ANTHONY HOBEIKA |C.E.O, Mena Research Partners live interview on Wednesday March 29 2017 on Dubai Eye ( 103.8 FM )

EXCLUSIVE INSIGHT about UAE HEALTHCARE REPORT
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ABSTRACT

TABLE OF CONTENT

The move towards quality healthcare, increase in demand for preventive care and digital health will contribute to a massive 60 percent growth of the healthcare sector in the UAE in five years. The current AED 64 billion (US$ 17 billion) market will surge to over AED 103 billion (US$ 28 billion) in 2021, driven by a shift in demand for preventive care, a rise in specialist medical services, more efficiently integrated healthcare solutions, as well as the high growth potential within specific medical device and pharmaceutical sub-sectors. Medical tourism and mandatory insurance will also contribute to the sector’s growth. The country aims to achieve a world-class healthcare system and become among the leading countries, not only regionally, but in the world in terms of quality of healthcare, according to the UAE Vision 2021 National Agenda. To achieve that, the National Agenda emphasizes the importance of preventive medicine and seeks to reduce lifestyle-related diseases to ensure a longer, healthier life for citizens. In fact, the healthcare sector in the UAE is witnessing structural shifts and, as a result, is changing fast to adapt to the demands of a younger, more health-conscious population asking for preventive care rather than curative care and, along the way, is more engaged in its own well-being. Being itself a digitally savvy population that enjoys one of the highest digital connectivity in the world, the new generation is redrawing the blueprints of the future of healthcare in the UAE. It is looking for a more personalized and specialist healthcare. While doing this, it is moving more towards interaction and self-management which is aided by the ever-growing digital technology in the sector. The findings of the report also reveal that, while the healthcare market has been growing at over 10 percent year on year since 2015 and is expected to continue in this trajectory, there will be an upsurge of 15 to 25 percent in some subsectors across the three pillars of the market: a) healthcare providers-currently accounting for at 76% of the total market, b) medical devices-estimated at 6%) and c) pharmaceuticals and life sciences- estimated at 18%. In its report, MRP sized in excess of 20 sub-segments and identified a number of niche areas that health providers need to cater over the next few years. The research also identifies key mega trends shaping demand for and delivery of healthcare as well as niche trends influencing medical provider models.

  1. EXECUTIVE SUMMARY
  2. MARKET SIZING AND GROWTH OUTLOOK
    1. General overview
      1. Defining the value chain: breaking down the 3 major segments – healthcare services, medical devices and pharma – into sub-segments
      2. Snapshot sizing of all components of the UAE healthcare value chain by 3 approaches: “gross sales” approach, “net sales” approach and “the payers” approach
      3. Snapshot sizing of the UAE healthcare by type of disease
    2. Healthcare services
      1. Defining the value chain of healthcare services: 6 major segments and 40+ sub-segments
      2. Size and growth of the healthcare services segment
      3. The hospital sub-segment
        1. Size and growth of the inpatient practice
        2. Size and growth of the outpatient practice
        3. Methodology of calculation
      4. The clinics and primary care center sub-segment
        1. Size and growth of the outpatient practice
        2. Methodology of calculation
      5. The laboratory sub-segment
        1. Size and growth of the laboratory testing practice
        2. Size and growth of the radiology testing practice
        3. Methodology of calculation
      6. The telemedicine sub-segment
        1. Size and growth of the sub-segment
        2. Methodology of calculation
      7. The home care and long-term care sub-segment
        1. Size and growth of the home care practice
        2. Size and growth of other long-term practices
        3. Methodology of calculation
    3. Healthcare devices
        Defining the value chain of medical devices: 5 major segments and 13 sub-segments
        Size and growth of the 5 major segments
        Size and growth of the 13 sub-segments.
    4. Pharmaceuticals
      1. Defining the value chain of pharmaceuticals: 3 major segments
      2. Size and growth of the 3 major segments
      3. Sizing of the pharma expenditures by therapeutic areas: i.e. cardiovascular, respiratory, and 15 other areas
  3. MEGA TRENDS, DRIVERS AND CHARACTERISTICS: THE INVESTMENT IMPLICATIONS FOR PRIVATE SECTOR
    1. General themes affecting the overall healthcare value chain
      1. Transition from shortage in healthcare infrastructure towards saturation
        1. What is the private sector’s positioning over the long-term in UAE?
        2. What are the business models being adopted in UAE?
        3. What are the demand drivers?
        4. What is the long-term potential of the UAE healthcare market?
        5. The future: what are the investment opportunities in terms of services to be provided?
      2. Fundamental shift from curative to preventive care
        1. What is the private sector’s positioning over the long-term in UAE?
        2. What are the business models being adopted in UAE?
        3. What are the demand drivers?
        4. The future: what are the investment opportunities in terms of services to be provided?
      3. Aging population
        1. Size and growth rates of the demand by elderly population in UAE
        2. Methodology of calculation
        3. What are the demand drivers?
        4. Benchmarking against global trends
        5. The future: what are the investment opportunities in terms of services to be provided?
      4. Medical tourism
        1. Size and growth rates of the demand by medical tourists in UAE
        2. Methodology of calculation
        3. What are the demand drivers?
        4. The future: what are the investment opportunities in terms of services to be provided?
      5. Cost reduction
        1. Assessing the medical costs
        2. What are the drivers?
        3. The future: what are the investment opportunities that cater to medical inflation?
      6. Private sector role and privatization
      7. Digital health
        1. What are the new models emerging in healthcare?
        2. The disruption across the patient lifecycle
        3. The future: what are the investment opportunities created by digitalization?
    2. Specific trends across the different components of the healthcare value chain
      1. Specialized clinics
        1. Brief introduction
        2. General drivers: the implications from healthcare-wide trends
        3. Specific drivers: the implications from segment-related trends
        4. Case study: success stories in UAE
      2. Alternative models for primary care
        1. Brief introduction: short-coming of traditional care versus the new primary models
        2. General drivers: the implications from healthcare-wide trends
        3. Specific drivers: the implications from segment-related trends
        4. Case study: success stories in UAE
      3. Long-term care: home care and others
        1. Brief introduction
        2. General drivers: the implications from healthcare-wide trends
        3. Specific drivers: the implications from segment-related trends
        4. Case study: success stories in UAE
      4. Telemedicine
        1. Brief introduction
        2. General drivers: the implications from healthcare-wide trends
        3. Specific drivers: the implications from segment-related trends
        4. Case study: success stories in UAE
      5. Digital health
        1. Brief introduction: Mhealth, electronic medical recors, e-claims
        2. General drivers: the implications from healthcare-wide trends
        3. Specific drivers: the implications from segment-related trends
        4. Case study: success stories in UAE
      6. Medical devices
        1. Brief introduction
        2. General drivers: the implications from healthcare-wide trends
        3. Specific drivers: the implications from segment-related trends
        4. Case study: success stories in UAE
      7. Pharmaceuticals
        1. Brief introduction
        2. General drivers: the implications from healthcare-wide trends
        3. Specific drivers: the implications from segment-related trends
        4. Case study: success stories in UAE
  4. THE DEAL ACTIVITY BY PEERS: WHAT ARE THE BUSINESS MODELS BEING ADOPTED?
    1. Lessons from investment companies
    2. Lessons from healthcare players
  5. RECOMMENDATIONS: HOW CAN THE PRIVATE SECTOR POSITION WITHIN THE UAE HEALTHCARE VALUE CHAIN
    1. What are the types of business models?
    2. What are the headline drivers?
    3. What is the patient behavior?
    4. What are the net profit margins and growth rates?
    5. Conclusion: what are the investment opportunities?