Indonesia's successful Universal Healthcare coverage impacts supplier pricing and margins

Updated: Apr 22


Starting recently around 2014, the Universal Healthcare scheme has achieved significant coverage by 2019 with close to 90% of Indonesian population enrolled and increasing everyday. One of the major by-product of the initiative was indirect price control by making vendor registration mandatory for all government contracts, forcing price transparency. At the same time, adoption of DRG system to cap payout for a specific procedure ensured efficiency boost linked to outcomes. These two factors together has resulted in a significant price drop for the medical device companies who needs to understand the regional and local buying nuances and adjust their go to market strategy accordingly. In one of our research, we found the price for a CV implant product family has dropped by more than 70% in this period.


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Image courtesy: Bill Branson, Wikipedia

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