NEW INVESTMENT OPPORTUNITIES IN MALDIVIAN HEALTHCARE
& THE WAY AHEAD
In these present times, Maldives is steadily emerging as a progressive nation through the adaptation & implementation of better technology, facilities and work practices, which eventually would help in upscaling the growth of service quality and the country’s economy. Since Maldives is known as the only South-East Asian country with the highest rate of healthcare financing, would you be inquisitive to know about the ongoing investments in Maldives’ Healthcare sector? Are you not curious to know the future of investment opportunities for foreign & private companies into the Healthcare of Maldives?
Through this article, Hospacxx Healthcare Consultancy brings forth key information on the current investment programs and future plans for such investments by foreigners, private companies or fund allocation by the Maldivian Government itself, thereby shedding some light on the future scope for such upcoming opportunities.
HEALTHCARE SPENDING IN MALDIVES
According to a report from Maldives National Health Accounts (2000-2017), it was noted that the Maldivian Government has been making the highest healthcare spending, about 9% of the GDP, in comparison to its neighboring countries, with an estimate spending of only 3% of the GDP. This high healthcare financing has been facilitated over the years by the fast paced & immense economic growth of the country through their tourism sector. According to the Health Statistics Report for 2020 by the Maldivian Ministry of Health, the government health spending skyrocketed in 2020 due to COVID-19 pandemic. Thus, in total more than 16% of the government expenditure was on health.
Further, it was also noted that Development of economic sectors in Maldives enabled a higher budget prioritization for health propelled by an expanded fiscal capacity. This change brought a relatively higher level of government spending resulting substantial reduction in households’ financial burden.
From beginning of the year 2000 until now, the contribution of households’ Out-Of-Pocket expenditure, which accounted for the largest component subsequently declined in later years. Trends emerging from Maldives demonstrates that the fiscal capacity of the country not only expanded but highly prioritized the health sector, which has resulted in greater government health expenditure, both in terms of per capita spending and its share. The government funding (both tax funded system and government funded health insurance scheme) has steadily accelerated over the last one and half decades. It is also noted that the share of donor financing (FDIs & Private investments) in the health sector has not been significant in the past.
According to a report by the U.S Department of State, since the 1980’s, the Maldives Government were open to foreign investments. Although, the policies pertaining to Foreign Direct Investments were unclear with regards to the percentage of shares held by the foreign investors. This could be the cause for decreased rate for foreign investments in Maldives.
As of 2020, the Ministry of Economic Development for Maldives have declared that Foreign Investments into Healthcare sector is allowed with 100% Foreign Shareholding for hospitals; whereas for physiotherapy clinics, laboratories & diagnostics and residential care centres, 75% of foreign shareholding is permitted through government approval with a contract that extends up to 50 years.
ONGOING INVESTMENTS IN MALDIVES
1) On realization of the importance of building health sector resilience to climate change, and implementation of mitigation measures, the Ministry of Health has developed several policies and guidelines to facilitate the changes required. This includes the green climate smart hospital policy to national healthcare waste management policies, in order to achieve the SDGs through establishment of climate resilient health infrastructure in the Maldives.
- The key stakeholders are Ministry of Health, Health Protection Agency, Ministry of National Planning and Infrastructure, Ministry of Environment & Local/City Councils
- This project seeks assistance in the following areas:
- Upgrading existing healthcare facilities to adhere to Green Climate- Smart Healthcare facility strategies.
- Establishing a Green Climate- Smart Hospital in a selected region of the Maldives.
For both projects, the Government prioritizes implementation focus in three key areas out of the ten focus areas, mainly, to reduce carbon footprint in healthcare facilities, reduce toxic chemical emissions through safe management of healthcare waste, and ensure availability of safe water in the healthcare facilities.
2) The Ministry of Health proposed a project that aims to optimize the health service delivery through enhancements to existing services, and redevelopment and expansion of healthcare infrastructure, to meet with the increasing demands owing to the aging population and emerging disease patterns. The project involves upgrading existing health facilities across 16 atolls.
- Facilitating Quality Assurance and Sustainability are the key goals for this project. The key stakeholders in this project are Ministry of Health, Ministry of National Planning and Infrastructure & Local Government Authority.
- Government intends to complement service delivery in health facilities by introducing holiday packages to foreign doctors, so that specialist services are available at health facilities in the peripheries, without having to rely on the referral system to the central government hospital. Government also aims to digitize the laboratories at government hospitals and health centres through a common network in order to bring uniformity in service.
3) The Maldivian government has signed an agreement with Apollo Hospitals to manage the Indira Gandhi Memorial Hospital at Maldives. The hospital will be renovated with an investment of $25 million (around Rs 115 crore).
4) The Maldivian Ministry of Health, in collaboration with the World Health Organization (WHO) had introduced a District Health Information Software Version 2 (DHIS2) in 2019, as a statistical software to assist in better data management, analysis, monitoring & evaluation of key health indicators for informed and/or evidence-based decision making. Currently, the software also works on data of number of outpatients, bed, health workforce, surgeries and observations.
5) To provide financial security and ensure better access to healthcare, all citizens of the Maldives are now covered by a universal health insurance scheme “Aasandha”, fully financed by the government. Aasandha insurance can be used from all local hospitals, private clinics and selected hospitals and establishments abroad.
6) The State Trade Organization of Maldives introduced STO Medical Services, with the opening of the first Pharmacy of STO, to provide quality medicine and hospital necessities for patients and hospitals as effective as possible. STO has also started to equip and upgrade equipment all over the country so that patient diagnosis can be made easier, thereby, reducing the hospital time and reducing cost for both patient and hospital.
CONCLUSION
Maldives has been receiving foreign investments mainly for their tourism sector from countries like US, Australia, India etc. In these present times, the Maldivian government has made more liberations on Healthcare FDI’s, thereby creating many opportunities for private companies and International Investors for a more sustainable advancement in provision of a standard quality healthcare.
Hospacxx Healthcare Consultancy provides their expertise across Indian & International states in services like Planning & designing with project management consultancy, Operations Management consultancy, financial management and more. For more information, you can visit the company website on www.hospaccxconsulting.com or contact us directly.
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