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By Ksenia Shcherbino November 2019 Russian market in private healthcare
Uncanny valley effect Russia: a land Too similar to invite a specific approach, yet too different to be of stereotypes easily understood No simple correlation Although Russia holds the 6 th place in the rank of billionaire, and yet 13 per cent of the population lives below the poverty line according to national standards, or twice that based on international norms. Despite its 1.6 growth, Russia’s economy is still smaller than Italy’s or Canada’s Soviet healthcare myth and National patient character and cultural expectations marketing strategy tricks State dominated health care system has a All patients are patients, but Russian patients number of drawbacks – yet it also drives can pose a certain threat to your equilibrium. certain expectations Our Do’s and Don’t guide to handling Russian patients.
Current events – from Brexit to US-China tariff wars - have a definite impact on the healthcare trends and the choice of healthcare destination.
The oldest medical concierge in London, this year we marked our 11th anniversary. Having started with just a few patients (mostly friends and family), we have evolved into a major private healthcare referrer and promoter of British healthcare helping over 2,500 patients every year. 11 2,500+ Years of impeccable Patients per annum reputation 3,000+ Consultants working in over 25 medical fields
Timeline 3 patients Deputy prime minister Olga Golodets 2,773 patients - and we keep growing In the first year AngloMedical signed a contract with AngloMedical organised a visit of Olga AngloMedical ventured into Chinese market and Rusfond , the leading Russian charity. For 10 years participated in UK-China oncology congress. Golodets, deputy prime minister for health we have been taking care of their patients in the It’s all about patients regardless of where they and social affairs who met with a number of UK, with around 20 children coming to London come from or what language they speak. private healthcare companies in the U.K. every year. 2013 2016 2009 2014 2018 Major partnerships CIS expansion AngloMedical starts working with a leading Russian By 2017 AngloMedical has signed memorandums insurance company (SOGAZ of Gazprom family) of cooperation with various CIS embassies, and a number of Russian private hospital charities and healthcare organizations expanding corporations facilitating international visits, master- into Georgia, Kazakhstan, Ukraine, etc. classes and collaboration.
Basic principles: the concept of fairy helper Cultural Patient’s Patient’s needs Seamless pathway Get to know expectations desires them What does the What does the patient What would be the What makes this Cultural expectations patient want? actually need - and quickest? Easiest? particular patient are different and how to put it all Healthies? different? Where have to be explained together? they are coming to the healthcare from? providers. A successful international team must answer all these questions
Russian National Patient Character CULTURAL Russian patients demand attention and love being pampered. They need emotional involvement. HISTORICAL Russian patients are educated enough and often start an argument about their diagnosis. This is backed up by the myth of Soviet healthcare. BUREAUCRATIC 4 3 they need letters signed in blue ink on headed paper and as many stamps as possible. 2 ORGANISATIONAL The journey to securing the payment is never an easy one 1
Basic principles of Soviet healthcare Where do Russian patients come from? What healthcare background shaped their expectations? Home healthcare market is the grand myth of Soviet healthcare, which implies that Soviet system was the best. Soviet system of healthcare had a number of basic principles: - importance of prevention - emphasis on maternity and paediatric services - equal and free access to healthcare - centralized system of healthcare - fight against the roots of disease (both medical and social) - promotion of healthy lifestyle
Health care in the Soviet Union Article 42. Citizens of the USSR have the right to health protection. This right is ensured by free, qualified medical care provided by state health institutions; by extension of the network of therapeutic and health-building institutions; by the development and improvement of safety and hygiene in industry; by carrying out broad prophylactic measures; by measures to improve the environment; by special care for the health of the rising generation, including prohibition of child labour, excluding the work done by children as part of the school curriculum; and by developing research to prevent and reduce the incidence of disease and ensure citizens a long and active life. ( Soviet Constitution, 1936)
Problems with quantitative approach to health care ON THE DECLINE: ON THE RISE: the number of hospitals :from ● the number of people 10,700 to 5,400 seeking medical care : from 3.5 million in 2000 to the number of hospital beds: 3.9 in 2016 from 1.6 mln to 1.2 mln, the number of polyclinics: from ● Operational difficulty 21,300 to 19,100; ● Provision of paid services the number of A&E centres: from 3,172 to 2,458 GDP allocated for healthcare: from 4.5% to 3.5% Quality of services provided
Initiatives of the current government “The State cares for the health of its citizens”. Quality vs Quantity Life expectancy Doctors employed
Current health care issues Paternalistic and ideological attitude 1 to health care Lack of funding and uneven allocation 2 of available funding Unequal distribution of wealth 3 between the regions Inefficient changes and lagging of 4 the system itself Devaluation of the profession. 5 Eminence-based system 6 Politicisation of healthcare and prioritisation of home-made product The Bloomberg Healthcare Efficiency Rankings place Russia at 53rd out of the 56 countries measured (UK – 35th).
Economic data by WTO - Russia’s goal of halving poverty to 6.6% by 2024 can be achieved, even under a modest annual growth scenario. - Growth prospects for 2018-2020 remain modest, forecast at 1.5% to 1.8%. Higher-than-expected oil prices could favorably affect the growth forecast. - A sound macroeconomic framework, with relatively high levels of international reserves ($461 billion), low external debt levels (about 29% of GDP), and comfortable import cover (15.9 months), positions Russia well to absorb external shocks. http://www.worldbank.org/en/country/russia/publication/rer
Key economic and diplomatic periods 2007 diplomatic row between Russia and UK over the death of Andrei Lugovoi 2008 Russian war with Georgia 2009 Thaw in the relationship between USA and Russia 2012 Russia joins WTO 2012 Magnitski law. Angered by a US bill blacklisting Russian officials in connection with the death in custody of lawyer Sergei Magnitsky, Moscow bans Americans from adopting Russian children and stops US-funded non-governmental organisations from working in Russia. Numbers of medical tourists 2014 Russia-Ukraine conflict and takeover of Crimea 2014 The EU and US announce new sanctions against Russia 2015 – 100,000 tourists 2017 diplomatic tit-for-tat involving hundreds of diplomatic staff after the US Congress approved new sanctions for Russia's alleged 2016 – 50,000 medical tourists meddling in the 2016 presidential election 2018 diplomatic row between Russia and UK over novichok poisoning 2017 – 80, 000 medical tourists of Sergey Skripal
Future of the Russian market Complex treatments, 90% surgeries, unique technologies Cancer treatment 85% 2nd opinion and online MDTs 85% Catering to business and 65% families 50% IVF and maternity
Changing profile of the Russian customer: iIf 10 years ago the main emphasis on the Russian market was on the nouveau-riches who went for the most expensive offer, now even HNWI try to blend in and go for the moderate offer. DO: Target audience Being careful, if not outwardly frugal with money, and getting the best deal possible became the new motto of Russian customers. Charities Peculiarities of the Russian target groups Business & expat communities State sponsored treatment is quite scarce (though possible), while charities are numerous and popular. Medical tourism Big companies are unlikely to sponsor companies, study- the treatment of their employees, and abroad agencies big insurance groups are not wiling to send their patients to the UK as there are cheaper options on the market. Each audience demands its own marketing strategy
DO: Define your offer: How are you different? Why are you different? What are your prices? How competitive are you? What are your USPs? Typical gaps in the UK healthcare offer ● Lack of marketing effort ● Lack of proper offer ● Lack of understanding one’s USPs ● Peculiarities of local healthcare
DO: Be aware of other healthcare destination These countries rushed to the Russian market right after the dissolution of the Soviet union, and are traditional considered to be top choice. ● ISRAEL: cheaper, no language barrier ● GERMANY: strong business ties, packaged offers, known on the market ● USA: huge marketing budgets To note: Russia is actively trying to become a new healthcare destination and develop its domestic offer.
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