The International Research-based Pharmaceutical Manufacturers Association (“IRPMA”) commissioned the PricewaterhouseCoopers Financial Advisory Taiwan Ltd. (“PwC”) to produce a study on Taiwan’s healthcare investments in 2023, and held a news conference on its key findings on Aug. 2. The news conference also gathered 14 civil society organizations to urge for cross-caucus support for the government to regard healthcare expenditure as an investment rather than a cost, to create a health sector that is more resilient and sustainable.
According to the study, Taiwan’s current health expenditure (CHE) as a percentage of GDP and drug expenditure as a percentage of GDP, were around 6.1 percent and 1.2 percent respectively, far below other advanced economies. Additionally, compared to the five OECD countries including Japan, Korea, Canada, the UK and German, it becomes apparent that Taiwan has much room for improvement in several healthcare indicators including universal health coverage (UHC). Moreover, as Taiwan’s population ages to become a super-aged society in 2025, healthcare demands for the elderly will exceed NT$620 billion. Therefore, considering healthcare spending as an investment will be key to meeting the growing needs of the population while also bringing in other benefits beyond health. As stated by Hidehito Katsuma, President of IRPMA, “Healthcare investment not only improves health and public health standards but can also lead to economic growth, increased tax revenue, and improved productivity, and strengthen Taiwan’s overall international competitiveness.”
The key policy recommendations outlined in the study are summarized in the following:
- Enhance NHI’s revenue streams and improve the efficiency of resource utilization.
- Establish a short-term goal for Taiwan to have its CHE reach that of OECD countries, which averages at around 8 to 9 percent of the GDP, with a long-term goal to match Japan’s 11 percent.
- Expand reimbursement of new drugs to improve health and patient access and to better aligning with international standards to elevate Taiwan’s global competitiveness in the healthcare sector.
- Establish a cross-ministry taskforce to promote public-private collaboration to elevate managing healthcare expenditure as an investment as a policy goal with input from the private sector, while also establishing health indicators as measures of progress towards said policy goals.
[2023-8-2/Business Today]
