The cost of healthcare is escalating beyond economic growth in Southeast Asian countries, with the total spending likely to reach USD 740 billion by 2025 compared to USD 420 billion in 2017. This increase in demand will primarily be due to the growing ePharmacy solutions and teleconsultations sectors.
Attitudes around telemedicine in healthtech witnessed a significant shift in recent years. Initially, consulting a doctor over a video call was met with scepticism. However, the global pandemic in 2020 acted as a catalyst, altering this perception. Patients are now more comfortable turning to telemedicine for basic ailments and consultations, marking a change in the healthcare paradigm.
Why Southeast Asia’s healthtech boom looks set to continue in 2024 and beyond
Let’s examine the factors behind the growth of healthtech in Southeast Asia.
The rise of telemedicine
A Bain & Company survey found that 43% of respondents in Singapore had utilised telemedicine in the last 12 months. It also found that usage had doubled in all Asia-Pacific countries post-COVID-19.
While the sector experienced a strong tailwind during the pandemic, many patients have continued to use online consultations even after in-person consultations became safe. Many have found it to be an effective complement to the traditional system.
The healthtech industry is constantly evolving. Initially, it focused on online consultations for common ailments but has expanded. Patients now use telemedicine to manage ongoing health issues and non-communicable diseases such as diabetes and blood pressure, remotely coordinating with their doctors. Specialist practitioners have also embraced this trend, offering online consultations to save time and assist patients who may find it challenging to attend in-person appointments.
Governments in the region are encouraging investment in the sector. For example, in 2021, Indonesia partnered with 11 private platforms to provide free doctor consultations.
The benefits and drawbacks
The primary beneficiaries of online consultations are patients who may otherwise be unable to access healthcare services. It is breaking down barriers, making it easier for older people, bedridden patients, or those who live in underserved areas to receive the care they need.
Many patients experience low-level symptoms such as low fever or a mild headache. They are more likely to consult a doctor if the process is more convenient and cost-effective. Video calls eliminate the need for travel and waiting lines, making healthcare more accessible for those with a busy schedule.
During COVID-19, many hospitals leveraged remote consultations to save precious beds. Hospitals set up “virtual wards, ” allowing nurses and doctors to monitor patients with less severe symptoms remotely. This saved hospitals bed days, which they could use for patients with more severe ailments.
While the benefits are significant, there are some valid concerns. Some patients use basic online consultations to collect unwarranted medical certificates or prescriptions. Doctors are less likely to be able to assess if a patient is truly ill through a video call, making them more susceptible to patients’ deception. Also, some older or less tech-savvy patients may struggle to use the technology.
These issues point toward the major limitation of online consultations. Current technological capabilities make it much harder for doctors to diagnose many kinds of ailments properly. Hence, such consultations may be more advisable when a physical exam is unnecessary.
Challenges ahead
The road towards mass adoption may be smoother for other businesses in the healthtech sector. One of the main challenges that companies may face is regulatory. App-based consultations are still quite new, and a legal vacuum exists in most countries. As governments pick up the issue and formalise their rules and regulations, businesses will have to tailor their services and business models accordingly. In addition, many healthcare providers may require assistance with healthcare staffing to ensure a steady supply of qualified professionals to meet the increasing demand for telemedicine services.
In Singapore, the Ministry of Health is working with companies to implement effective rules governing the space and ensure a suitable environment for doctors and patients. The Singaporean government currently requires doctors to complete an eTraining programme to provide such services. Doctors can complete this mandatory training within a few days, which helps the government ensure quality control.
Doctors also suggest additional solutions. For example, they indicate that it may be advisable for governments to implement minimum clinical experience rules. This can help ensure the provision of quality healthcare and can increase patient trust in the technology.
A promising future
Telemedicine in healthtech is not just a trend, but a potential solution to the escalating demand for healthcare services in Southeast Asia. With the total spending on healthcare projected to reach USD 740 billion by 2025, the role of telemedicine becomes even more significant. The region’s underserved areas stand to benefit significantly from such services, making online consultations a promising avenue for the future of healthcare in Southeast Asia.
Governments are taking note of the potential benefits and are likely to implement favourable regulations that help the industry grow while also protecting the needs of patients. Telemedicine can act as a valuable complement to existing healthcare services and help ease some of the burden of overloaded primary care facilities.