indonesia healthcare landscape & opportunities(an example) bambang sutrisna world class...

Indonesia

Healthcare Landscape & Opportunities(An Example)

Bambang Sutrisna

World Class Healthcare Experience1

World Class Healthcare Experience

Indonesia healthcare landscape & opportunities(An Example)

Member of Sentra Medika Grup:

IndonesiaHealth Care Landscape & Opportunities(An Example)

Content1. Health Facts2. Indonesia Healthcare Expenditure3. Indonesia Healthcare Infrastructure4. Millennium Development Goal5. Examples :Siloam Hospitals Group & Sentra Medika Group

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Health facts• Indonesia is the fourth most populated country in the world: 240 mio• Percentage of GDP in health: 2.2%• Birth Rate: 18.84 per 1,000 population (4,526,715/ year 2010 est.)• Death Rate: 6.25 per 1,000 population (1,501,697/ year 2010 est.)• Infant Mortality Rate: 29.97 per 1,000 live births (135,801/ year 2010 est.)• Maternal Mortality Rate: 228 per 100,000 live births (10,320/ year 2010 est.)• 48.5% of Indonesian population is uninsured• There are 8,549 Puskesmas (2,439 have IPD - total bed capacity 15,000)• Puskesmas growth rate 3.7% per year • Doctor to Puskesmas Ratio: 1.4 GPs per Puskesmas • 7% of Puskesmas has no doctor (most in Eastern Provinces)

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Health facts• Ratio Specialists to GPs = 27 : 100 • Ratio Doctors to Patients = 1 : 4,000• New challenges as a result of social economic changes, eg: rising Non-

Communicable Diseases vs. communicable diseases• In 2010, Government has new reform agenda from medication to prevention

and increased allocation on health programs for primary healthcare• Child• Maternity

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Health facts

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Health facts

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Health facts

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Health facts

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534432

83185

0

100

200

300

400

500

600

700

Public Hospitals Private Hospitals

Specialist care

General care

•240 million people with 1.178 hospitals with 128.284 beds•Private hospitals have 49% market share•Public hospitals provide only general care and 30% of specialist care

Specialist and General care at Public & Private Hospitals in Indonesia

Health expenditure

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Health expenditure

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2008 2009 2010 2011

Indonesia 12.3 13.2 14.2 15.8

Malaysia 6.5 6.9 7.5 8.2

Philippines 3.9 4.2 4.4 4.7

Singapore 5.7 6.0 6.4 6.9

Thailand 8.1 8.7 9.5 10.4

Vietnam 3.6 3.9 4.1 4.6

TOTAL 27.8 29.7 31.9 34.8

Asia’s healthcare market

constitutes approximately

34% of the global healthcare

market.

In US$ Billions

Source: Episcom Business Intelligence March 2007

Potentials of healthcare in Indonesia

Health expenditureProgram % Number

Jamkesmas 33.30% 76,000,000

Askes 6.20% 14,257,280

Jamsostek 2.50% 5,661,572

JKPM 3.90% 8,912,409

Private Insurance 1.20% 2,647,480

Self-Insurance 1.80% 4,204,924

Other 2.60% 5,941,099

Any Insurance 51.50% 117,624,764

No Insurance 48.50% 110,898,536

Total 100% 228,523,300

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Indonesian Health infrastructure

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Infrastructure 2007 2008 2009

Private Hospitals 667 673 685

Public Hospitals 652 699 721

Total Beds / Beds per 10,000* 142,707 6.3 149,538 6.5 153,519 6.6

GPs / GP per 100,000 44,378 19.6 44,759 19.5 47,930 20.7

Specialists / SPs per 100,000 14,599 6.5 15,722 6.8 16,764 7.2

Nurses & Midwives 256,290 291,992 327,413

* Jakarta 15.5 beds/10,000

Millennium development goals

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REDUCING CHILD MORTALITY YEAR INDONESIA CAMBODIA LAOS MALAYSIA MYANMAR PHILIPPINES SINGAPORE THAILAND VIETNAM

Infant mortality rate (per 1,000 live births) 2002 33 96 87 8 77 29 3 24 30

Under-five mortality rate (per 1,000 live births) 2002 45 138 100 8 109 38 4 28 39

One-year-olds fully immunized (%) 2002 76 52 55 92 75 73 91 94 96

Reducing child mortality rate

Millennium development goals

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IMPROVINGMATERNAL HEALTH YEAR INDONESIA CAMBODIA LAOS MALAYSIA MYANMAR PHILIPPINES SINGAPORE THAILAND VIETNAM

Maternal mortality ratio

(per 100,000 live births) – reported

1985- 2002 380 440 530 30 230 170 6 36 95

Births attended by skilled

health personnel (%)1995-2002 64 32 19 97 56 58 100 99 70

Contraceptive prevalence rate (%) 1995-2002 57 24 32 - 33 47 62 72 78

Improving maternal health

Opportunity for growth

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Population Demography

Population 240,271,522 1,156,897,766

Age structure0-14 years: 28.1%15-64 years: 66% 65 years and over: 6%

0-14 years: 30.5% 15-64 years: 64.3% 65 years and over: 5.2%

Median ageTotal: 27.6 yearsMale: 27.1 yearsFemale: 28.1 years

Total: 25.3 yearsMale: 24.9 yearsFemale: 25.8 years

LiteracyDefinition: age 15 and over can read and writeTotal population: 90.4%

Definition: age 15 and over can read and writeTotal population: 61%

Population below poverty line 17.80% 25%

Population growth rate 1.136% 1.407%

Birth Rate 18.84 births/1,000 population 21.72 births/1,000 population

Death Rate 6.25 deaths/1,000 population 7.6 deaths/1,000 population

Infant Mortality Rate Total: 34 deaths/1,000 live births Total: 50.78 deaths/1,000 live births

Life expectancy at birth Total population: 70.76 years Total population: 66.09 years

Opportunity for growth

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Health Statistics

Communicable to Life Style Disease Prevalence 55% to 45% 50% to 50%

Health Expenditures 2.6% of GDP 3.6% of GDP

Health Expenditure Distribution 45% Public - 45% Out of Pocket - 10% Insurance 45% Public - 45% Out of Pocket - 10% Insurance

Top 20 Percentile Spending in Private 90% 75%

Middle 20 Percentile Spending in Private 20% 70%

Bottom 20 Percentile Spending in Private 5% 30%

Beds/100,000 66 90

Doctors/100,000 28 70

Siloam Hospitals GroupVision

Quality, Scale, Reach, Godly CompassionMission

The trusted destination of choice for holistic world class healthcare, health education and research

Values Love, Caring, Integrity, Honesty, Empathy, Compassion, Professionalism

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VISI :“ Menjadi Rumah Sakit pilihan dengan

memberikan layanan yang terbaik“

MISI :“ Memberikan Pelayanan Kesehatan yang bermutu, cepat dan informatif kepada

masyarakat dengan biaya yang terjangkau”

MOTTO :“ Kesehatan Anda adalah Prioritas Kami ”

International Quality

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Scale

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Reach

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Affordability &

Accessibility

Target Market @ 240 Million on Price

20 Hospitals4600 Beds

Catchment: 100%Target : 24 Million

• Stop Migration• Reverse Migration

-High Scale-Low Margin

-Low Pricing Structure-High Affordability

-High GOR-High Quality

-High Competency

3 Years

Opportunity for Growth➲ Market segments with unfulfilled

demands➲ Awareness and focus on major killers➲ Population trends – ageing and youth➲ Lack of international quality

healthcare➲ Heightened public private sector

cooperationWorld Class Healthcare Experience

Operation Line

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Digital Hospital Framework

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SH Kebon Jeruk

SH Lippo Village

MRCCC Siloam

SH Lippo

Cikarang

SH Jambi

SH Surabaya

Teaching Hospital LV

SHPluitSH

SimatupangSH

Pulomas

SH Makassar

SHMedan

SHKemang

SHBandung

SH Times Square

Surabaya

SH Srondol Semarang

SH Palembang

End 2010 End 2011 End 2012Total Beds 1,109 2,565 4,565SH

Salemba

SHMalang

SHBali

SH Papua

SHKendari

SH Ambon

Pipeline Schedule

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Closing Remarks➲ Better prepared with a flexible and optimized

operation to meet market growth as well as market changes

➲ Pursue a clear strategy for our business focus and stewardship accountabilities

➲ Focus on knowledge creation and clinical staff to help us on our journey

➲ Achieve seamless service by optimizing people, process and technology capacity and capability

➲ Pursue aggressive marketing to maximize use of our

service capacity and capability and achieve our vision

World Class Healthcare Experience

World Class Healthcare Experience