New Partnership To Improve Medical Care Standards
Espicom View: The construction and upgrading of new clinics owned by the private company MEDSI will be beneficial for the healthcare provider itself as it be supplied with the latest medical equipment produced by Philips. It will also become more efficient following performance management consultations. Philips will benefit from the arrangement, being the sole technology supplier, although the financial details of the partnership have not been disclosed. The expansion and improvement of the company's facilities will also be advantageous to the patients who are able to afford private healthcare.
In January 2014, Philips signed a Memorandum of Understanding (MoU) with MEDSI, Russia's largest private healthcare provider, on the development of a clinical network that aims to improve medical care standards in Russia. Under the partnership, the two companies will co-operate to help MEDSI's healthcare facilities achieve operational excellence, allowing patients to receive high quality effective care. Areas of co-operation outlined in the agreement include hospital renovation, the re-equipping of a Moscow-based MEDSI clinical hospital, and the construction of a new clinical diagnostics centre, including a short-term inpatient hospital and children's clinical hospital. The agreement will also cover a multi-profile clinical diagnostics centre, which will be part of the Moscow Clinical Hospital. MEDSI will gain access to Philips' latest medical equipment and technology, allowing it to focus on the delivery of care. Philips will oversee the operational performance of the equipment. It will also provide the healthcare facilities with advice on overall hospital management and improving clinical performance, as well as continuous training and regular system & software upgrades.
Growth In The Private Healthcare Sector
The agreement is the latest example of investment in the private healthcare sector. Millions of dollars have been invested in the development of high-end medical centres in recent years. The demand for private healthcare has risen as it is widely recognised as the best way to obtain good medical care. However, many Russian patients are still unable to afford private services, and private pre-paid plans represent less than 10% of total private expenditure. Projects of this nature, alongside sizeable public investments in healthcare facilities, help keep medical device market growth strong. Russia is the largest medical device market in Central & Eastern Europe, valued at US$7,434.1mn in 2013, and BMI Espicom expects it to expand at a CAGR of 9.1% over the 2013-2018 period.
|Positive Market Growth|
|Projected Medical Device Market, 2013-2018 (US$mn)|
|Orthopaedics & prosthetics||439.7||459.4||485.0||529.0||574.3||616.3|
|US$ Per Capita|
|Orthopaedics & prosthetics||3.1||3.2||3.4||3.7||4.0||4.4|
|US$mn % Change|
|Orthopaedics & prosthetics||10.4||4.5||5.6||9.1||8.6||7.3|
|Source: BMI Espicom|