【普华永道】2024中国台湾健康行业指南英文版_62页_5mb

Summary of Taiwan's Health Industries

Core Content

Taiwan's health industries encompass a high-performing healthcare system and a rapidly growing biomedical sector. The healthcare system is characterised by universal health insurance coverage, a strong focus on digital health, and a strategic push towards innovation. The biomedical industry, which includes biotechnology, pharmaceuticals, and medical devices, is a key pillar of the economy and is supported by government policy and investment.

Main Points

Healthcare System Overview

• Universal Coverage: Taiwan's National Health Insurance (NHI) provides universal and affordable healthcare to its 23 million population, with coverage close to 100%.
• Digital Integration: The system is highly digitalised, using health information technology, including the NHI smart card, to streamline administration, clinical care, and public health management.
• Financial Challenges: Despite its strengths, the NHI faces significant financial strain due to an ageing population, rising healthcare costs, and the "all-you-can-eat" provisions of the insurance scheme, which encourage overuse and wastage of resources.
• Cost Containment: The NHI uses a global budget payment system to control costs, with shortfalls largely absorbed by medical institutions. Premiums are set at 5.17% of monthly salaries, with additional supplementary premiums for certain incomes.
• Workforce Issues: The healthcare workforce, including doctors and nurses, is under strain due to limited funding, long working hours, and low wages, leading to shortages in certain specialties.

Biomedical Industry Overview

• Government Support: The biomedical industry is a strategic priority, with strong policy support and investment creating a comprehensive ecosystem spanning research, development, manufacturing, and marketing.
• Market Size: The industry's total market size reached US$20.2 billion in 2022, with the pharmaceuticals sector being the largest at 46%, followed by medical devices at 31% and biotechnology at 23%.
• Innovation Focus: The industry is shifting towards precision and digital health solutions, which are expected to transform patient care and improve healthcare delivery.

Key Sectors

Biotechnology Sector

• Growth: The biotechnology sector has grown significantly, with a market size of US$4.7 billion in 2022, a fivefold increase since the 2000s.
• Attractiveness: It is highly attractive for investment due to its complete infrastructure, clinical trial experience, and cost-competitive R&D and manufacturing.
• Future Prospects: Continued promotion of innovation and a robust biotech IPO market are expected to drive further growth.

Pharmaceuticals Sector

• Import-Dependent: Taiwan is a net importer of pharmaceuticals, with a market size of US$9.2 billion in 2022, driven by the demand for chronic disease treatments.
• Hospital Market Dominance: The hospital market accounts for 80% of total pharmaceutical sales, limiting profits for drugmakers.
• Reimbursement Challenges: Long reimbursement timelines and annual price reviews further complicate the sector's profitability.
• Government Plans: To address future demand, the government is planning to expedite the approval process for new drugs and provide more funding for breakthrough treatments.

Medical Devices Sector

• Growth Drivers: A rapidly ageing population and increased demand for advanced medical devices are driving growth, with the sector valued at US$6.3 billion in 2022.
• Import Dependency: The sector depends on imports for 60% of its domestic demand, mainly for high-end hospital equipment.
• Export Focus: Local manufacturers rely heavily on exports of mid-to-low-end medical equipment for 60% of their revenue.
• Value Chain Development: Efforts are underway to move up the value chain, focusing on higher-value device manufacturing and adoption of new technologies, supported by government policy.

Key Challenges

• Aging Population: Taiwan is projected to become a super-aged society by 2025, leading to increased healthcare costs and a shrinking workforce.
• Resource Utilisation: High per capita outpatient visits (twice the OECD average) and overprescribing are contributing to resource overuse.
• Financial Pressures: The NHI continues to face deficits, necessitating further reforms and potential premium increases.
• Workforce Retention: Staff shortages and poor working conditions are leading to retention issues, especially in primary care and specialist areas.

Key Links and Resources

• The NHI system is managed by the National Health Insurance Administration (NHIA), which oversees reimbursement, quality control, and research.
• The Ministry of Health and Welfare (MOHW) plays a central role in healthcare governance, including policy development, regulation, and coordination of regional health bureaus.
• The healthcare system is supported by a network of public and private providers, with a strong emphasis on digital integration and innovation.

Conclusion

Taiwan's healthcare system and biomedical industry are both strong and evolving. While the NHI is internationally renowned for its universal coverage and digital capabilities, it faces sustainability challenges due to demographic shifts and financial constraints. The biomedical industry, particularly in biotechnology, pharmaceuticals, and medical devices, is a key driver of growth and innovation, supported by government initiatives and strategic investments. International collaboration and investment are increasingly important for the continued development and expansion of Taiwan's health industries.