Hospital Helper
    Category: Healthcare By : Sonya Angraini Read : 973 Date : Saturday, September 13, 2014 - 10:46:51


    Ahmad Zamroni / Forbes Indonesia

    Although known for its lighting and household equipment, multinational Philips has been growing its lesser-known healthcare business. Last year, healthcare contributed 44% to Philips’s $31 billion global revenue and is expected to contribute even more this year. Vincent S.K. Chan, general manager of Philips Healthcare Indonesia, says that the trend is also happening in almost every country, including Indonesia, although he declines to give specific figures.

    Philips’s healthcare division in Indonesia has taken several steps to improve its services and aims to record another double-digit growth this year, according to Vincent. Philips not only sells medical equipment, it also provides training for the medical community and financing to help customers to afford its equipment. “We are a solution provider, so we want to provide a holistic set of solutions to the market,” says Vincent, 45 and a Singaporean citizen. “Philips, as a health and well being company, tries to position itself well in this market.”

    Vincent sees plenty of opportunity in Indonesia. As an emerging market, healthcare spending is still relatively small, at only 3% of total GDP, or around Rp 46 trillion. Then there’s a shortage of skilled medical staff including doctors and nurses as well as hospital beds. According to Vincent, this means health services are a good growth story. “We see Indonesia as a long-term commitment and we want to be a long-term player,” he explains.  He adds that the new Badan Penyelenggara Jaminan Sosial (BPJS) system is an opportunity because it can provide more affordable healthcare. However, it also means a challenge for the healthcare system to provide care, as demand will increase under the new system. 

    Vincent is focusing on three ways to grow his healthcare division. First is geographical expansion. Philips currently has five representative offices located in Balikpapan, Jakarta, Medan, Makassar and Surabaya. The company will open two more offices by the end of this year, in Palembang and Semarang. As BPJS is coming in, hospitals are expanding so Vincent sees the need to get closer to the market. He explains demand is no longer just in Java and each location can be the hub for the surrounding area. “Every time we open a branch, I always tell the hospitals that we are their neighbor,” he adds. 

    Secondly, the company provides training and education for medical staff. While others might just sell products and services, Philips puts an emphasis on training doctors, nurses, and technicians. “You can’t just come in, sell your products and walk away. That won’t work,” says Vincent. He explains that some equipment today only has a 10% utilization rate because the lack of training in how to use the equipment. “If that’s the case, then why do customers bother spend so much money on them?” he notes. He also adds that Philips is partnering with several associations in the local healthcare industry. “Our training is more broad-based, it is not only for our customers,” he says. Last year, the company trained about 4,000 medical staff and this year it expects to train a similar number.



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