The report helps businesses gain a unique insight into the socio-economic dynamics, and helps analyze how they affect healthcare systems and their evolution. It can serve as a valuable tool with actionable guidance for sales, marketing, R&D and business managers with industry related interests.
Four chapters cover the numerical and written analysis for the following topics: Economic Outlook (38 Key industry indicators), The Healthcare System (HC system structures), Reforms (restructuring, re-engineering or austerity efforts) and the Healthcare Market (Capital Equipment, Medical Devices, Disposables and Pharmaceuticals).
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- In 2017, the overall performance of Turkey’s economy was lower than that of previous years; GDP was lesser than previous years, GDP/capita was close to €1,000 less compared to 2016, healthcare spending as a percentage and per capita decreased, whilst the government budget imbalance and unemployment increased.
- Inflation has been quite steep in Turkey over the past ten years, particularly in 2017 where it peaked at 10.1%. Currency depreciation has aggravated the high inflation rate.
- Government spending cuts are to be expected, to reduce the deficits in the current and fiscal accounts. These were accrued due to the government’s external borrowing and overspending, which outweighed the revenue it generated in the same period.
- In light of its political turbulence, Turkey’s economic landscape has felt losses of confidence domestically as well as externally (decreasing the influx of foreign investments and business opportunities), which it must address in order to remain a strong and desirable trading and business partner.
The Healthcare System
- The Health Transformation Program (2003-2013) sought to address structural deficiencies in Turkey’s healthcare landscape; improving access to healthcare and the quality of care delivery, enhancing the social security design to cover the vast majority of the population, and strongly expanding the access to and use of primary care.
- The government shows a consistent commitment to upgrade the healthcare infrastructure and to improve the healthcare industry. Turkey actively pursues growing healthcare investments, including foreign initiatives. Market regulations are increasingly coming in line with EU-standards.
- The Social Security Institution (SSI), financed through payments by employers, employees and government contributions (in case of budget deficits), has become the single purchaser for healthcare services.
- From 2016-2017, Turkish healthcare (HC) expenditures were €27.6 bn, equal to 3.9% of the GDP. This is one of the lowest expenditures on healthcare services and organization in the Eurozone and of any developed country worldwide. HC spending per capita has been declining gradually in the last years, from €408/capita in 2012 to €338/capita in 2018.
- There are 1,241 acute care hospitals in Turkey, with bed capacity across various sectors; 66% of the beds are in public hospitals.
- In Turkey, there is a definitive trend of public-private cooperation, and both public and private sector healthcare is growing steadily; around 300 new private facilities have opened in Turkey in the last two decades, and 50 new public facilities have been made available.
- General healthcare market reforms and new systemic approaches
- New medtech and pharma market regulations
- Ongoing efforts in government policy making
- With a combined market value (i.e. medical devices and pharmaceuticals) of €9.5 bn, Turkey is one of the largest healthcare markets in its region. It has varying growth estimates for the different product types, ranging from a modest 2.5% to up to 9% in the next 3 years.
- Increased demand for healthcare, wider access to hospital care and improved medical insurance coverage will fuel market growth. The creation of specialty centers (i.e. oncology, cardiovascular, ophthalmology) will generate an attractive segment for specialized equipment and devices.
- Medical tourism is on the rise, with a market value of €630 m and growth rate of 15%.
- A current hospital building program is expected to provide up to 45,000 additional beds within the next couple of years. A plethora of equipment is needed from basic office furniture to high-end diagnostic imaging devices to complete their infrastructure.
- Over 80% of medical supplies are imported. The largest volumes consist of disposable items and orthopedic products. Turkey accepts EU medical device directives’ (MDD) validated medtech.
- Turkey implements “forced localization” policies, to boost domestic output. Turkey’s designs for it capital equipment industry – as with its pharma industry – has the goal of enhancing domestic production and technical knowhow.
- Medtech reimbursement rates have remained relatively stable, yet considering Turkey’s high inflation rate and currency volatility, the result for external foreign firms is that they get less value for their products. There have also been some cases of unsustainable financial struggles in both public and private hospitals.
Includes tables centralizing all relevant data on socio-demographics, macroeconomics and national Healthcare.
National Care Provision data:
Provides an overview of the Healthcare demographics: Nation Care provision data, Intensive Care units, Operating rooms, Emergency Rooms, Hospital services, Healthcare professionals.
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