2009 - Medical Industry, Is Business Playing God for Profits? (kliping)

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MEDICALINDUSTRY

Is businessplayingGod for profits?
"\,!r'ereat doctorssimilar to girlfriendsrwed do anlthingto stayin
their good graces,just so rv€ don't
get dumped."
Thesearenot thewordsofr wise
man;theyare a princ'pleingrsined
within drug promoterswhose task
is to keepdoctorsfaithtulrocenain
drugcompanies
in returnfor hefty
goins;new cars,cash,housesand
oversess
trip with the irnrily - re'
glrdless of the effectnenessof the
presoibeddrugs.
It has becomecommonInowledgeoverthe decudes

that in hospitslsin bigcities,mostdoctorsare
closelytiedto suchpromoters.
According
to on€promoter,
interviewedat a prestigious
hospitslin
CentralJakarta,
conversations
with
doctors revolved mostly around
ssles targers,bonusesor gifts the
doctors would rcc€ive the following month,as weu osthe availability of new drugs and rvhy doctors
switchedto otherdrugcompmies.
Healinsisno lonserasocialtunction- it'sa rip-off
"Everybody knows about it.
But no one6xesit," saysnotedcolnmunity health expert Hasbullalr
Besidesdoctors,hospitaloperators alsoenjoythe Sainsfiom medicine sales,especiallywhen their
doctorspresc.ibenon-g€neric,costIy drugs that are often urmecessary
for patients,
according

to University
of Indonesiam€dicalexpertIwan
Dharmansjah.
"Most of the revenue of ary
hospitalis derjvedfrom drug sales,"
1 "So to make a quick return on
I th€ir invesrment and make nore
I profit, hospitals often force docI tors to overmedicateand overtreat
'I their Datient$"
Indonesian Doctors Association

chairmanFahmiIdris,howeveadismissesthe allegntions.
"lfthere is prooi I will apprehend
the'doctors,"he says.
of
"Ple*e help6nd the evidence
hdonesianPharmrceutical
Company(cP Far$$i) chairnanAnthoDyCh.sunaryris similarlydefimt,
saling thoseare mere rumors, snd
thatpossible

collusioncm beavoided ifdoctorsturn downoffersfto
Pumamawatis Pujiarto,founder
of the Prr€nt CareFoundaiion,says
that while doctors and hospitals
need to turn n profit, there is no
regulationor sup€rvisionto monitor
how theymakethis profir
.iust
'Tvithout supervision, hospitals
often force patientsto undergounnecessary
checksjust to eosuretheir
drugsareirrationallyprescribedand
their medicalfacilitiesdon't stand
idle."shesavs.
A study'by the foundationbetween2006 and 2007 shows54.5
percent of 260 q?es of drugs
prescribedto 55 childr€n suffering
Fom respiratory infections were

fiom Rp 2s billion (US$2.5

million)
to Rp r Eiliion, dependingon the
type,serviceandcapaciry
Once in operation,invcstorscan
rccouptheircapitalwithin thre€to
ftrc yea-rs,saysa hospital investor
speaking
on conditionof anonymiry
Indonesian Hospitsl Union
(PERSI) chajmun Adib A. Yahya
sa'5 hospitalsne€d to be pronlnble
to cover the ei.pensi!€ ol€rhead
incurr€d,with thegor€rnmenttr€ating
justlikeonyotherbusinesr
hoBpitals
"PEtientshave to pay exorbitant
fees becaus€ although we serve
a socialfunction,we don't get tax
cuts and w€ haveto poy electricity bills, just like manufacturers,"
he pointsout.

"The governmenteventoxesthe
dru8ssold to patients,"he adds,denyin8 allegationsthat hospitalsffe
profiteering from the irrotiond use
of drugsondfacilities.
But despite the high overhend
and risk, the hospitalbusinessis
booming,
with demandoutstripping
capacity.
"Many investorswant in on the
businessbecausetbe de_hospital
mandis still huse,especially
in bis
cities,"Adib says.
"In smallercities,businessisn't
sohot,because
itb dimcultto turn a
pront there."
He adds the huge demand is


In most cases,th€ antibioticsare
prescribed without aiy evidence
supportingthe presenceof bacterial
infection,Purnmawati says.
sh€ blamesthis on the symbiosis
built by docton, hospitalsandphsnaceuticalcomparies,which dic- I
tates what drugs doctors prescribe
"The hospitalbusinessis capital'.But itt obviously unethical if
patientsare forcedto takemedicine
they don't need and risk dafiaging
their or€ris just to eNure the hosThe Health Ministry estimates
the cost to set up a hospiial runs

-

-

down to the high ratio ofpopulation
to hospitd capacitFTherErle currendy l,600 patientsfor eachho6pital bed in the country,much higher
dlan the idealratio of400-to-r.

As of last year, there w€re 667
private and 653gorcmmenr hosp!
. teis operstingin Indonesia,up &om
the 491privateand589govemment
hospitali in 1998,accordingto drc
Health Ministry
The scaleendglswth ofthe hospital businesscan be seenin the financial reflorls of severalhospirals
ownedby publicly listedcompanies.
Pmperty developer pT Lippo
Kalawaci, which operatesthe network ofsiloam HosDitaislocetedin
Lippo Villag€,Kebu; Jerul, Surebays and Lippo Cikaran8,r€corded.
r€,renueof Rr 743billion last veer.
Fom its he;l$cue business. uo
19 percentfrom dre 2007 6gure oi
- Rp 627 billion, according to the
€ompany,sannurl report
cross prcfits from the service
rose I3.4 percenrto Rp 186billion
lrst year,up from Rp 164billion in
2007 This accountedfor 15.2Dercent of the company'smtal gioss

pmdq and 29 perceniof its Rp 2.55
t illion totrl revenuelast-b€ds,
v€ar.
Widr 572 operating
the
compags hospid net*Drk occupancyrat€ topp€drs much s5 79
percmt

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