Philippines Radiology Service Market Analysis

Philippines Radiology Service Market Executive Summary

The Philippines Radiology Service market is at around $8.8 Mn in 2023 and is projected to reach $23.7 Mn in 2030, exhibiting a CAGR of 15.2% during the forecast period.

There are many techniques used in radiology. MRI (Magnetic Resonance Imaging) scan is a powerful imaging technique that uses magnets instead of radiation to create images of the body. It is excellent for visualizing soft tissues like the brain, muscles, and organs. Areas investigated through MRI scanning include spinal cord and brain abnormalities, cysts and tumors, joint injuries, breast tissue anomalies, and abdominal and liver irregularities. Radiography is a type of radiological imaging technique which applies X-ray radiation. X-ray mammograph is also a type of radiological imaging technique which is used specifically to identify abnormalities or lesions in the human breast. MRA (Magnetic Resonance Angiogram) scan is an examination that produces detailed versions of the blood vessels in the body. Compared to X-rays, CT (Computed Tomography) uses a low dose of radiation and also provides a better overview of the interior of the body. An ultrasound or sonography is a technique that uses high frequency ways to produce images. As it does not involve the use of radiation it is the most widely used technique for monitoring pregnancy. A Positron Emission Tomography (PET) scan is an advanced technique used to reveal the metabolic or biochemical functions of tissues and organs. Lastly, a Single-Photo Emission Computerized Tomography (SPECT) uses a radioactive substance and a special camera to create 3-D images.

The Philippines faces a significant challenge in managing chronic diseases, placing an immense burden on individuals, families, healthcare system, and the economy. The factors driving the epidemic of chronic diseases in Philippines include urbanization, industrialization, changing dietary habits, sedentary lifestyles, tobacco use, and alcohol consumption. The Philippines Radiology Service Market is thus driven by significant factors such as the increasing burden of chronic diseases, aging population, and growing awareness on early diagnosis. However, high cost, poor healthcare facilities, and shortage of radiologists restrict the growth and potential of the market.

The major players of the Philippines Radiology Service Market are Philippine General Hospital, St. Luke's Medical Centre, Makati Medical Centre, Asian Hospital and Medical Centre, The Medical City, and Cardinal Santos Medical Centre, among others.

Market Dynamics

Market Growth Drivers

Increasing Burden of Chronic Diseases: Non-Communicable Diseases (NCDs) account for a staggering 68% of all deaths in Philippines. To overcome the increasing mortality rates due to the diseases, radiology is the solution. Radiology services play a critical role in the diagnosis and prognosis of the diseases which leads to improved chronic disease management. Moreover, Radiology Service helps prevents potential complications and leads to long-term health outcomes. Due to the significant role of radiology services in chronic disease treatment, the Radiology Service Market experiences full potential growth.

Aging Population: According to the Philippine Statistics Authority (PSA), the number of Filipinos aged 60 years and above has reached to 9.22 Mn in 2020. This geriatric population is more susceptible to chronic health conditions such as diabetes, heart disease, and chronic kidney disease, compared to the younger population and adults. Radiology aids in the overall chronic disease management by offering early intervention in the disease diagnosis. Thus, the aging population leads to the rising demand for radiology services, which contributes to the growth of the Radiology Service Market.

Growing Awareness on Early Diagnosis: As the public in the Philippines understand the benefits of the detecting diseases in their initial stages, there is a rising demand for the imaging techniques such as MRI, CT, and PET scans. Early diagnosis enables timely treatment, improving patient outcomes, and survival rates. As the results of the early diagnosis for disease management achieves success, the Radiology Market experiences a surge in the demand, which in turn also effects the growth of the overall market.

Market Restraints

High Cost: Radiology is an expensive field due to the high cost of equipment like MRI, CT, and PET scanners, each of which can run into millions of dollars. Moreover, the ongoing financial investment needed for regular maintenance, software updates, and specialized technical staff further drives up costs. Consequently, these factors contribute to making radiology services among the most expensive in the medical sector, thereby impacting the growth of the Radiology Service Market.

Poor Healthcare Facilities: As of 2022, only 21% of Philippine provinces had adequate primary care facilities, according to the Department of Health (DOH). Despite the increasing population who is in desperate need for the radiology services for managing diseases, the inadequate and limited healthcare facilities and services hinder the access to the radiology services. This hindrance as a result negatively affects the Radiology Service Market Growth.

Shortage of Radiologists: The Philippines has more than 110 Mn people spread out over thousands of islands. But that population is served by about 2,500 radiologists, which means the Philippines only has about 2 radiologists per 100,000 Filipinos. Thus, it is evident that the demand for radiological services often exceeds the available manpower. Hence, due to the insufficient supply of the radiologists, demand decreases, and the Radiology Service Market growth suffers.

Regulatory Landscape and Reimbursement Scenario

The Food and Drug Administration (FDA) of the Philippines is a health regulatory agency under the Department of Health responsible for the licensing, monitoring, and regulation of the drugs, foods, cosmetics, vaccines, and medical devices in the Republic of the Philippines.

New drug products can enter the Philippines in one of two ways: either an Abridged Review or a Verification Review. Based on a previous evaluation from an RDRA (Reference Drug Regulatory Agency), an Abridged Review is a limited independent examination of particular sections of the dossier or submission for acceptability of use under local conditions and regulatory requirements. This can be used if the drug product, vaccine, or biological has already received approval from an RDRA and is within three years of that approval date. The Verification Review describes an evaluation process in which the FDA merely verifies the submission and confirms that the product complies with the standards, requirements, and registration conditions that have been approved by the RDRAs after the submission has been assessed and approved by at least two (2) RDRAs. The Abridged Review and Verification Review have an approval time period of not more 45 and 30 working days, respectively.

The reimbursement landscape for healthcare in the Philippines is complex and constantly evolving. The government of the Philippines provides funding for a public healthcare system. For some residents, especially the underprivileged, this system offers basic medical care at discounted costs or even without charge. Access to experts and cutting-edge treatments, however, may be restricted. Compared to the public sector, more services are offered by the private healthcare system, such as sophisticated procedures and diagnostics, reduced waiting periods, and choice of medical facilities and experts. A government-owned initiative, the Philippine Health Insurance Corporation (PhilHealth) provides employees in the formal sector and their dependents with a mandated national health insurance plan. A percentage of the cost of hospitalization and specific outpatient services in approved public and private hospitals is covered by PhilHealth. Next, the Social Amelioration Program (SAP) is a government initiative that offers low-income families financial support for a range of needs, including healthcare.

Competitive Landscape

Key Players

Here are some of the major key players in the Philippines Radiology Service Market:

• Philippine General Hospital
• St. Luke's Medical Centre
• Makati Medical Centre
• Asian Hospital and Medical Centre
• The Medical City
• Cardinal Santos Medical Centre
• Manila Doctors Hospital
• University of Santo Tomas Hospital
• Chong Hua Hospital 
• Davao Doctors Hospital
• Ashrey Diagnostic Centre
• iScan Diagnostic Centre