Cost-saving Benefits Likely to Drive Southeast Asian Hospital Information Systems Market

frost&sullivan

Aditya AN Senior Research Analyst
Technical Insights (Healthcare)
Frost & Sullivan

Increasing awareness and rising demand for better healthcare facilities are driving installations of advanced technology systems in hospitals in Southeast Asia. As a result, public and private hospitals are adopting hospital information systems (HIS) and the governments in the region are supporting as well as encouraging these implementations. This is increasing the demand for HIS and related solutions in Southeast Asia.

New analysis from Frost & Sullivan (www.healthcare.frost.com), Southeast Asian Hospital Information Systems Market, reveals that revenues in this industry totaled $115.5 million in 2005 and is likely to reach $197.9 million in 2009.

“An increase in health consciousness combined with a rapid rise in medical tourism has ignited the need for efficient medical facilities, resulting in significant government expenditure in healthcare,” explains Frost & Sullivan Research Associate Rajiv Kumar Varyani. “Government investments in healthcare are not only indicative of a concerted effort to increase the efficiency of healthcare delivery, but it also highlights the growth of the health insurance market in this region.”

Government and healthcare providers have become aware of the advantages of HIS and are taking all possible steps to improve the healthcare delivery structure. This is evident from the 36.4 percent growth in government spending on healthcare from 2000-2005. In addition, the rapidly ageing population and intense competition between private hospitals for increased IT adoption are likely to drive the HIS market in this region.

Despite its growth potential, the lack of robust IT infrastructure in the region is likely to place a damper on this market. The lack of established information and privacy norms such as the Health Insurance Portability and Accountability Act (HIPAA) could also curtail widespread adoption.

“Apart from Singapore, only a few healthcare facilities in Malaysia, Thailand, and Philippines have any kind of computerized HIS and most medical providers here are struggling to even guarantee an acceptable standard of healthcare,” explains Varyani. “Although this could be an enormous market opportunity, most healthcare providers in this region are in no position to invest in Healthcare IT.”

Total HIS that includes enterprise resource planning, financials, resource management, and integrated enterprise-wide applications as well as electronic medical records are likely to dominate the market in the coming years. The market is most likely to experience increased demand for tightly integrated systems that encompass all these units in a single package. The need of the hour for healthcare providers in this region is to cater to this growing need and thus improve the growth potential of this market.

Southeast Asian Hospital Information Systems Market evaluates the revenue and growth potential of this market. It includes a detailed study of the potential challenges, drivers, and restraints with strategic recommendations for market participants. In addition, this study also includes a strategic analysis of the market scenario for emerging vendors in this region. Executive summaries and analyst interviews are available to the press.