Opportunities in the Healthcare Market in Bahrain

Scope & Limitations

Bahrain’s investment opportunities range across speciality services, medical tourism, the PPP space and care delivery

Heart disease & Diabetes Mellitus leading causes of death. Bahrainis increasingly prefer private hospitals: public hospitals have long wait times

Government initiatives on PPP and universal health coverage create growth opportunities for private sector

GCC population in 2016: ~54 Mn growing at a CAGR of 2.8% offers good investment opportunities

Expats dominate with 53%; only 47% are Bahraini nationals. High expat ratio drives healthcare demand

Bahrain recorded GDP growth of 3.5% to reach USD 32 Bn in 2016. Positioned in top half of GCC nations in growth terms

GDP per capita for Bahrain was USD 24,119 in 2016, grew at a CAGR of 2.1% between 2010 and 2016

Healthcare industry shows positive trend with constant increase in expenditure, irrespective of the oil price trend

Bahrain’s Infant Mortality Rate relatively lower, as compared to other GCC countries; Average Life Expectancy is 77 years

Of the population, 35% is obese; Heart Disease, NCDs and Diabetes Mellitus are the leading causes of deaths in Bahrain

Bahrain’s Healthcare structure is governed by the NHRA; the MoH plays the role of the principal healthcare service provider

Public Healthcare Sector contributes 63% of total healthcare expenditure; private healthcare sector grew faster at ~28%

Private sector contribution to beds only 18%, although hospital numbers higher. Govt. scheme for mandatory social health insurance to drive growth

Bed density grew at a CAGR of ~2.2% to reach 1.95 per 1,000 population in 2014. Expected to rise further driven by government initiatives

Ratio of Physicians and Nurses per 1000 population is quite low at 0.92 and 2.37, respectively, against desired benchmarks of 2.5 and 7.5, respectively

In-patient and Out-patient Visits are higher in the Public Sector. However private sector drives growth

Growth in both OP (6.7%) and IP (12.7%) for private hospitals higher compared to public hospitals; however, patient visits higher for public hospitals

Based on analysis of Demand-Supply, a Gap of ~1,176 beds seen in Bahrain by 2022

Health payer and coverage scenario: Nationals

Health payer and coverage scenario: Expatriates (1/2)

Health payer and coverage scenario: Expatriates (2/2)

Speciality service mapping shows huge growth opportunities in Endocrinology, Neurology, Ophthalmology and Cardiac Sciences

OBGYN, General Medicine, and ER account for majority of the volumes even in the Public Sector

Rising Medical cost and higher healthcare IT spending are some business opportunities for GCC healthcare service providers

MoH’s 18 new projects worth USD 718 million and mandatory health insurance to create investment opportunities for PPP

Evaluate provision of niche speciality services in tandem with Bahrain’s tourism potential

Maximise opportunities from existing products and markets; systematically explore new products, markets, including inorganic Opportunities

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