South Korea, along with Japan and the Netherlands, is one of the few countries that prohibit the operation of profit-oriented hospitals. However, this trend is beginning to change with the first foreign, for-profit hospital being built in Songdo. The prevalence of chronic diseases due to rapid changes in lifestyle and an increase in the aging population has necessitated efficient and modern systems that offer patients quick and easy access to healthcare services.
New analysis from Frost & Sullivan(http://www.healthcareIT.frost.com), Healthcare Information Technology Market in South Korea, finds that South Korean healthcare IT market was valued at USD 92.8million in 2009 and it is expected to grow at a compound annual growth rate (CAGR) of 6.8 percent from 2009 to 2016. In 2009, South Korea spent USD 66.20billion on healthcare, and further spending is expected in 2016 with an increase to USD 114.40billion.
Hospitals are keen to adopt IT to reduce their operational expenditure and improve the quality of their services. Healthcare IT also aids in seamless medical bill reimbursement.
“A major contributing factor to the high growth rate of the healthcare IT market in South Korea is the government encouragement through disbursement of subsidies and creation of several policies, guidelines, and regulations,” says Frost & Sullivan Research Analyst AmritpallSingh.
Singh further shares, “South Korea has been witnessing significant developments in e-health during the recent past and it has one of the most advanced IT infrastructures in Asia.”
South Korea is shifting from telemedicine to ubiquitous healthcare (u-health), thereby enabling self-care by patients and real-time monitoring by physicians.
The country’s new status as a medical tourism destination has spawned specialty hospitals that have teams of specialists, various facilities, and sophisticated equipment. These hospitals aim to provide high-quality services and thus, are likely to invest in healthcare IT – primarily for insurance reimbursement and in electronic health record (EHR) applications.
“South Korea also plans to make significant improvements in the area of green technologies. This will pave the way for increased eco-friendly management of hospitals and raise the number of ‘intelligent’ products used in hospitals” notes Singh.
Green products that are able to reduce energy consumption by a rate of 30.0 percent are gaining acceptance among hospitals that seek better energy management and smart systems that monitor energy usage.
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