Overview
The Philippine healthcare sector is split between public and private providers, with recent growth driven by investments, hospital upgrades, and expansion of health IT and medical device opportunities. The government pursues universal health coverage, and the market is largely dependent on imports, creating prospects for U.S. businesses.
Healthcare System Structure
- The system consists of public hospitals focused on preventive care and private hospitals offering specialized treatments.
- Republic Act 11223 established universal health coverage, with automatic national insurance enrollment for all Filipinos.
- Hospital development is concentrated in Calabarzon, Central Luzon, and Metro Manila regions.
- Leading causes of death are ischemic heart diseases, neoplasms, and cerebrovascular diseases.
- The country is an emerging medical tourism destination, ranking 24th in the 2020 Medical Tourism Index.
- Private hospitals are rapidly upgrading to match international standards.
Health IT Market
- The COVID-19 pandemic accelerated adoption of telemedicine and health IT services.
- No comprehensive legislation yet governs health IT, but data standards for interoperability have been mandated.
- Proposed eHealth System and Services Act is still under legislative consideration.
- PhilHealth developed an IT roadmap for standards and implementation in the insurance sector.
- U.S. companies should build relationships with private hospitals to navigate differing procurement processes.
Medical Device Market
- The medical device industry relies heavily on imports, with the U.S. holding a 12% market share.
- Local manufacturing is limited to basic equipment and disposables.
- Demand is high for diagnostic, point-of-care, and cancer treatment devices.
- Hospitals are seeking low-volume, high-value equipment such as CT scans, X-rays, ultrasound, ECG machines, and ventilators.
- Medical devices are classified and regulated per ASEAN directives; registration and notification are required.
Market Entry and Regulatory Requirements
- Distributors are essential for U.S. exporters to manage registration with the Philippine FDA and handle sales and after-sales support.
- Medical devices are regulated through Certificate of Medical Device Notification (CMDN) and Registration (CMDR) processes.
Resources and Contact
- Key agencies: Department of Health, Food and Drug Administration, Medical Device Association of the Philippines, and others.
- Contact: Katrina Domingo, U.S. Commercial Service Philippines ([email protected]).