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PH healthcare information sector eyes bigger share of US market

Published Apr 24, 2023 09:39 am
The healthcare information and management services (HIMS), the fastest growing segment in the IT-business process management (IT-BPM) industry, is eyeing a bigger pie in the $406 billion US healthcare services market to boost its growth. Philippine Economic Zone Authority (PEZA).Director General Tereso O. Panga reported that 35 HIMS companies participated at the HIMS Global Health Conference & Exhibition held on April 17- 21 and roadshows in Illinois, Texas, and New York organized by the Department of Trade and Industry, PEZA, Department of Information and Communications Technology (DICT, and the Healthcare Information Management of the Philippines (HIMAP). In Chicago, Panga said the event with the theme "Responsible Artificial Intelligence: Prioritizing Patient Safety, Privacy, and Ethical Considerations," attracted 1,000+ exhibiting healthcare information and technology companies, providing for latest innovations in HIMS products and services, startups, thought leadership sessions, and hot-topic specialty pavilions. It is noteworthy that the Philippines and Israel were the only country-exhibitors with government booths jointly manned by their private sector delegation. Panga said that HIMAP is eyeing to increase the sector's export sale of services to the US by tapping into the leading American HIMS companies' outsourcing requirements for voice and non-voice IT services. According to the Grandview Research, the US accounts for over 50 percent of the global HIMS market size valued at $406 billion in 2022. In 2021, the US HIMS market was placed at $172 billion. In the same study, it projects the global HIMS industry to expand at a compound annual growth rate of 13.3 percent from 2023 to 2030. Rise in healthcare expenditure and advancements in its IT infrastructure such as the use of IoT, big data, and AI are some of the primary drivers boosting the market. The study also highlighted that Asia Pacific is the fastest-growing regional market, with high demand for healthcare IT services. Panga said this is where the Philippines can compete for the service and web-based deployment segments, which account for the largest market share of the HIMS global industry at 47.4 percent and 43.3 percent share, respectively. At present, healthcare information and related health practices represents 10 percent to 13 percent of the IT-BPM industry in the Philippines. With the country's vibrant IT industry despite the continuing impact of the global slowdown in trade, HIMAP remains bullish in projecting a 13% to 15% growth for HIMS FDI and exports this year. With the phenomenal rise post  pandemic in the demand for healthcare information management and remote telehealth services, Panga said that the Philippine IT industry stands a stronger chance across ASEAN in attracting HIMS-related FDI into call center and BPO operations. While the Philippines is touted to be the voice center capital of the world, the IBPAP, which counts HIMAP and Contact Center of the Philippines as valued industry members, is vying for the needed diversification the higher value clinical and non-clinical services, pharmaceutical support, software development and digital applications, data analytics and other AI-based solutions. The Philippines happens to be the largest exporter of nurses worldwide. Our huge pool of young, hardworking, English-proficient and professional nurses/healthcare providers including world-class and work quality-oriented  IT talents-- coupled with our robust economic performance and attractive fiscal incentives for investors--remain as our competitive edge in getting the global HIMS industry players to channel their investments and outsourcing requirements to the Philippines. Panga noted that the Philippines offers the best ecosystem to enable the growth of the HIMS industry. To date, PEZA is home to 298 IT parks/centers nationwide and 1,581 IT locator companies generating cumulative investments of P443.1 billion, export revenues amounting to $19.9 billion and direct jobs for 1,071,418 Filipinos. However, of these total IT KPIs, PEZA is hosting only 30 HIMS locators with P1.2 billion approved investment, $100.8 billion actual export sales and 6,715 direct employment. As of 2022, there are a total of 1,582 IT-BPM industry activities registered in PEZA which generated a total of P337.593 billion investments, and 1,095,622 direct jobs. In that same year, the IT-BPO sector has contributed about $17.005 billion worth of exports.

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FILIPINO HEALTHCARE WORKERS Philippine Economic Zone Authority (PEZA)
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