The Philippines’ healthcare system is emerging as a promising export destination for American firms as demand for health information technology (IT) continues to grow, according to the United States Commercial Service (USCS).

In a briefer, the trade promotion arm of the US Department of Commerce’s (DOC) International Trade Administration (ITA) said the country’s growing healthcare industry, backed by strong private sector investment and robust demand for advanced diagnostics, is creating strong demand for US-made medical technologies.

USCS estimated that around 99 percent of medical devices in the country are imported, with the US accounting for 12.3 percent of the market share.

While China holds a larger market share of around 20.5 percent, the US agency said American exporters are well-positioned to grow their presence given the local sector’s active pursuit of high-value equipment and innovative solutions.

In particular, USCS said companies may find export opportunities for low-volume, high-value equipment to support hospitals’ efforts to upgrade their specialized services.

Currently, some of the US’ largest medical device companies are already present in the country, including Baxter, Johnson & Johnson, Medtronic, GE Healthcare, and Varian.

Under health IT, USCS said the local healthcare market also offers export potential in electronic medical records (EMR) systems, in line with ongoing efforts to streamline healthcare services.

Since many private hospitals in the country’s urban areas have already adopted EMR systems, US firms may capitalize on opportunities among hospitals in rural regions that still rely on pen and paper for documentation.

“While internet connectivity remains a challenge for provinces and rural regions, this presents an opportunity for US service providers to develop EMR systems that can be transmitted easily, are scalable, and can be integrated into current systems,” it said.

American firms may also consider participating in healthcare projects under the public-private partnership (PPP) model to further expand their presence in the country, according to USCS.

“Numerous healthcare projects under the PPP center exist, ranging from the design, construction, and operation of urban hospitals to hemodialysis centers, as well as the procurement of capital equipment and hospital expansions,” it added.

To ensure growth in the market, USCS said American firms should also look into appointing a local distributor to handle government permits, as well as in-country marketing, sales, and after-sales support.

USCS noted that companies should consider competitive pricing in the market due to the country’s high out-of-pocket healthcare expenses.