Health insurers report a big jump in policyholders using telehealth compared to pre-pandemic levels
Health insurers in the UAE have reported that a big jump in policyholders using telehealth services during the ongoing coronavirus crisis compared to pre-pandemic levels.
According to new research from global professional services firm Alvarez & Marsal, the Covid-19 pandemic has accelerated telehealth usage across the UAE, with virtual health services "here to stay".
It said the UAE telehealth market is expected to grow at a compound annual growth rate (CAGR) of 25 percent per year from 2020 to an estimated $536.5 million by 2025.
Telehealth may become the next frontier to cope with public health crises and a key pillar of post Covid-19 patient care, the report added.
A total of 91 percent of UAE insurers reported that their policyholders recently used telehealth services, as opposed to 31 percent pre-pandemic, representing an increase of 60 percent as a result of the pandemic.
Over 50 percent of expats in the UAE are likely to use telehealth for primary care, 14 percent more than the global average, the report noted.
"Post-Covid-19, leading healthcare payers are making investments, building partnerships, and exploring acquisitions that will further expand their business models and contain costs as providers are paving the way for future hybrid care models," said Alvarez & Marsal.
In 2020, the UAE also noted an increase of 8 percent in insurance premiums, exceeding the inflation rate. Given that Dubai healthcare expenditure is on the rise, and with employers shouldering the burden due to compulsory insurance, regional payers are modifying reimbursement policies to accelerate the shift to value-based reimbursement models, it added.
The report also revealed that the number of hospitals in the UAE has been steadily growing year-on-year, at a rate of 6.2 percent per annum, leading to an increasingly competitive healthcare provider market.
Increased market supply has increased healthcare provider market competition, shifting focus to operational agility and revenue diversification, it added.
Karim Benhameurlaine, managing director and head of healthcare and life sciences Middle East with Alvarez & Marsal’s Strategy and Performance Improvement, said: “The Covid-19 pandemic has caused and amplified numerous foundational shifts. We see increasing consumer involvement in healthcare decision making. The rapid adoption of telehealth service digital services, new strategic partnerships, as well as vertical and horizontal integrations, are enabling access to new market segments along with procurement and manpower operational efficiencies.
"While regulatory authorities have greatly supported the UAE’s digital transformation, the current dynamics are challenging other stakeholders across the region to innovate and collaborate.”
Dr Sara Alom Ruiz, senior director healthcare and life sciences Middle East with Alvarez & Marsal Strategy and Performance Improvement, added: “The pandemic has had a multifaceted impact on healthcare providers. There continues to be a shift in patient demands, as well as an increase in competition and cost pressures.
"Going forward, organisations looking for opportunities will need to focus on transformation programs that increase operational efficiency, evolve processes to adapt to changes in patient behaviors and work towards growing alterative revenue streams that enable overall revenue growth.”
---
Quelle/Source: Arabian Business, 30.05.2021
Bitte besuchen Sie/Please visit:
