Private healthcare providers to struggle with local expansion, say analysts

Developing countries offer attractive alternatives, though.

Private players like Raffles Medical Group (RFMD) are keeping pace with the expansion of the public health sector but their avenues for growth are limited, according to a report by OCBC.

“According to Frost & Sullivan, Singapore’s private hospital market is expected to grow at a CAGR rate of 13% between 2015 and 2020,” stated the report.

OCBC asserts that the potentially increased demand on top of the longer waiting time could drive patients—especially from the middle- to upper-income group—away from the public sector and into the arms of private healthcare providers.

However, limited headroom for further local expansion in the long run are making private players consider plans for diversification.

Reportedly, RFMD already has hopes of expanding overseas revenue contributions to at least 50% or more. 

Countries of interest for such an expansion would include China, Vietnam, Cambodia, and India. OCBC posits that developing countries in particular provide ideal opportunities since local players are relatively weaker in service.