Health Care Sector Opportunities

1
Health Care Sector Opportunities

• HUNGARY
• Presented by
• Kinga Svastics
• Commercial Specialist
• Budapest, Hungary

2
Hungary

• Facts and Figures (2006)
• Population 10 Million
• Area Size of Indiana
• GDP Growth Rate 3
• GDP per capita 11,000
• Average Wage 550/month
• Unemployment Rate 7.5
• Inflation Rate 3.9
• Industries Automotive, Machinery, Electronics,
  Chemicals
  

3
Healthcare Facts and Figures

• Decreasing and aging population
• Life expectancy one of the lowest in the EU
• HC system based on social solidarity
• One state-run Health Insurance Fund (HIF)
• Total HC spending 8 of GDP, i.e. 700/ per
  capita out of it 2/3 public by HIF
  
• 1/3 patient
  co-payment

4
Healthcare Financing

• Mandatory payroll contribution
• HC system dual financing i.e. HIF covers
  operational costs owner (municipalities,
  ministry) pays for capital investments like
  medical devices.
• Increasing gap between HC contribution HC
  expenditure Reform needed

5
Current HC Reform

• Law adopted in December 2006 on Reform
• Introduction of co-payment (visit fee, daily fee
  for hospital stay)
  
• Health Insurance Benefit Packages set
• - Basic for everybody (emergency, etc.)
• - For insured (set content, referral system, no
  free choice)
  
• - Supplementary package (private room, selected
  doctor)
  
• Shift from inpatient to primary and specialized
  outpatient care decrease of hospital beds,
  one-day surgery
  
• New categories leading/focus hospitals local
  hospitals
  

6
Medical Devices

• Market dominated by imports with 10 US market
  share
  
• Established distributors with after sales
  services
  
• CE marking required registration easy
• Out and in-patient clinics public, only one
  private hospital
  
• Reform and consolidation expected to increase
  medical technology investments(owners are
  municipality ministry)
  
• Best prospects in the area of cardiovascular
  equipment nuclear medicine/oncology diagnostic
  imaging, pediatry
  
• Purchasing used/refurbished equipment not
  common
  

7
Pharmaceuticals - Nutraceuticals

• Market dominated in 2/3 by import - 20 US market
  share
  
• 20 of total HC budget for prescription drug
  subsidies
  
• OTC drugs, dietary supplements and generics on
  the rise
  
• HC reform drug reimbursement system
  administered by NIF modified subsidies
  decreased, co-payment increased, the pharma
  industry contributes to overspending of the drug
  budget

8
Healthcare Services

• Increase of private service providers in the NIF
  (public) budget up to 20
  
• Major private segments
• - family doctors
• - pharmacies
• - dental services
• - ambulance
• - homecare
• - imaging diagnostic centers
• - subcontracting hospital labs, pathology, etc

9
Upcoming Opportunities Challenges

• Major pending issue of the current HC Reform one
  insurer remains or multi-insurer system
  introduced
  
• Expand managed care programs
• Attract more private capital
• EU funds 2007-2013 2 billion for human/medical
  sector