Financial burden of treating asthma in Dubai



DUBAI // The financial burden of treating asthma in Dubai could be as high as Dh130 million a year, experts say.

Hospital visits account for about 40 per cent of this figure – visits which are a burden and often unnecessary.

Health officials now have called for more awareness, a centralised electronic database in Dubai and the establishment of special asthma centres to tackle this soaring cost.

A study four years ago put the figure at Dh88 million, said Dr Bassam Mahboub, who heads the Rashid Hospital respiratory and pulmonary unit, but now it is much higher.

The figures are also high in Western countries but the way money is spent is more efficient, he said.

“What is different between our standing on asthma compared to the western countries is we spend a lot of money for people who spend a lot of time in the hospital,” said Dr Mahboub.

At least 14 per cent of residents in the emirate have been diagnosed with the condition.

There needs to be a “global strategy in the UAE to reduce the impact [of asthma] in many ways – lifestyle, quality of life, cost, and morbidity and mortality”, said Dr Pierre Majdalani, specialist in paediatric pulmonology at Dr Sulaiman Al Habib Medical Centre.

Far fewer asthmatic patients seek emergency treatment in Europe in comparison, said Dr Majdalani.

“It means the patients are not well-controlled on their medication and they are not following their treatment or they are not diagnosed correctly,” he said.

“It’s definitely increased the burden on the health system because the emergency room and emergency department are made for casualties and these people in 2014 shouldn’t be coming to the emergency room because they didn’t take their medication,” said Dr Mahboub

Dubai’s health insurance scheme, which went into effect in February and will be rolled out until 2016, could help stem the burden, he added.

“Most of these people are not within our insurance health system,” he said, referring to those who use emergency rooms for conditions such as asthma.

“They are most likely not insured.”

That means hospital and emergency visits could fall in comparison with consultations, as more people are insured.

“But we do have to stress upon the compliance with the medication,” said Dr Mahboub.

A centralised electronic medical database could also help, he said.

Abu Dhabi introduced an emirate-wide system last year but Dubai has yet to follow suit.

Both doctors have called for increased awareness about the condition. “Once we increase this kind of awareness, I think we will have more control of asthmatics,” said Dr Mahboub.

Patients also should take their medication, even on days when they feel well – not just when they feel they need it, he added.

“The problem with this disease is that you have good days and bad days.”

Another way to stem the cost could be to set up asthma centres, as has been done for other diseases such as diabetes, said Dr Majdalani. “When you take good control of asthma in general, you reduce the cost by far – you might reduce the rate of visitations, [emergency room] visits and the rate of doctor visits in the clinic,” he said.

Misdiagnosis can could also be inflating the cost, said Dr Majdalani. Some doctors over-prescribe medication.

“There is a lack of education [among] doctors and patients,” he said.

Dr Mahboub said doctors are also carrying out a similar study in Abu Dhabi to investigate the financial burden of asthma.

Asthma is a chronic inflammatory respiratory disease whose symptoms include tightness of the chest, shortness of breath and coughing.

About 235 million people worldwide suffer from it, according to the World Health Organisation.

Inhaled substances and particles that can provoke allergic reactions or irritate the airways form the strongest risk factors for the condition.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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