This post came out from The Straits Times (3 December 2016)
A new social enterprise wants to shake up the adult diapers
market by offering a cheaper option for those who cannot afford the $200 to
$300 that it can cost for a month's supply. Home Care Enterprises (HCE), set up
by Changi General Hospital (CGH) last December, decided to enter the market
after CGH staff learnt that some patients struggle to afford necessities such
as adult diapers.
In some cases, patients at home changed diapers only
twice a day - compared to the average of five or six times daily - to save on
costs. Such infrequent changes can lead to bedsores, infections and
complications - and more stays in hospital. HCE will launch the Confidence
brand of diapers next month at 65 cents a piece. Its general manager Benjamin
Cheam said this is about 30 per cent cheaper than the median price of popular
brands such as Tena Value and Lille Suprem Fit.
CGH chairman Gerard Ee said: "Our diapers will
shake the market. We hope other distributors will lower their prices. Even if
they don't, this will provide (patients with) a real alternative." The
diapers are made in Indonesia, and HCE is able to sell them at a lower price as
it does not spend on advertising and fees for middlemen, and it keeps its
profit margin low, at about 10 per cent, Mr Ee said. Checks by The Straits
Times found the most commonly found adult diaper brand in shops here is Tena
Value, which costs between $9 and $10.70 for 10 pieces at supermarkets and pharmacies.
Ms Zahara Mahmood, assistant director of the
Neighbours programme - which aims to reduce the number of hospital admissions
of the frail elderly - said 60 per cent of some 300 seniors regularly admitted
to CGH depend on diapers. She said some of these patients scrimp and save on
diapers, only to face other problems. A former cleaner in his 60s who is
incontinent, for instance, changed his diapers only twice a day to save money
as each costs $1.20. But the man ended up getting urinary tract infections and
was hospitalised two or three times in a month.
The launch of the diapers will come about a year
after HCE's first product, an electric homecare bed - similar to the ones used
in hospitals - hit the market last December. Before the launch of HCE's bed,
suppliers were selling their versions from just over $2,000 to about $23,000,
Mr Cheam said. But suppliers have lowered their prices by 10 to 15 per cent
after HCE launched its bed at $1,500, he added. Checks by ST found that the
bulk of homecare beds on the market now cost between $1,200 and over $3,000.
Mr Ee said: "We are not competing against the
lowest-priced products, as we want to maintain quality. We are here to effect
change." HCE aims to keep its profit margins low and supply quality
products at a lower cost. But it has to be profitable to keep the enterprise
sustainable, to pay salaries and develop new products, he added. Besides
selling beds, HCE also rents beds out for $200 a month to those who need them
temporarily. And B2 and C class CGH patients also get a subsidy for the first
three months for diapers and bed rental. This is to help them in their
transition from hospital to home.
Thoughts anyone?
Yours,
Something Small Thinking Big
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