heading
 

Vietnam’s  Medical Assistance Situation : Challenges and Views

- Dr. Rafi Kot


As Vietnam has taken the decision to open its gates, in 1989, to the West and took a step of relaxing its approach to the economy and to foreign influx, it has started to face new challenges in multiple sectors. One of them relates to the health industry which quiet directly has taken an adverse effect on the health assistance industry making it a real challenge in terms of access and proper medical service. Here’s Why:

Geography and transport:

Vietnam’s  geographic shape is described by locals as of a dragon. Quick view on the map will show that its an “S” shaped form, 331,114 sq/km, 3670 km of seashore, Bordering China to the North, and Laos and Cambodia to the west.

With its Capital in the North - Hanoi, and its economic Hub- Ho Chi Minh city (HCMC) in the south , –some 1780 km away by road number 1 –Which is  the only main connecting route between north and south. (Lately a new mountain route along the Ho Chi Minh war trail has been opened to alleviate congestion and supply Vietnam with an alternate connection between North and South. Unfortunately this rout is seldom used due to its remoteness )
At the middle of this road are situated two of Vietnam’s other major cities –Hue and Danang, some 80 kms apart.
It is crucial for the reader to understand this, since in between this long stretched road except of these two mid cities, there are many small towns, non however developed enough to be considered as a key player in terms of  medical service provider.

Its worth noticing also that these 4 cities which I have mentioned, are the only cities which operate a 24 hrs all weather airport. All other airports in Vietnam are NDB based and close down at last light.

This has a major impact in terms of accessibility to many parts of the country, which might not be considered remote by land access but very restricted in terms of Air access.

Vietnam’s road conditions have improved considerably in the last 15 years, mainly thanks to Overseas Aid. However, as the Roads improved, so did increase the number of cars and motorbikes on them. Vietnam’s population of 86 million (1.3% Growth rate), has only last year purchased more than 500,000 motorbikes alone... Obviously traffic congestion is at its peak, (as are road accidents) rolling slowly at an average pace of 40-60 km an hour on the highways and slower even in the cities. Just imagine dispatching an ambulance 120 km away, seeing it return after 6-8 hours.

The Air traffic in and out of Vietnam has increased considerably. From once a day Flight to neighboring Thailand and twice weekly to Singapore during the mid-late 90’s, to a  Presently  traffic on these same  routes leaves 3-5 times on a daily base, not mentioning daily direct flights to Europe –Frankfurt, Paris and Moscow,  the Western US Coast, West Asia and Australia . Local low budget carriers stop as well on a daily base in the two major cities, Hanoi and HCMC making travel affordable to a large number of Vietnamese. Taking also in account that flight time from HCMC to BKK is 1hr and 5 minutes and to Singapore 1hr and 45 minutes, (both Destinations with excellent medical facilities) has significant importance and impact on the health and assistance industry, a subject I will touch later.

MAP OF VIETNAM

Red circles : Available Tertiary level Facilities and 24 hr access Airports
Green Circles :  Most Frequently visted sites by Tourists


Economy:

Based on EIU estimates, the economy is valued at US$68.6 billion for 2007 and is expected to stand at  around US$109.1 billion in 2012.

Real growth is estimated at over 7% in the medium term, one of the highest rates in the world, slowing to 6.5% in 2012. GDP in 2007 stood at  834$ per capita. Vietnam hopes to cross the 1000$ per capita at 2010.
However current rise of food, oil prices, weak USD, has contributed to a creeping inflation rate of 15%. In view of the fact that more than 90% of the population does not use banking services, rather deals with cash, makes it even harder to control inflation.

A large part of the economy remains under government control, despite more than two decades of  economic reforms. As a consequence, Vietnam has a large number of unprofitable, outdated State-owned enterprises, which are desperately in need of reform. Pace of reform, however, remains slow.
While a basic market economy appears to be flourishing, the State remains bureaucratic and oriented around command, not market philosophy. This makes Vietnam a difficult country for foreigners to deal with, although arguably conditions are slowly improving.

Population and Demographic indicators:

Based on data of the Ministry of Health, Vietnam’s population in 2007 was estimated at 86 million  The population growth rate has however slowed gradually over the years, from around 1.9% in 1990 to around 1.37% in 2007 ( = + 1.6 million added pop.). This rate is relatively low when compared with other countries in the region. 58% of Vietnam’s population is under 30 years of age.

Despite the rural nature of the country, population density is high, at 252 people per square km in 2005.
Outside the major cities, population density is at its highest in the two main areas of economic activity, the Red River Delta in the north, and the Mekong Delta in the south. Hanoi, the capital, had a population of over 4.6 million in 2007. Vietnam's largest city is Ho Chi Minh City, with a population of just under 8.4 million in 2007.

These number are “official” , although estimates are much higher due to influx of Rural population into the cities in aim of finding work.

Health System

  • Vietnam, although a socialist state, does not have a free health system anymore.
  • Vietnam’s model of social Health insurance seems in public eyes as useless, and is referred more as a tax, rather than a service oriented goal. That leads to payments under the table in order to receive proper medical  treatment
  • Vietnam’s  public health care is overloaded and virtually crushing financially  due to over- demand and government dictated price lists, which are low and non-real cost reflecting .
  • Due to fear of Polarity between “have and have not” Vietnam prohibits sale of Private health Insurance.
  • Vietnam has currently 147,200 beds for its 86 million population. A relatively low number, although an increase of 8% compared to data from 2005.

Leading Causes of Death, 2004   (WHO)                                                         Cases Rate/100,000


                            
                     Intracranial injury                     2,521       Road Accidents                         3.07
                    HIV disease                                  1,754                                                              2.14                                          
                    Transport accident                      1,609     Road  Accidents                         1.96
                    Pneumonia                                   1,224                                                              1.49
                   Intracerebral hemorrhage           1,070          Road  Accidents                       1.30
                   Acute myocardial infarction         775                                                                0.94
                   Stroke                                                  771                                                                0.94
                   Respiratory tuberculosis               770                                                                0.94
                   Heart failure                                       627                                                                0.76
                   Septicemia                                          507                                                                0.62

Data for 2006-7 is not available however it would be accurate to guess that Road accidents have surpassed any other Mortality reason.

Organization:

Vietnam’s health system is based on its socialist model were it is arranged around several layers.

Being a communist country, Vietnam has a strong system of local government organization, based on villages, communes, districts and provinces. However, Village and Commune level have very little to offer in terms of equipment and talent, therefore referral to district hospitals is almost immediate.  A district hospital would typically serve a population of up to 200,000. Since this hospital is budgeted by the district, obviously treatment capacity of these facilities is low-limited, again, making it almost mandatory to refer patients to the Provincial hospitals, which  provide the most specialist care available outside the major cities.

The problem is that the rural population, knowing that the first two layers –Commune and district are useless, often refers itself directly into Provincial hospitals, or even the large city hospital, resulting in overcrowding, sometimes leaving 3 patients sharing a bed.

Each of the 53 provinces has its own Health Service Office reporting to the local People’s Council, which is responsible for drawing up and administering health policies at provincial level.

The Ministry of Public Health is responsible for drawing up and administering health policy at national level.
The vast majority of public hospitals are administered by the district and provincial health service offices.
Government funding for hospitals is provided by the Ministry of Finance.

Until recently, government funding was calculated on the basis of the number and type of hospital beds in each province, but there is now a move to allocate funding according to population size.

But,- The Ministry of Health also has its OWN hospitals- directly funded by itself, and usually these hospital consider themselves “above the rest” in terms of equipment , talent, better budgets. The main and best facilities in this group are located in Hanoi, Danang, Hue, and HCMC.

The Military forces of Vietnam have also their network of hospitals, which are very well equipped and are open for public (income source), excelling mainly in Trauma and burns.

The MOH has circulated a price list for services among the Public hospitals. Prices range from 110 USD for an appendectomy, 85 -115 USD for a variety of Limb Fractures, 8 USD for gastroscopy, 2 USD for an X-ray, 0.20 USD for a CBC, 45USD for a CT scan and 3 USD for an ultrasound. The list remains a list, since The doctors obviously demand some extra for their services.

General Obstacles and Weakness that you should know:

Vietnam’s fast growth has created a high demand for QUALITY medical services.  The fast growth pace of the country has outstripped its local talent. Although funds and budgets in the large cities are quiet in reach, there is a notion, almost a cultural believe. that buying high tech equipment in Hospitals will close Vietnam’s gap in terms of knowledge . This includes many times diagnostic equipment which diagnose pathologies the hospital has no ability or skills  to treat.

However, the fast growth has outstripped talent availability, in terms of numbers and much desired quality.  When it comes to training physicians and nurses,- its a time consuming effort and process. With a weak foreign language knowledge, lack of funds and scholarships, no Post graduate training schemes, No CME system, low salaries and therefore motivation, there is a very small chance Vietnam will be able to close the gap in terms of medical skills and information. In the end of the day, its doctors  who do good medicine, not machines.

With the proximity, plus low travel costs plus no need of visa, and availability of proper medical facilities in neighboring countries, which move ahead as well, the chances for Vietnam to create a critical mass in order to match knowledge and know-how seems even more remote. 

It is estimated by the MOH that between 2006 and 2007 some 30,000 Vietnamese seek medical treatment in neighboring countries spending some 1.3 billion USD.  Leading demand was in disciplines of Oncology and Cardiac Surgery.

A lack of a TRULY screened blood bank and blood by products.  Add also the genetic lack of Rh - among Asians, compared to Caucasians.

The fact that many Provincial hospitals although under same control have different policies and different attitudes.

There are only few hospitals designated for seeing and treating foreign patients. Once a foreign patient is admitted, many times he is kept as long as possible, since the notion is that foreigners pay more. It is also an administrative labyrinth involving letters and permits to see a patient for an external evaluator which wishes to assess the situation and report back.

A system of  phoning and trying placing an overseas GOP does not exist . Many times the foreign clinic asked to evaluate the patient medically, will also place a GOP in behalf of the  assistance company. Except of foreign owned facilities, cashless service is nonexistent.

Many times, a hospital is approached by an evacuation company promising a bonus if patient would be evacuated by them,  resulting in treatment kept to the minimum until patient is evacuated.

Vietnam’s Pharmaceutical market is lacking medications due to excessive  beurocracy, creating a situation were drug companies prefer to import simple medications that sell, rather than items which are needed.

Because all medications in Vietnam need a “visa” given by the MOH only for a year, non transparent re-registration issues, there are continuous problems with availability and continuity. This reflects mainly in terms of sudden lack of int’l standard vaccines for children, among many other items.

The Private Sector:

The private sector is on the rise. An answer to a dilapidating public system. However, since the private sector is highly disregulated it actually siphones patients by Physicians from the Public sector into a non regulated private market.  Once a physician has an “ownership” on his patient,  some of these physicians are re-routing their private patients back into the hospital, this time under their guidance, using and taking advantage of the hospital facility, equipment, operation theatres,  ending pocketing the fees to their own pocket.

This has created a system, although no one will admit,  well functioning,  motivating the doctors to work,  were by now the driving force is coming from the patients rather than the doctors. The idea of regulating this inevitable existing market and taxing it, therfore channeling monies and funds for the poor has not matured yet in the MOH. 

Vietnam has currently(2007) 18 private owned hospitals, 2 private foreign owned, 3,669 Private registered clinics (Single discipline) and 4 private foreign owned medical multi disciplinary centers.

Among the hospitals it’s important to mention the fact that 4 deal with General Medicine, one deals with OBGYN, and one, recently opened will deal with CV disease. These hospitals and the multi disciplinary clinics operate on int’l standards and are able to give most answers in Primary Health care, as well as good response expected of tertiary level facilities. Interesting to mention that hospital groups in neighboring countries are not considering Vietnam as an investment opportunity, rather prefer efflux of patients out of Vietnam.

The Ministry Of health is actually more busy regulating and controlling the private sector than addressing the real problem at the public level.

Rules prohibiting import of refurbished  (and cheaper) medical equipment, prohibiting the facilities  to own their in-house pharmacies, Inability to use public health insurance in private facilities,  daily changing and re-changing regulations- all contribute to a relative lack of interest among private investors in a country were Health care would seem a lucrative business from outside.

Although the MOH and MPI’s (Ministry of Planning and Investment) call fro foreign investors to bring hi tech in and see patients  is loud and echoing- de facto what happens is that outdated regulations “suck” and pull down every effort to renovate and implement high tech. Since the social health insurance refuses to pay for patients seen in Private sector, the number of patients in these facilities is relatively very minor.

The main core of the providers is in Ho Chi Minh city and in Hanoi. Another multi disciplinary center is available in Danang and is the only one actually between Hanoi and HCMC.

The foreign medical facilities have in and outpatient capacities. They are providing services mainly to :
  • Expatriate community
  • Able to pay Locals
  • Tourists

As a General director of such a facility one faces many challenges:

  • Most physicians in such facilities are foreign. They are not easy to find, and many times costly. We as example used to employ until the end 90’s GP’s. Now the demand stemming from foreign and local public is for specialists. We employ 4 pediatricians, A hand surgeon, a general orthopedic surgeon, an 4 OBGYN physicians, 4 internal medicine doctors among many other facilities as QC Lab and own supplied Pharmacy.
  • The continuous thrive to excellence in care following int’l protocols which demand medications not always available, neither in generics, neither in dose. Sourcing and bringing these in remains a constant difficulty.
  • The availability of having single use equipment fitting different sizes – Babies to Grown-ups. All these must be addressed and many times brought from overseas.
  • The ability to continue treatment and same care of a pre medicated patient arriving to reside in Vietnam.
  • The fact that we operate 6 medical centers demand moving into high tech equipment and working modes, - e-filling, Digital Radiology in order everyone to speak with everyone. Its also very important in times of emergency so dual evaluations in real time can be done.
  • Solving the problem of RH- Blood and in general the blood bank- many times using a walking donor file which has to be re-checked every 2 months so it doesn’t become a phantom list when need arrives.
  • The increasing Morbidity and Mortality due to Road traffic accidents is the NUMBER 1 risk for Foreigners in Vietnam. Take in account that Neurosurgery is at its very beginning and located at 2-3 hospitals.
  • With Vietnam’s openness, foreigners start to venture and track into the remote central highlands creating a real challenge in accessibility terms ones an emergency occurs.
  • The ability to conduct evacuations in the most efficient mode, using many times what is available in terms of time, not necessarily what would be optimal.  And yet without compromising patient’s situation.
  • The issue of getting permits for flight Paths over other countries in the shortest time frame remains a constant problem (Lao and Cambodia mainly), many times causing delays.
  • Severe Weather conditions during the rainy season.
  • Last not least, - The challenge working opposite assistance “24 hrs” companies not operating in the region :
  • The very basic LACK OF knowledge and regional DATA as many times surfaces among case directors sitting 15,000km away in their assistance companies, creating many times an automatic steer of patients out of Vietnam into neighboring countries.. Despite our attempts to persuade the opposite
And the minority int’l assistance companies in the region – Well, they prefer to HQ in Singapore or Thailand, although most of their difficult emergency cases actually are coming out of Indochina …..
Alliances forged with hospitals done previously during the “4 year ago trip to S E Asia”… while newer and better facilities are emerging.

Inability to understand Asian mentality, strategies, structure and rivality among receiving hospitals.
The 24 hour emergency number  resulting in a recording directing the patient/dr to call 911. Mainly in cases of North American insurance companies.

The inability of Assistance companies to take a decision, because big decisions can only be taken during day shift, forgetting sometimes world time tables.

Air Ambulance and Exit abilities
Company
Frequency
type
Origin
What’s on board
Prices
availability
remarks
VASCO
On Demand
B200
Vietnam
Stretcher, Oxygen,
Power, All monitoring equipment
Lower than competitor on same route – state owned
Yes
Easy to get flight permits within Vietnam
Medical Wings

On Demand
B350
Thai
Stretcher, Oxygen,
Power, All monitoring equipment
Neonatal incubator Capacity
High,
Private Venture
Non immediate
Needs to divert via int’l airport for exit Visa stamps.
BKK airways

On Demand
ATR 42/72
Thai
Modified stretcher
Power ,monitoring equipment
High due to type of AC
Mostly  at night , because carrying passengers during day time
Will carry Patient ONLY to BKK hospital group.
Thai
X 3Daily
A-300
Thai
Stretcher, Oxygen
Cheap
3-4  days
Short flight -65 minutes
Lufthansa
3days /week
A-340
B-747 400
German
Stretcher, Oxygen
Cheap
1-3 days
Stretcher in BKK Airport
Flt stops in BKK, Short flight -65 minutes then cont to Frankfurt
Singapore Airlines
X2 Daily
B-777
Singapore
Stretcher
Oxygen
Cheap
1 day
Flt time 1:45 hrs
Air France
X 5 Daily
B-747 400
France
Stretcher
Oxygen
EXPENSIVE
2-3
To Europe
Vietnam Airlines
X1 Daily
A-320/1
A-330
Vietnam
Stretcher
Oxygen
Cheap
Same day
If A330, no stretcher ability,  yet.




So, Vietnam, although pacing slowly forwards remains a challenge in terms of medical care, quality and solutions which are not always available, and most probably won’t be for quiet a lengthy period of time and The role and burden on The private sector will probably continue to increase.











More of our useful articles:





Google

www www.Business-in-asia.com
Runckel & Associates LogoContact us


 


Visit our other website: Asia-Art.net
and
www.DelphiHealthServices.com



www.Business-in-Asia.com