The transformation of the reimbursement system will result in numerous structural changes in the healthcare sector. Pressured by both financial constraint and growing demand, a multi-tiered Medicare system will develop and change the way people seek medical care. This will encourage doctors, traditionally tied to a single public hospital, to practice across multiple institutions, in both public and private institutions. Private clinics and hospitals, with additional medical professionals, will be able to address patients’ increasing demands. With higher medical coverage, it will result in the growth of alternative medical institutions such as high-end specialty clinics, out-patient day-surgery centers, private specialty hospitals and chain clinics.
Other trends include a shift from treatment to preventive healthcare, with more people focus on proactive health management. This will result in opportunities in the growth of third party healthcare managers and health profile administrators, as well as the establishment of a primary care system. As hospitals struggled with poor management and inefficient administration, we will see the divestment (or spin-out) and outsourcing of non-core services such as diagnostics, sterilization, rehabilitation, logistics solutions, and human resource management from large tertiary hospitals. These adjacent independent businesses will develop to serve the tertiary hospitals to increase efficiency and quality, and reduce cost.