, proves to be an exception to the global slowdown in the Islamic insurance market. RNCOS, a research and analytical consultancy, recently released its industry report, which said that, “We have found that Saudi Arabia has emerged as the largest market for Takaful insurance, followed by Malaysia. Takaful insurance is growing at an annual growth rate of 15-20 percent globally, but it will grow at faster rate in Saudi Arabia because premium paid by the insured people is considered as donation and not premium.” In addition, with the recent mandate of compulsory health insurance for private employees, the health insurance market is expected to grow at an even faster pace.
The report forecasts that the general insurance category of Takaful products will grow at a compound annual growth rate (CAGR) of more than 24 percent from 2010 to 2012, due to increasing demand for motor and energy insurance. Property and aviation insurance policies are also expected to emerge as fast growing segments of the general insurance sector.
Similar to Saudi Arabia, other Gulf States’ insurance industries have also experienced a boost, in part due to compulsory health insurance for foreign employees, and a push towards private health insurance. The Kuwait National Healthcare system is currently pushing for a new private health insurance scheme in order to meet overcrowding, long waiting times, and a general growing dissatisfaction with the public health sector.
Bahrain National Holding (BNH) is also growing despite the political turmoil occurring in the country. In its annual shareholder meeting on March 29th, 2011, BNH announced that it remains adamant about continuing with plans on expanding its services throughout the Gulf region.
Sudan, which contributes $340 million USD to the Takaful insurance industry, is currently the largest market outside the Gulf region. However, Egypt, Bangladesh, and Pakistan’s Takaful industries are all growing quite rapidly.
In fact, Egypt could even stand to benefit from the ongoing regional instability. The UAE-based Salama Islamic Arab Insurance’s chief executive stated that turmoil in the Egyptian market has not only resulted in more claims, but has also generated more interest and awareness of Takaful insurance, which creates more demand and unprecedented opportunities for the market.
Regionally, the Indian subcontinent’s Takaful contributions have increased by 85 percent, making it the fastest growing Takaful market in the world. The next fastest growing market is the Middle East, which has grown by 40 percent, followed by the GCC (31 percent), South East Asia (29 percent), and Africa (26 percent).
In terms of individual countries, Indonesia had the largest Takaful market growth rate with 67 percent. It is followed by Bangladesh with 58 percent and Saudi Arabia with 34 percent.
The overall Malaysian insurance industry is also growing at a rapid pace with 12 percent projected growth in 2011. The Malaysian Takaful Association attributes this predicted growth to the expansion of the Takaful industry into rural areas of the country. There is a large interest in Takaful products. With only a 10 percent market penetration, there is much room for improvement and growth.
Generally, the Takaful industry receives a lower return on equity (RoE) because of the intense competition that small local insurers encounter from more established firms who have had experience in the conventional insurance market.
For the GCC, conventional insurers received an average RoE of 11 percent, while the Takaful insurers announced an average of 10 percent in 2010.
In Malaysia, the disparity is even greater with an average RoE of 16 percent for conventional insurers and 6 percent for Takaful companies. This difference, however, may arise from a significantly lower claim ratio than the GCC, mostly because of differences in business lines.
Also, in the GCC, the Takaful market is dominated by general insurance, while in Malaysia it is dominated by family Takaful. In the Mena region, the family Takaful market is still underpenetrated, contributing to only 5 percent of gross global annuals premiums, while conventional life insurance contributed to 58 percent. In comparison, in Malaysia, the family Takaful industry contributed to 77 percent of gross annual premiums in 2010.
Insurance Companies Mentioned
Bahrain National Holding
BNH, established in 1998, is based in Manama, Bahrain. Together with its many subsidiaries, BNH provides insurance and risk management solutions for many industries and individuals in the Gulf region.
Mar
28
India Waives 5% Service Tax on Private Healthcare
Filed Under Healthcare, International Healthcare | 3 Comments
Patients seeking private medical treatment in India will no longer be faced with an upcoming 5 percent service charge. India’s federal government last week announced the rollback of the planned tax on health-care services after encountering substantial pressure from opposition political parties, the healthcare industry as well as the general public.
Giving his general budget speech before Parliament, Finance Minister Pranab Mukherjee stated: “The proposed levy on healthcare has raised considerable anxiety in the House and outside. We have decided to exempt the new levy in its entirety; both in respect of services provided by hospitals as well as by way of diagnostic tests until the Goods and Services Tax comes into force.” The bill was later passed by the House.
The original proposal, prepared by Mukherjee on February 28th for the 2011 budget, introduced a tax on all medical services, including diagnoses, provided by air-conditioned hospitals with a capacity exceeding 25 beds. The move instantly evoked a strong reaction from the medical community with several distinguished doctors dubbing the scheme a ‘misery tax’. The proposal was in fact projected to increase the real cost of medical treatment for Indians by around 7 to 12 percent.
The move to withdraw the service tax has been welcomed by the healthcare industry in India. Shivinder Singh, Managing Director for Fortis Healthcare (India) said: “We welcome the finance minister’s decision to roll back the service tax proposed for the healthcare delivery sector. This positive step will benefit the common man, while providing a boost to the industry.”
Apollo Hospitals’ Executive Chairman Dr. Prathap C. Reddy explained the present situation: “Inflation in healthcare sector has been over 300 per cent in past decade. The industry has still tried to contain prices. Now, with the government relenting by taking back the proposed burden on the sector, it is good news not just for the industry but also for the people,” he added “I appreciate the rollback by the government. This new levy was like stretching pockets of over 85 per cent Indian patients.”
Ameera Patel, CEO and Executive Director of Metropolis Health Services, concurred that this was a positive development: “The new tax was a big drain on the pockets of patients, especially old people. It would have been a complete disaster,” she said.
The private healthcare sector is determined to support this initiative. Efforts to reduce their own costs will be given renewed impetus to boost the number of patients seeking preventative care and early diagnosis, helping to curb the rising prevalence of chronic diseases in India. During the past weeks budget discussions, almost all political parties had pressed the finance minister to remove the healthcare service duty. The announcement that the 5% service tax had been withdrawn was met with applause by members of Parliament.
The medical tourism industry in India is also relieved that the healthcare service tax has been waived by the Finance Minister. Concerns arose that making private treatment in India more expensive would put their healthcare facilities at a competitive disadvantage against other Asian markets that also cater to international clients.
A growing number of people from Western Europe, North America and Africa are visiting India every year for the sole purpose of receiving medical treatment. Patients are attracted by the lower costs and a high standard of private healthcare that remains comparable with the best in their home countries. The Indian medical tourism industry has been growing substantially and is projected to generate over $US2 billion a year in revenue by 2012. However, other Asian countries are also committed to taking advantage of this lucrative global market and are invested in building their own internationally-renowned healthcare facilities.
Companies Mentioned
Fortis Healthcare
Fortis Healthcare Limited, founded in 1999, is a leading healthcare provider with a network of 46 hospitals, satellite centers and heart command centers in India. The company also offers diagnostic, travel, IT and financial services through it’s’ wholly owned operation Religare Enterprises Limited.
Apollo Hospitals Group
Apollo Hospitals is the largest healthcare provider in Asia, third largest in the world. The company operates 53 hospitals, a total capacity of 8500 beds, across Asia. The company also offers medical consultancy and pharmacy services. Apollo Hospitals was founded in 1983 and is based in Chennai, India
Metropolis Health Services
Metropolis Health Services operate a chain of medical diagnostic and research facilities. The company has a worldwide network of operations. Metropolis was founded in 1981 and is based in Mumbai, India.
Mar
25
Mergers Expected in Thailand Healthcare Sector
Filed Under Healthcare, Hong Kong, International Healthcare | 1 Comment
Industry analysts are expecting the increase in merger and acquisition activity in Thailand’s healthcare sector to continue. Thai healthcare providers are determined to integrate more with one another to give them a national competitive advantage over the large foreign multinationals now entering the market.
Under the ASEAN Economic Community (AEC) agreements, by 2015 many industries will be increasingly liberalized across the continent, including the private healthcare sector. Regional market integration will theoretically expand the local healthcare market to over 580 million people.
Khazanah Nasional, Malaysia’s state investment branch, has identified Thailand in particular as a healthcare market with great growth potential and would be aggressively pursuing opportunities in the region.
Pongsak Viddayakorn, board member at Bangkok Dusit Medical Services (BGH), Thailand’s leading hospital operator, explained: “The cash-rich Malaysian state investment firm is in the process of pitching acquisition proposals to almost all Thai healthcare providers, leading local players to look for accelerated consolidation to curb what is feared will be a foreign invasion.”
In July 2010, Khazanah Nasional won a fierce bidding war with India’s Fortis Healthcare to acquire Asia’s largest hospital operator: Parkway Holdings Limited of Singapore.
Mr. Pongsak predicts similar activity in Thailand: “The remaining smaller-scale players failing to bond with the local giants may be forced to team up with one another or else eventually sell out to foreign investors.”
BGH, aware of impending foreign competition, is committed to protecting its market share. In December 2010, the group acquired both the Phyathai Hospital and Paolo Memorial Hospital chains, 8 medical facilities in total, from the Health Network Group for a total of 12.6 billion baht (US$ 315 million). The acquisition is expected to be completed by the second quarter of 2011 and will expand the BGH hospital network to 27 facilities, with an estimated 20,000 a-day outpatient capacity once the merger is completed. This achievement has turned Bangkok Dusit into the second largest hospital group in the Asia-Pacific region outside of Japan.
The most recent acquisition in Thailand was made last week by Bumrungrad Hospital Plc (BH), the country’s second largest listed hospital conglomerate. On March 19th, BH purchased a 24.99% stake in Bangkok Chain Hospital Plc (KH), chief operator of Kasemrad Hospital Group, from developer Land & Houses Plc for 3.53 billion baht (US$ 116.7 million) at a share price of 8.50 baht (US$ 0.28) per share. BH has been subject to its own shareholding change recently. Last month BGH purchased an 11% stake in BH.
KH operates a health network of six hospitals under the Kasemrad brand, with approximately 1,240 beds and an operational capacity of 9,400 outpatients a day. Bumrungrad’s acquisition will expand their coverage and give it greater penetration into the growing Thai middle class market through the new locations in KH’s multi-facility network.
BH is now committed to extensive investments both in and outside of Thailand as part of their revised expansion strategy. Bumrungrad International was established in 2005 as a subsidiary to focus on advancing acquisition, development and management of medical delivery services throughout Asia and the Middle East. The firm has partnered with strategic international investors including Bangkok Bank plc, Hong Kong listed Asia Financial Holdings Ltd., Singapore’s Temasek Holdings and Istithmar World of Dubai. BH is currently working in conjunction with Asia Financial to develop a 500 bed private hospital in Hong Kong at a cost of US$ 300 million. The Hong Kong government is auctioning off four land plots for potential private hospital development. If their bid is approved, the project is expected to commence next year.
In Thailand, BH has outlined increased spending to increase the capacity of their medical facilities. 1.4 billion baht (US$ 46.3 million) has been earmarked for domestic infrastructure spending on top of the roughly 600 million baht (US$ 19.8 million) in annual costs attributed to equipment and facility upgrades. Through its international investment branch, the firm now operates 104 clinics and hospitals in 8 different markets.
The industry outlook for the Asia-Pacific region is good. The lucrative private healthcare market in Asia has become an increasingly important engine for growth. India, Singapore, Malaysia and Thailand have emerged as key medical tourism destinations for international clients. In addition to this, the rising level of disposable income among the native Asian populace has increased awareness of better quality of healthcare available through privately run medical sources as well as supplementary health insurance options. The low interest rate environment and improved knowledge of investment products are concurrently driving up demand for investment-linked insurance products, which are providing insurers in emerging markets in Asia with a significant scope for new written premiums.
Companies Mentioned:
Bangkok Dusit Medical Services
Bangkok Dusit Medical Services, together with its subsidiaries, operates a private hospital network in Bangkok, other Thai provinces and in Cambodia. The company was founded in 1969 and the first Bangkok hospital commenced operations in 1972. Private healthcare facilities include Samitivej hospital and BNH hospital.
Bumrungrad International
Bumrungrad Hospital Public Company Limited was founded in 1980 and is based in Bangkok, Thailand. The company’s primary activities are owning and managing hospitals. Its flagship facility, Bumrungrad International hospital, is a prominent medical centre attracting over a million patients annually and has been nominated as one of the world’s top ten international hospitals by Newsweek International.
Parkway Holdings
Parkway Holdings Limited is one of Asia-Pacific’s leading providers of healthcare services. Parkway operates a provider network of 16 hospitals with more than 3,400 beds throughout Asia, including Singapore, Malaysia, Brunei, India, China and the UAE. Parkway was first listed on the Singapore stock exchange in 1975.
Fortis Healthcare
Fortis Healthcare Limited, founded in 1999, is a leading healthcare provider with a network of 46 hospitals, satellite centers and heart command centers in India. The company also offers diagnostic, travel, IT and financial services through it’s’ wholly owned operation Religare Enterprises Limited.
Khazanah Nasional
Khazanah Nasional is the investment holding arm of the Government of Malaysia. The company acts as strategic investor in new industries and markets and manages these investments on behalf of the Malaysian government. The company became incorporated as a public limited company in September 1993 and began operations the following year. Khazanah holds investments in more than 50 companies, who are involved in many diverse industries including: banking, electronics, healthcare, manufacturing, and telecommunications.
Mar
8
Fortis Healthcare Continues Asian Expansion
Filed Under Healthcare, International Healthcare | 1 Comment
Fortis Healthcare Ltd, the Indian private hospital chain, has bought a 28.6 percent stake in Lanka Hospitals Corporation, a privately operated hospital in Sri Lanka for a reported US$ 36 million.
The minority share in the Sri Lanka-based private hospital was bought through Fortis’ overseas investment arm, Fortis Global Healthcare Holdings, which was established in Singapore as a platform for private investment within the Asia-Pacific healthcare sector.
Lanka Hospitals is currently traded on the Colombo Stock Exchange, with the state-run Sri Lanka Insurance Corporation Limited being the majority stakeholder in the Sri Lankan private hospital.
The Colombo-based Lanka Hospitals operates a 350-bed healthcare hospital, which is equipped with specialist medical treatment facilities and is one the major privately operated healthcare facilities in the country.
The deal allows Fortis access to the island nation’s population of over 21 million people and an economy which has developed over the last decade. The Indian hospital group regards the acquisition as a tremendous opportunity to expand in an emerging nation through one of Sri Lanka’s most advanced private hospitals.
The Lanka Hospitals deal follows Fortis’ decision to increase its stake in the Australian Dental Corporation Holdings from 33 percent to 58.6 percent earlier this year. Fortis bought into the general and specialist dental practices network in order to gain access to the Australian and New Zealand dental market and, in doing so, acquire the use of the successful structural model adopted by the Dental Corporation. The acquisition means Fortis has increased its exposure within the Asia-Pacific mature private health sector, allowing them to build on its presence in the region.
In 2010, Fortis failed in its ambitious bid to acquire Singapore’s largest private hospital chain Parkway; withdrawing its original offer. This subsequently allowed Khazanah Nasional Berhad of Malaysia to acquire a 25 percent stake in Parkway.
Fortis Healthcare, which is primarily owned by billionaire brothers, Malvinder Mohan Singh and Shivinder Mohan Singh, has stepped up plans over the last year to increase the Fortis network by cultivating the private healthcare chain. Fortis has been leading the race in expanding its footprint within its home healthcare market in India, together with ventures throughout the Asian region in order to capitalize on the increasing demand for private healthcare.
The Asian healthcare sector has been one of the growth markets in the region accelerating in line with strengthening economies and the rapidly growing wealth of a middle class population willing to pay for treatment and care from the private healthcare sector. This is coupled with the flourishing medical tourism market in Asia, which provides for international visitors taking advantage of quality healthcare facilities at a fraction of the cost of treatment in domicile western hemisphere countries.
The Sri Lankan economy is one the fastest growing in Southern Asia and, since the end of the civil war in 2009; the country has become a sound prospect for investment. The government of Sri Lanka has invested significantly in the local economy and reported GDP totaled US$$104.7 billion in 2010; the South Asian nation is now well positioned for further growth.
Fortis Healthcare reported third quarter earnings for the period ending 31st December 2010, which totaled US$90 million. This reflected the buoyant demand for treatments in the company’s hospital network across India. Fortis’ strategy within the home market of India has been to consolidate the private hospital network across tier I, II and III cities in order to meet the increasing demand for healthcare services in India.
Although Fortis Healthcare is mainly a healthcare provider in India, the group has set up the investment vehicle – Fortis Global Healthcare Holdings – to facilitate international acquisitions in Asia’s growing private healthcare sector.
Companies Mentioned
Fortis Healthcare Limited
Fortis Healthcare Limited is a healthcare provider having a network of 53 hospitals, satellite centers and heart command centers with nearly 8000 beds capacity.
The Lanka Hospitals Corporation PLC
The Lanka Hospitals Corporation plc was formerly known as Apollo Hospitals offering healthcare services in Sri Lanka. Lanka Hospitals provides emergency, cardiac thoracic, dental clinic, kidney care centre, fertility centre, health check, paediatric treatment, diagnostic, cosmetic centre, blood bank and general surgery services.
The Dental Corporation
The Dental Corporation was founded in 2007 to partner and acquire high quality general and specialist dental practices run by experienced practitioners. The Dental Corporation is comprised of over 140 practice sites based across Australia and New Zealand.
Mar
2
Thailand’s Universal Healthcare Scheme Faces Problems
Filed Under Healthcare, International Healthcare | Leave a Comment
A study by the Sub-Panel of Thailand’s Senate Standing Committee on Public Health has highlighted serious issues affecting the provision of public healthcare services for the near 50 million members of this developing country. The national system – introduced in 2001 with the laudable aim of equal access to quality healthcare for all citizens – is suffering from serious underfunding and lack of resources.
While treatment has been given – free at the point of delivery – to over 140 million outpatients and 5 million inpatients since its inception just over nine years ago, the emerging problems have been the subject of critical appraisal by the Senate Standing Committee on Public Health.
The National Health Social Office (NHSO) in Thailand is responsible for overseeing the healthcare system in the country and is charged with promoting and managing quality healthcare in Thailand. However, the NHSO has been criticized for poor budgetary control and allocation of funds for public hospital and healthcare facilities, which is undermining the efficient operation of public healthcare services in Thailand. A feature identified in the study is the abstraction of funds essentially required to properly run hospital services to meet day-to-day labour costs.
The focus is now being placed on saving the country’s healthcare system from ruin by increasing budget funding, which includes the adequate provision of healthcare professionals. The underfunding of Thai state hospitals over a number of years is causing particular concern especially in smaller towns and villages in Thailand where the process for the allocation of monies linked to the size of local populations is resulting in particular difficulties. Calls are being made for a larger proportion of the national budget to be put into the public universal healthcare services in Thailand in order to meet the NHSO’s initial objective, which is needing to cater for a growing ageing and ailing population.
To resolve the financial issues facing Thai’s state run hospitals, pleas are being made for the government to increase funding to overcome debt problems as part of a step to ensure public hospital can survive in the long term.
An advisor to the standing committee Dr Ittaporn Kanachareon said “The country’s healthcare system will collapse, due to increasing provision of medical services and a decrease in service providers. The government needs to set up an ad hoc panel to resolve the shortage of medical personnel and the insufficiency of medical services.”
Experts propose that the Thai government split the funding of health services, with medical staff paid separately from funds allocated for patient care. This measure is being suggested in order to better manage emerging costs.
In contrast, the position in the private healthcare sector in Thailand is going from strength to strength, gaining a reputation for quality provision of medical services for the increasing numbers of the more affluent members of the country’s population and as a prime supplier of services for medical tourism.
While it could be argued that in comparative terms the Thailand universal healthcare system is still in a fledgling status, it is clear that action needs to be taken to rectify funding problems. On a positive front, Thailand is a key member of a group of developing countries in the Asian region, with an expanding economy which is creating wealth for the Thai government; this should create scope for use to facilitate support for improvements to the country’s universal health service.
Feb
11
Saudi Arabia Placed On Dengue Fever Alert
Filed Under Expat Insurance, Health Insurance, Healthcare, International Healthcare, Medical Insurance, Uncategorized | 6 Comments
In Saudi Arabia authorities are warning hosptials in Jeddah of a dengue fever outbreak, following floods which have provided a perfect breeding ground for mosquitoes.
According to the Ministry of Health Saudia Arabia, since the January 26th floods in Jeddah, six cases of dengue fever and 4 cases of malaria have been confirmed in the country. Further to this, dysentery and other secondary flood related illnesses have caused an influx of patients in Jeddah’s hospitals.
Authorities have asked hospitals in Jeddah to prepare for an increase in dengue fever cases. In order to monitor the situation carefully, the Health Affairs Department has supplied hospitals with the appropriate dengue fever and malaria testing equipment. Health Affairs director, Dr Sami Badawoud, has mandated hospitals to treat all patients with symptoms of dengue fever, whether citizen or foreigner. Despite efforts, patients are flocking to hospitals with secondary illnesses relating to the Jeddah floods which killed 10 people, 8 who were expatriates.
Anas Al-Baloushi, head of Social Affairs Preventative Medicine Department, warns the number of dengue fever cases are expected to rise next week given the end of incubation period for mosquitoes. Dengue parasites are transmitted after a mosquito ingests blood from an infected specimen, and takes approximately 8 to 12 days for the mosquito to be a carrier of the dengue virus. While only female mosquitoes will drink human blood, and then only when pregnant, an infected mosquito can transmit the virus to humans during its entire lifespan, which is typically 15 to 65 days long. As such, the risk of dengue fever transmission will largely increase over the next coming weeks.
Flooding in the Jeddah area has caused a range of secondary illnesses, which are expected to increase further. Following the floods, 161 patients have been admitted to hospitals with flood related illnesses. Patients have presented with dysentery related symptoms, as well as asthma attacks caused by stress relating to the floods. The Saudi Department of Health Affairs has informed the Jeddah populace to strictly drink bottled water, as water tanks will variably be contaminated with bacterial infections such as dysentery and cholera. Sami Badawoud has further warned that pesticides, used to eradicate mosquitoes, are harmful and can exacerbate chest and respiratory illnesses.
Given the low doctor-patient ratio in Saudi Arabia’s public hospitals, similar to other healthcare systems across the globe, what we can expect to see is an overcrowding of public health facilities in Jeddah over the next coming weeks to months. Although the public health care system is well equipped to adequately treat malaria and dengue fever patients, lack of staff will not be able to sufficiently cope with an outbreak such as this.
In the even of an outbreak, patients are likely to steer towards treatment at private health care facilities, given that public hospitals are likely to fill up quickly. An International Health insurance policy is therefore deemed necessary when visiting areas at risk of water and vector borne disease outbreaks.
Patients that suffer from serious dengue fever cases, including life-threatening complications of dengue hemorrhagic fever (DHF), must be treated immediately in hospitals. With no hospital treatment the mortality rate is 26 per cent in severe DHF patients. The dengue mortality rate is reduced to 3 per cent with adequate hospital treatment. Hospital admission is required to control hemorrhage and shock, with treatment duration depending on the severity of the virus. Intravenous fluids are used to treat shock and dehydration, and a blood infusion may also be required. Various complications can result from DHF including respiratory problems, liver failure, neurological, pleural effusion, and gastrointestinal hemorrhage.
Countries across the globe, particularly in sub tropical climates, are fighting vector borne diseases with no current vaccination or successful eradication plan. Pre-exposure treatment, such as anti-malarial medication, is available however not entirely effective and too expensive for third-world countries. The Saudi Arabian Government is making continuous efforts to control outbreaks of vector borne diseases with applications of pesticide spray to stagnant water in the post-flooded Jeddah area. There are also developments in relation to a genetically modified (GM) mosquito that would be used to eradicate the dengue fever virus in affected areas worldwide. GM mosquitoes are male, therefore do not drink blood and pose no threat to spreading the disease.
Feb
10
Report Highlights Disease-Related Problems in South Asian Countries
Filed Under Healthcare, International Healthcare | 6 Comments
The burden of heart disease, diabetes and other non-communicable illnesses are taking their toll on the vulnerable members of society in the South Asian region according to a recent report by the World Bank.
The report highlights the worrying increase of illness impacting the populations of South Asian countries, with impoverished people being affected by consequential out-of-pocket payments for subsequent healthcare services. The report covers studies undertaken in Afghanistan, Bangladesh, Bhutan, India, Nepal, Pakistan, the Maldives and Sri Lanka and identifies alarming health concerns across South Asia.
Heart disease is the biggest killer in the region for those people aged between 15 and 69; the studies also found that non-communicable diseases are responsible for 55 percent of all diseases in the region.
South Asia is at a cross roads: while the region is developing from an economic viewpoint, there is a substantial proportion of society still living in poverty. The urbanization of populations in the region has increased bringing more pressurized lifestyles and a resultant heightening of risks to health from heart disease, diabetes and obesity. The average life expectancy is 64 years of age for a person living in South Asia.
Problems arise from poor nutrition and smoking causing exposure to obesity, high blood pressure and high cholesterol and glucose levels. This has, consequently, placed enormous pressure on healthcare systems as more people seek treatment for chronic illness and disease. However, as economic and social change in the region evolves, the state run healthcare systems have failed to develop to meet changing patient needs. This has placed even more pressure on inadequate services – also required to deal with communicable diseases such as tuberculosis and water and vector-borne diseases – with vulnerable members of the community being most severely affected.
A major concern highlighted in the report covers the impact of out-of-pocket payments required to be made by patients seeking medical treatment; impoverished patients being unable to fund proper medication for rehabilitation in order to return to work.
Speaking on the findings from the study, co-author, Michael Engelgau, a World Bank senior public health specialist, highlighted to concerns by saying: “This unfair burden is especially harsh on poor people, who, after heart attacks, face life-long major illnesses, have to pay for most of their care out of their savings or by selling their possessions, and then find themselves caught in a poverty trap where they can’t get better and they can’t work.”
The World Bank’s reports recognizes that efforts to control the growing burden of heart disease, diabetes and other non-communicable illnesses, could cost an additional 4 to 10 percent of South Asia’s gross domestic product (GDP); however, the report did acknowledge that this was an unrealistic goal.
It is recognized that action needs to be taken to control the impact of non-communicable diseases in South Asia, with a pro-active approach being adopted including measures such as reducing the use of tobacco and cutting alcohol and unhealthy food consumption. In India, Bangladesh and Pakistan, it is estimated that a 10 percent reduction in the consumption of salt would prevent 70 deaths per 100,000 people over the next 10 years. If such health strategies can be implemented across South Asia there would undoubtedly be a significant improvement in the standard of health.
In evaluating the findings, the World Bank said that the South Asian healthcare system needs to overcome a number of challenges to ensure health services improve in the region. These include: collaboration to enable the group purchasing of medications, establishing a health technology assessment network, combining education and training in the region and the creation of a surveillance and burden assessment hub.
The report states that 71 percent of the South Asian population live in rural areas, and that the gross domestic product (GDP) in the region has increase by 6 percent annually over the last two decades. However, even though there has been steady economic growth in the region, and a decline in poverty rates, South Asia has the highest density of poor people in the world – reaching over 1 billion in number. Among these 1 billion people, it is estimated two-thirds live on less than US$2 a day and two-fifths on less then US$1.50 a day. It is this element of the South Asian population most at risk because of inadequate access to healthcare services and the subsequent financial burden from treatment provided.
As average life expectancy ages rise, and more elderly people require treatment, there are growing concerns surrounding the current standard of healthcare available in the region. The major issue is the future accessibility and quality of healthcare, with proper education and resources to meet the needs of vulnerable elements of society in South Asian countries. The report identifies concerns about the potential for worsening health burdens developing across South Asia.
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