[Federal Register Volume 79, Number 181 (Thursday, September 18, 2014)]
[Notices]
[Pages 56062-56064]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22313]



[[Page 56062]]

-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration


Healthcare and Medical Trade Mission to the Philippines and 
Indonesia, February 9-13, 2015

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

-----------------------------------------------------------------------

Mission Description

    The United States Department of Commerce, International Trade 
Administration, is organizing a Healthcare and Medical focused Trade 
Mission to Manila, Philippines and Jakarta, Indonesia February 9-13, 
2015.
    The Healthcare and Medical Trade Mission to the Philippines and 
Indonesia will include representatives from a variety of U.S. medical/
healthcare industry manufacturers (equipment/devices, laboratory 
equipment, emergency equipment, diagnostic, physiotherapy and 
orthopedic, healthcare information technology, and other allied 
sectors), service providers, and trade associations and organizations. 
The mission will introduce the participants to the appropriate 
government agencies, end-users, and prospective partners whose needs 
and capabilities are best suited to each U.S. participant's strengths.
    Participating in an official U.S. industry delegation, rather than 
traveling on their own, will enhance the participants' ability to 
secure meetings. The delegates will meet with government officials to 
obtain firsthand information about the regulations, policies and 
procedures in the healthcare industry in this region. It will also be 
an opportunity for participants to visit healthcare facilities to get 
acquainted with hospital operations.
    Growing market demand, a Public-Private Partnership program aimed 
at addressing the needs of the healthcare industry, and government 
supported medical tourism drive the demand for quality in Philippine 
healthcare services. Some private hospitals are accredited or are in 
the process of receiving accreditation from international bodies such 
as the Joint Commission International (JCI). Aside from one-on-one 
appointments and briefings, mission delegates will have the opportunity 
to interact with Embassy/Consulate Officials and Commercial Service 
Manila staff to discuss industry developments, opportunities, and sales 
strategies.
    Continued strong growth over the next few years and the Indonesian 
government's recent implementation of the National Health Insurance 
Plan earlier this year, provide an excellent opportunity for U.S.-based 
Healthcare manufacturers and service providers. The delegates will have 
access to Indonesian government officials and Commercial Service 
Jakarta staff to learn more about opportunities in the market and 
current industry developments. Mission delegates will also participate 
in one-on-one business matchmaking meetings, briefings led by 
government officials and industry experts, and a networking reception.

Commercial Setting

Philippines

    Demand for healthcare in the Philippines continues to grow, driven 
by several factors--a growing population, growing annual per capita 
income, an increased spending on medical care and growing investments 
in healthcare facilities. Healthcare spending in the Philippines is 
estimated at USD 9 billion in 2013 with a projected 10% increase in 
2014. Approximately 64% of the labor force is fully employed, many with 
access to health insurance for themselves and for their dependents 
(spouse and minor children and/or parents above 60 years old). 
Currently, there are more than 1,700 licensed hospitals in the country, 
of which more than 60% are privately owned. Total bed capacity is more 
than 90,000.
    The Philippine healthcare industry presents a good opportunity for 
U.S. firms. Although relatively small, the medical device market is 
almost 100% imported, with a strong U.S. presence. Despite their 
perceived higher costs, American products enjoy a prominent place in 
the market due to U.S.-trained Filipino doctors and their preference 
for the high technology of American medical equipment and instruments. 
Most hospital managers also prefer U.S. technology over other foreign 
brands, although U.S. manufacturers are facing growing competition from 
Germany, the Netherlands, and Japan. U.S. products generally perform 
well with high value, low volume medical equipment and dominate the 
market for durables (medical devices) such as ultrasound equipment, 
magnetic resonance imaging (MRI) equipment, breathing equipment, and 
other radiology and electronic medical equipment. In addition to 
private investments, the government's Public-Private Partnership 
program allows private sector consortiums to finance, design, build, 
operate, and maintain a hospital for a maximum period of 25 years, 
after which time these hospitals will be turned over to the Department 
of Health. The Public Private Partnership will not only improve the 
facilities, but also the healthcare delivery system, making medical 
care accessible to more Filipinos.
    Besides opportunities presented through the Public Private 
Partnership program, constant requirements for updated healthcare 
services, new technologies, and equipment replacement drive market 
growth. Hospitals continue upgrading facilities to remain competitive. 
Several investment companies have acquired stakes in the healthcare 
sector, providing much-needed capital for facilities to upgrade and 
modernize equipment. Real estate developers have also partnered with 
known healthcare providers to construct health and wellness centers in 
and around the communities that they are building, adding more appeal 
to the community and more value to the real estate.

Indonesia

    Given the large population and steady economic growth, Indonesia 
presents excellent opportunities for U.S. companies. An increase in 
public awareness about the importance of healthcare, the expansion of 
public and private hospitals, and the government's plan to implement 
universal health insurance coverage in 2014, have led to an increased 
demand for more sophisticated and modern medical equipment and 
supplies. Total imports of medical equipment grew from USD 612 million 
in 2011 to USD 727 million in 2012, with U.S. imports accounting for 10 
percent of this market. Continued strong growth is predicted over the 
next two years and U.S. manufacturers of medical devices should take 
advantage of this growing market.
    Being the fourth most populous country in the world, Indonesia 
offers great potential for the medical equipment and supplies market. 
Healthcare is a top priority in Indonesia's national development 
agenda. In 2014, the Government of Indonesia allocated a total of USD 
6.1 billion for healthcare, an increase of 26 percent over 2013. Over 
20 percent of this amount is designated for medical equipment. In 
addition, the Ministry of Health will allocate a separate budget for 
the development of new hospitals and upgrades for existing hospitals 
and health care centers in the 33 provinces. Indonesia began 
implementing its National Health Insurance Plan this year with the goal 
of universal coverage of the country's population of 257 million people 
by 2019. The initial phase is

[[Page 56063]]

targeted at covering approximately 90 million citizens, which includes 
mostly the market segment that the government calls ``the poor and 
near-poor.''
    Healthcare providers show a growing interest in high technology 
equipment to improve the delivery and quality of their services. The 
government is encouraging more private sector involvement. Ciputra 
Group, a major property developer, plans to build up to 10 hospitals 
within the next five years with an estimated investment of USD 130 
million. In September 2013, the Siloam Hospital Group announced a plan 
to spend USD 400 million through 2017 to develop new hospitals and buy 
medical equipment. The group will open six new hospitals by the end of 
2014, adding to its existing 14 hospitals. In October 2008, an official 
ground-breaking ceremony for the construction of a USD 7 billion 
Jababeka Medical City project took place. The city will consist of 
world-class healthcare facilities, a hotel and apartments, research 
centers, and shopping center. The city is scheduled for completion by 
2015.
    Government agencies such as the Ministry of Health and the National 
Food and Drug Control Agency (BPOM) are stepping up efforts to 
institute policies to protect the public from sub-standard and 
dangerous pharmaceuticals and medical equipment/supplies. For instance, 
agencies are participating in international programs to curb the entry 
of black market products and also increase the training of healthcare 
professionals and regulators. Associations are also encouraging company 
members to adopt international best practices.

Mission Goals

    The goals of the Healthcare and Medical Trade Mission to the 
Philippines and Indonesia are to:
    (1) Familiarize the participants with the current healthcare 
situations as well as and current developments taking place;
    (2) Introduce participants to government officials and industry 
leaders to learn about various regulatory procedures and policies in 
the healthcare sector;
    (3) Introduce participants to potential business partners.

Mission Scenarios

Philippines

    On Monday, 9 February, the first official day of the Healthcare and 
Medical Trade Mission, Officers from various sections of the U.S. 
Embassy--Commercial Service, Economic, Consular, Political, and USAID, 
as well as the American Chamber of Commerce in the Philippines 
(AmCham), will give a country briefing. These briefings will be 
followed by a series of industry briefings from officers of the 
Department of Health (DOH); the Center for Device Regulation, Radiation 
Health, and Research (CDRRHR); the Food and Drug Administration (FDA); 
and the private sector Pharmaceutical and Healthcare Industry of the 
Philippines (PHAP). Mission participants will learn about the 
healthcare policies, procedures and opportunities in the market.
    The briefings will be followed by a site visit to a local hospital 
for a tour of the facilities.
    The Ambassador will host a networking reception arranged at the end 
of the day. Officials from the DOH, CDRRHR, FDA, PHAP, and importer-
distributors of health devices, technology, and supplies, will be 
invited to this event.
    On the second day (Tuesday, 10 February), delegates will have one-
on-one meetings with prospective distributors and business partners who 
have expressed interest in the TM delegates' products.
    Wednesday, 11 February, will be a travel day from Manila to 
Jakarta.

Indonesia

    On Thursday morning, 12 February, the first official day of the 
Jakarta, Indonesia mission stop, delegates will attend briefings at the 
hotel conducted by the U.S. Embassy, the American Chamber of Commerce's 
Pharmaceutical and Life Sciences Committee, and Ministry of Health 
officials.
    The briefings will be followed by one-on-one meetings with 
prescreened prospective distributors and business partners who have 
expressed interest in the TM delegates' products. Visits to hospital 
facilities may be arranged as an option.
    The Ambassador will host a networking reception arranged at the end 
of the day. Government officials, representatives from industry 
associations and local business people will be invited to this event.
    Friday, 13 February, will be focused on one-on-one meetings at the 
hotel. Additional site visits can be arranged depending on the 
interests and objectives of the participants.

Proposed Timetable

    Mission participants are encouraged to arrive 1-2 days prior (7 or 
8 February) to allow time to adjust to their new surroundings before 
the mission program begins on Monday, 9 February.

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Monday, 9 February................  Embassy, Department of Health, and
                                     Industry Association Briefing at
                                     the hotel.
                                    Hospital Site Visit.
                                    Networking reception at Ambassador's
                                     residence.
Tuesday, 10 February..............  One-on-One business matchmaking
                                     appointments.
Wednesday, 11 February............  Travel day from Manila to Jakarta.
Thursday, 12 February.............  Indonesia Country Briefing with U.S.
                                     Embassy and Briefing with AmCham
                                     Healthcare Committee Leaders.
                                    Briefing with Ministry of Health and/
                                     or local industry associations.
                                    One-on-One business matchmaking
                                     appointments or site visits.
                                    Networking reception at Ambassador's
                                     residence.
Friday, 13 February...............  One-on-One business matchmaking
                                     appointments or site visits.
------------------------------------------------------------------------

Participation Requirements

    All parties interested in participating in the Healthcare and 
Medical Trade Mission to the Philippines must complete and submit an 
application for consideration by the Department of Commerce. All 
applicants will be evaluated on their ability to meet certain 
conditions and best satisfy the selection criteria as outlined below. A 
minimum of 15 and a maximum of 20 companies will be selected to 
participate in the mission from the applicant pool. U.S. companies 
already doing business in the Philippines and/or Indonesia as well as 
U.S. companies seeking to enter either market for the first time may 
apply.

Fees and Expenses

    After a company or organization has been selected to participate on 
the mission, a payment to the Department of Commerce in the form of a 
participation fee is required.

[[Page 56064]]

    The Healthcare and Medical Trade Mission participation fee will be 
$3,250 for SMEs \1\ and $4,000 for Large Firms.
---------------------------------------------------------------------------

    \1\ An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations 
(see http://www.sba.gov/services/contractingopportunities/sizestandardstopics/index.html). Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing reflects the Commercial Service's user fee schedule 
that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
---------------------------------------------------------------------------

    Personal expenses for lodging, some meals, incidentals, and travel 
(except for transportation to and from meetings/site visits/networking 
receptions) will be the responsibility of each mission participant.

Conditions for Participation

    An applicant must submit a completed and signed mission application 
and supplemental application materials, including adequate information 
on the company's products and/or services, (or in the case of a trade 
association or trade organization, information on the products and/or 
services of the companies to be represented on the trade mission), 
primary market objectives, and goals for participation. If the 
Department of Commerce receives an incomplete application, the 
Department may reject the application, request additional information, 
or take the lack of information into account when evaluating the 
applications.
    Each applicant must also certify that the products and services it 
seeks to export through the mission are either produced in the United 
States, or, if not, marketed under the name of a U.S. firm and have at 
least fifty-one percent U.S. content. In the case of a trade 
association or trade organization, the applicant must certify that, for 
each company to be represented by the trade association or trade 
organization, the products and services the represented company seeks 
to export are either produced in the United States, or, if not, 
marketed under the name of a U.S. firm and have at least fifty-one 
percent U.S. content.

Selection Criteria for Participation

    Selection will be based on the following criteria:
     Suitability of a company's (or, the case of a trade 
association or trade organization, represented companies') products or 
services to the mission's goals.
     Company's (or, in the case of a trade association or trade 
organization, represented companies') potential for business in the 
target market, including likelihood of exports resulting from the trade 
mission.
     Consistency of the applicant's goals and objectives with 
the stated scope of the trade mission.
    Referrals from political organizations and any documents containing 
references to partisan political activities (including political 
contributions) will be removed from an applicant's submission and not 
considered during the selection process.

Timeframe for Recruitment and Applications

    Mission recruitment will be conducted in an open and public manner, 
including publication in the Federal Register (http://www.gpoaccess.gov/fr), posting on ITA's trade mission calendar--
www.trade.gov/trade-missions--and other Internet Web sites, press 
releases to general and trade media, direct mail, broadcast fax, 
notices by industry trade associations and other multiplier groups, and 
publicity at industry meetings, symposia, conferences, and trade shows.
    Recruitment for the mission will begin immediately and conclude no 
later than 21 November, 2014. The U.S. Department of Commerce will 
review applications and make selection decisions as applications are 
received. We will inform all applicants of selection decisions as soon 
as possible after the applications are reviewed. Applications received 
after the November 21st deadline will be considered only if space and 
scheduling constraints permit.

Contacts

    U.S. Commercial Service Healthcare Team:

Ms. September Secrist, International Trade Specialist, U.S. Export 
Assistance Center--Seattle, 2001 6th Avenue, Suite 2610, Seattle, WA 
98121, Phone: (206) 553-5615 x229, [email protected]
Mr. Michael Waters, International Trade Specialist, U.S. Export 
Assistance Center--Atlanta, 75 Fifth St. NW., Suite 1060, Atlanta, GA 
30308, Phone: (404) 815-1498, [email protected]
Ms. Dey Robles, Commercial Specialist, U.S. Commercial Service--
Philippines, 1201 Roxas Boulevard, Ermita, Manila 1000, Philippines, 
Phone: (63-2) 301-2260, Fax: (63-2) 521-0416, [email protected]
Ms. Sharon Chandra, Commercial Specialist, U.S. Commercial Service--
Indonesia, Wisma Metropolitan II, 3rd Floor Jl. Jend. Sudirman Kav. 29-
31 Jakarta 12920, Indonesia, Phone: +62-21-526-2850, Fax: +62-21-526-
2855, [email protected]

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2014-22313 Filed 9-17-14; 8:45 am]
BILLING CODE 3510-DR-P