Asia Pacific healthcare markets will see increasingly divergent performances and priorities in 2022, as some countries embrace endemic COVID-19 management, while others continue to guardedly monitor future variants and conservatively shift behavior. 2021 proved to be more tumultuous than expected, with COVID-19 outbreaks and slow progress on vaccinations leading to persistent demand planning challenges that are likely to persist in vaccination laggards in emerging Asia.

Most Ministry of Health (MOH) budgets will be expansionary in 2022, though this will largely be driven by the growing realization that COVID-19-driven spending will remain a priority, while uncertain recovery timelines for non-COVID-19 procedures may put pressure on public budgets if rapid normalization materializes. Supply chain risks and pricing pressures will put stress on payers and patients, which may further bolster more aggressive localization measures, coverage expansion, price controls, and digital health expansions.

Our analysts are constantly evaluating changing market trends to ensure you have the most updated and relevant information for your strategic decisions. Keep reading for our analysis of the key healthcare trends in Asia that you need to pay attention to.

Public healthcare budgets will largely remain expansive

Budget dynamics will shift toward balancing preparedness for future COVID-19 outbreaks with driving care levels back to pre-COVID states. This is likely to eventually drive growing pressure on MOH and social security budgets as governments seek to reduce stimulus measures over the coming years.

Private spending recoveries should improve, though outbreaks remain a risk

For out-of-pocket (OOP) spending, we expect growth to improve as the economy recovers and patients return to hospital settings. Private insurance reimbursement markets will recover as the overall labor market improves, patients increasingly prioritize healthcare insurance, and income levels improve. Rising pricing pressures and lagging economic recoveries may undermine private healthcare spending recoveries over the medium term.

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