The State’s private health service sector is missing out on significant opportunities in the growing $US30 billion global trade in health services, a new report has found.
The State’s private health service sector is missing out on significant opportunities in the growing $US30 billion global trade in health services, a new report has found.
Compiled by economic consultants ACIL Tasman, the report says despite the international growth, private health service providers in Western Australia remain a diverse, fragmented industry primarily focused on the domestic market.
“Urgent priority is needed to raise the profile of WA’s health services sector and promote its capabilities both nationally and internationally,” the report says.
The report, Trade in Western Australian Health Industry Services: Directions for Development, makes a number of recommendations targeting the State Government and key industry stakeholders.
Increased resourcing and better coordination of government agencies, as well as the establishment of a ministerial advisory forum on health services, were two key recommendations. The report also recommends the relaxation of national medical visa requirements.
The growth in global health spending as a proportion of GDP during the past two decades is significant, according to the report.
The most recent estimates suggest it is worth between $US3,000 billion and $US4,000 billion a year in Organisation of Economic Co-Development countries.
Global trade in health services was worth about $US30 billion in 2002, and while this is a small figure by comparison, the report says it is still very significant and is growing significantly.
Several modern day occurrences are contributing to the growth, according to the report.
Rising incomes, ageing populations and growth in surgical procedures and new medical technologies are key factors.
In addition, many developing countries face a number of health challenges, such as HIV/Aids, which are providing opportunities for increased trade in health.
The report notes that WA’s proximity to key markets such as Asia and the Middle East give it an edge to win a share of the health services trade.
However, it says the market is highly competitive and there are strong health alliances already formed between countries in these regions and North America and Europe.
In the report’s introduction, Curtin University vice-chancellor Lance Twomey says trade in WA’s private health care services would substantially add to the WA ‘knowledge hub’, which has been promoted in recent years.
“At present, there is no particular focus on industry organisation within Western Australia which could coordinate marketing and implementation, help facilitate companies interested in exporting their skills and services,” Professor Twomey says.
“The private health care system in Western Australia is considerable and influential, and clearly has the capacity and ability to develop export businesses should they so wish.”
However, he also says efforts to promote the private sector needed to be weighed up with the provision of public sector health care in WA, which is currently stretched.
