Espicom's in-depth medical device market reports are ideal for executives wanting to understand the key drivers in medical markets and have access to a wealth of statistical data. Each report opens with an outlook section that provides analysis of the market, 5-year market forecasts, national data projections, market outlook and key developments such as regulation, health facilities and government policy. The report also provides extensive background information, population trends, health status, health expenditure, organisation & administration, hospital services, medical personnel, healthcare development, market access information, trade data and essential industry contacts. Included with the report are 3 free quarterly updated outlook reports, enabling you to keep up to date with market developments for a year. Romania is the second-poorest member of the EU and has a crudely developed healthcare sector. Failure of previous governments to efficiently carry out reforms delayed Romania's entry to the EU, but this was achieved in January 2007, indicating that the country is finally shedding its Communist past. Romania has virtually no domestic medical equipment industry, and therefore has to import 90% of its requirements. For more sophisticated items, imports supply 100% of the market.
Lack of funding for healthcare means that potential demand for new equipment is huge. In the first half of the 1990s, the market tended to fluctuate due to the differing availability of funding, much of which is obtained through international credits. Since 1996, growth in the market has been much more stable, despite ongoing problems such as the halting of medical supplies to hospitals in May 2005, which resulted from over 200 million euros (US$234 million) of unpaid debts.
There are two ways to reach end users in Romania; direct selling to hospitals and through state tendering. To reach hospitals directly, the appointment of a good local distributor is essential. Emphasis needs to be placed on the marketing and promotion of products, since this is reportedly not an area in which local agents excel. The principal purchasing criterion for hospitals and other end users is price, although if an expensive product is needed, reputation is also an important consideration.
Expensive medical apparatus is usually bought by the Ministry of Health through a central procurement system, via a tendering process. Other tenders may be issued by international bodies, such as the WHO or PHARE. The Ministry has established a Committee of Technical and Medical Equipment, the function of which is to determine hospitals' equipment needs, and ensure that tenders submitted are acceptable. Regional health authorities and individual public hospitals are able to purchase small scale items directly, as their budget allows. Regional health authorities also usually put larger items of expenditure out to tender.
Budget constraints mean that purchasing second-hand equipment is often the only way for hospitals and physicians to update their facilities. Under a law passed in 1996, used equipment must be no older than eight years and must retain at least 50% of its residual value.
The private sector is relatively small, but represents some of the best sales opportunities. There is a large number of private physicians, who will buy small items directly, and a growing number of private outpatient clinics with the capacity to perform minor surgical procedures. The dental sector in particular is a major private sector growth area.