Industry reports, briefs issued by Samsung Economic Research Institute
Although the advancements in medical technologies and medicines have turned hard-to-cure diseases such as cancer, cardiovascular disorders, diabetes into manageable diseases, exorbitant medical costs are burden for both governments and individuals. The average per capita spending on healthcare in the 31 OECD nations has multiplied rapidly. Consequently, OECD healthcare costs as a percentage of GDP reached 9.7% in 2009 from 5% in 1970. Among OECD countries, the US, in particular, has seen healthcare costs soar, rising from 5.1% in 1960 to 17.6% of GDP in 2010.
The birth of genetic engineering in 1973 opened a new chapter in healthcare. It helps analyze causes of aging, cancer, and dementia and helps predict diseases an individual may be especially vulnerable to. Now, global pharmaceutical companies are developing a medicine that can restore defective genes, which can trigger a disease. Also, IT advancement has lowered the price of imaging diagnosis devices and genome decoding. In the 2014, the latter will cost only US$100. Along with these changes, a new paradigm of healthcare is being opened, the 3.0 stage, which focuses on extending healthy life expectancy through disease prevention and management.
Healthcare 1.0, the era of public health, emphasized pandemic prevention. Healthcare 2.0 concentrated on disease treatment and prolonged longevity significantly through improved treatments and surgery technologies. In Healthcare 3.0, the boundaries of pharmaceutical, medical equipment and medical service businesses will become blurred and business models and industry’s competitive structure will realign radically