Impact of Low Cost Asian
Manufacturing on the
European Medical Devices
Markets
Asia’s Appeal as a Medical Devices Manufacturing
Destination on the Rise
European medical devices companies are actively
considering outsourcing or relocating their
manufacturing to Asia to take advantage of its
significantly lower costs for skilled labour.
The favoured destinations in this respect are
China and India, which are both increasingly
aware of the need to conform to international
manufacturing guidelines and standards.
However, companies must understand the bigger
picture of such a shift before taking any steps in
this direction. For instance, huge differences in
language and culture could pose a major
challenge. English is the preferred language of
business in many parts of Asia such as India and
European companies might find themselves
compelled to use it for business purposes even if it
is not their first language. Since effective
communication is
essential to keep transition difficulties to a
minimum, companies can consider forming a
management team from the particular Asian
country, with representatives that speak both the
native and the business language.
This Frost & Sullivan research service examines
the impact of three regions within Asia – China,
India and the Association of Southeast Asian
Nations (ASEAN) – on the European medical
devices market.
However, the focus is mainly on China and India. It
discusses opportunities for low-cost medical
devices manufacturing in Asia and assesses the
relative attractiveness of key factors such as
custom
duties, industrial electricity costs and the
availability of skilled labour.
India in Africa medical link-up
India has launched a hi-tech project it says will
provide medical education and better health care
in Africa.
Launched by Indian Foreign Minister Pranab
Mukherjee in Delhi, the project will at first connect
11 African countries with India.
The services will include virtual classes for
medical staff and online medical consultations.
India is highly conscious of China's involvement in
Africa and has announced a number of joint
projects.
Latin America
This region has many economic opportunities in
the future .....including a growing interest and
momentum in the .....medical tourism industry.
Although, not as advanced as a region in medical
tourism as are several countries in Asia, Latin
America has many advantages that it can grow on,
which include:
having a close proximity to North America,
low cost of labor (particularly compared to North
America),
many ‘western’ trained and English speaking
healthcare practitioners, a culture that many
Europeans and North Americans find familiar,
limited medical malpractice costs,
beautiful locations including world-class beaches
and hotels, and a friendly and caring culture.
Undernourishment affects 54 million, in rural and
urban areas alike. Haiti, in the Caribbean, El
Salvador, Guatemala, Honduras and Nicaragua in
Central America, and Argentina, Colombia and
Peru, in South America, are the countries
confronting acute situations today.
Countries in Latin America that are focused on
medical tourism are:
Mexico,
Costa Rica,
Brazil,
Argentina,
Guatemala,
Colombia,
Chile,
and El Salvador (to name just a few of the major
players).
David G. Vequist, Erika Valdez and Billy Morrison
Minimum Essential Requirements
and Standards in Medical Education
(You may recall Dr. King's wife died in a Latin American Hospital, January 30, 2006.)
In Latin America, since the 1960s, the 'Alliance for
Progress' fostered collaboration between South
and North American medical institutions with
impact on the improvement of medical education.
A new immigration law introduced in the United
States in 1977 created major obstacles to the
influx of medical students from Latin America.
Today, the quality of medical education in Latin
American countries varies from excellent to poor.
The Pan American Federation of Association of
Medical Schools (PAFAMS), established in 1962,
and the National Associations of Medical Schools
have made attempts to develop accreditation
standards for Latin American states.
ANDRZEJ WOJTCZAK & M. ROY SCHWARZ
Institute for International Medical Education,
White Plains, New York
United States Of America
Dear Friend,
This is probably one of the longest emails I’ve ever
sent, but it could be the most important.
Across the country we are seeing vigorous debate
about health insurance reform. Unfortunately,
some of the old tactics we know so well are back
— even the viral emails that fly unchecked and
under the radar, spreading all sorts of lies and
distortions.
As President Obama said at the town hall in New
Hampshire,
“where we do disagree, let's disagree over things
that are real, not these wild misrepresentations
that bear no resemblance to anything that's
actually been proposed.”
So let’s start a chain email of our own. At the end
of my email, you’ll find a lot of information about
health insurance reform, distilled into 8 ways
reform provides security and stability to those
with or without coverage,
8 common myths about reform and 8 reasons we
need health insurance
reform now.
Right now, someone you know probably has a
question about reform that could be answered by
what’s below. So what are you waiting for?
Forward this email.
Thanks,
David
David Axelrod
Senior Adviser to the President
P.S. We launched www.WhiteHouse.
gov/realitycheck this week to
knock down the rumors and lies that are floating
around the internet.
You can find the information below, and much
more, there. For example,
we've just added a video of Nancy-Ann DeParle
from our Health Reform
Office tackling a viral email head on. Check it out:
8 ways reform provides security and stability to
those with or without coverage.
Ends Discrimination for Pre-Existing Conditions:
Insurance companies will be prohibited from
refusing you coverage because of your medical
history.
Ends Exorbitant Out-of-Pocket Expenses,
Deductibles or Co-Pays:
Insurance companies will have to abide by yearly
caps on how much they can charge for out-of-
pocket expenses.
Ends Cost-Sharing for Preventive Care:
Insurance companies must fully cover, without
charge, regular checkups and tests that help you
prevent illness, such as mammograms or eye and
foot exams for diabetics.
Ends Dropping of Coverage for Seriously Ill:
Insurance companies will be prohibited from
dropping or watering down insurance coverage for
those who become seriously ill.
Ends Gender Discrimination:
Insurance companies will be prohibited
from charging you more because of your gender.
Ends Annual or Lifetime Caps on Coverage:
Insurance companies will be prevented from
placing annual or lifetime caps on the coverage
you receive.
Extends Coverage for Young Adults:
Children would continue to be eligible for family
coverage through the age of 26.
Guarantees Insurance Renewal:
Insurance companies will be required to renew
any policy as long as the policyholder pays their
premium in full. Insurance companies won't be
allowed to refuse renewal because someone
became sick.
Learn more and get details:
http://www.WhiteHouse.gov/health-
insurance-consumer-protections/
8 common myths about health insurance reform
Reform will stop "rationing" - not increase it:
It’s a myth that reform will mean a "government
takeover" of health care or lead to "rationing." To
the contrary, reform will forbid many forms of
rationing that are currently being used by
insurance companies.
We can’t afford reform:
It's the status quo we can't afford. It’s a myth
that reform will bust the budget. To the contrary,
the President has identified ways to pay for the
vast
majority of the up-front costs by cutting waste,
fraud, and abuse within existing government
health programs; ending big subsidies to
insurance companies; and increasing efficiency
with such steps as coordinating
care and streamlining paperwork. In the long
term, reform can help bring down costs that will
otherwise lead to a fiscal crisis.
Reform would encourage "euthanasia":
It does not. It’s a malicious myth that reform
would encourage or even require euthanasia for
seniors.
For seniors who want to consult with their family
and physicians about end-of life decisions, reform
will help to cover these voluntary, private
consultations for those who want help with these
personal and difficult family decisions.
Vets' health care is safe and sound:
It’s a myth that health insurance reform will affect
veterans' access to the care they get now. To the
contrary, the President's budget significantly
expands coverage
under the VA, extending care to 500,000 more
veterans who were previously excluded. The VA
Healthcare system will continue to be available for
all eligible veterans.
Reform will benefit small business - not burden it:
It’s a myth that health insurance reform will hurt
small businesses. To the contrary, reform will ease
the burdens on small businesses, provide tax
credits to help them pay for employee coverage
and help level the playing field with big firms who
pay much less to cover their employees
on average.
Your Medicare is safe, and stronger with reform:
It’s myth that Health Insurance Reform would be
financed by cutting Medicare benefits. To the
contrary, reform will improve the long-term
financial health of Medicare, ensure better
coordination, eliminate waste and unnecessary
subsidies to insurance companies, and help to
close
the Medicare "doughnut" hole to make
prescription drugs more affordable for seniors.
You can keep your own insurance:
It’s myth that reform will force you out of your
current insurance plan or force you to change
doctors. To the contrary, reform will expand your
choices, not eliminate them.
No, government will not do anything with your
bank account:
It is an absurd myth that government will be in
charge of your bank accounts. Health insurance
reform will simplify administration, making it
easier and more convenient for you to pay bills in
a method that you choose. Just like paying a
phone bill or a utility bill, you can pay by
traditional check, or by a direct electronic
payment. And forms will be standardized so they
will be easier to understand. The choice is up to
you – and the same rules of privacy will apply as
they do for all other
electronic payments that people make.
Learn more and get details:
http://www.WhiteHouse.gov/realitycheck
http://www.WhiteHouse.gov/realitycheck/faq
8 Reasons We Need Health Insurance Reform Now
Coverage Denied to Millions:
A recent national survey estimated that 12.6
million non-elderly adults – 36 percent of those
who tried to purchase health insurance directly
from an insurance company in the individual
insurance market – were in fact discriminated
against because of a pre-existing condition in the
previous
three years or dropped from coverage when they
became seriously ill.
Learn more: http://www.healthreform.
gov/reports/denied_coverage/index.html
Less Care for More Costs:
With each passing year, Americans are paying
more for health care coverage. Employer-
sponsored health insurance premiums have nearly
doubled since 2000, a rate three times faster than
wages. In 2008, the average premium for a family
plan purchased through an employer was $12,680,
nearly the annual earnings of a full-time minimum
wage job. Americans pay more than ever for
health insurance, but get less
coverage.
Learn more: http://www.healthreform.
gov/reports/hiddencosts/index.html
Roadblocks to Care for Women:
Women’s reproductive health requires more
regular contact with health care providers,
including yearly pap smears, mammograms, and
obstetric care. Women are also more likely to
report fair or poor health than men (9.5% versus
9.0%). While rates of chronic conditions such as
diabetes and high blood pressure are similar to
men, women are twice as likely to suffer from
headaches and are more likely to experience joint,
back or neck pain. These chronic conditions often
require regular and frequent treatment and follow-
up care.
Learn more: http://www.
healthreform.gov/reports/women/index.html
Hard Times in the Heartland:
Throughout rural America, there are nearly 50
million people who face challenges in accessing
health care. The past several decades have
consistently shown higher rates of poverty,
mortality, uninsurance, and limited access to a
primary health care provider in rural areas. With
the
recent economic downturn, there is potential for
an increase in many of the health disparities and
access concerns that are already elevated in rural
communities.
Learn more: http://www.healthreform.
gov/reports/hardtimes
Small Businesses Struggle to Provide Health
Coverage:
Nearly one-third of the uninsured – 13 million
people – are employees of firms with less than 100
workers. From 2000 to 2007, the proportion of non-
elderly Americans covered by employer-based
health insurance fell from 66% to 61%. Much of
this decline stems from small business. The
percentage of small businesses offering coverage
dropped from 68% to 59%, while large firms held
stable at 99%. About a third of such workers in
firms with fewer than 50 employees obtain
insurance through a spouse.
Learn more: http://www.healthreform.
gov/reports/helpbottomline
The Tragedies are Personal:
Half of all personal bankruptcies are at least
partly the result of medical expenses. The typical
elderly couple
may have to save nearly $300,000 to pay for
health costs not covered by Medicare alone.
Learn more: http://www.healthreform.
gov/reports/inaction
Diminishing Access to Care:
From 2000 to 2007, the proportion of non-
elderly Americans covered by employer-based
health insurance fell from 66% to 61%. An
estimated 87 million people - one in every three
Americans under the age of 65 - were uninsured at
some point in 2007
and 2008. More than 80% of the uninsured are in
working families.
Learn more: http://www.healthreform.
gov/reports/inaction/diminishing/index.
html
The Trends are Troubling:
Without reform, health care costs will continue to
skyrocket unabated, putting unbearable strain on
families, businesses, and state and federal
government budgets.
Perhaps the most visible sign of the need for
health care reform is the 46 million Americans
currently without health insurance - projections
suggest that this number will rise to about 72
million in 2040 in the absence of reform. Donate