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Healthcare equipment market
A short review
10 years later
• 2005, I came back 10 years after I left Turkey
• 1995– Large public market – small private
– Focus on: Military, Universities and large MOH
– Government guarantees
– High inflation and currency dynamics
– Most if not all business in NLG or USD, LC based
10 years later
• 2005– Less focus on a relatively smaller public market
– Fast growing private market: universities, hospital chains, clinics
– Intro of “Income Sharing“ models at public hospitals
– Limited or no government guarantees
– Reduced inflation and rather stable currency
– More and more business in TL
Recently
• 2009/2010– Strong focus on public healthcare for all (SSK incorporated in MOH)– Reimbursement reductions, changes in the labor law, hospital and
equipment permits and licenses, regulatory actions– First signs of PPP (public private partnerships)– New regulations – future private market uncertain - strong reduction of
the public market – many institutions in trouble– Foreign investments in some of the bigger hospital chains– Increased cross border business– Income Sharing reaching saturation– Reduced inflation and rather stable currency– Majority of the business in TL
At present
• 2011– Growing public market via central bulk purchasing, new framework tenders,
local tenders and PPP (…. elections in June)– Largest PPP funnel world-wide (28 projects)– Improved private market – foreign investors and financing are successful –
investments and projects started again– A further reduction in the reimbursement rates, permits and licenses continue
– Income Sharing projects in trouble)– Increased cross border business – ME, Russia, CEE and Africa – largely via
construction companies– Stable single digit inflation and stable currency (although lost 6% in the first 5
month)– Majority of the business in TL
Highly diverse market place
13
A granular approach
Brand image
Hi-end / SophisticatedSpecifications
Low-end & economical solutionsPrice focused
Local insightSegmentation
14
Specific market requirements
Local insight
Product specifications Price setting
LogisticsVisibility
Brand image
Healthcare equipment market
Public Market segment:
• 1000 MOH hospitals• 60 Medical Universities• 50 MOD hospitals• Numerous clinics (low perception)
• Healthcare for all policy• Some health Tourism • Limited private insurance
• Largest PPP funnel in the world
Private market:
• 400 + hospitals (no new licenses)• 20 Medical Universities• PFI’s (income sharing) • Numerous clinics (struggling)
• Minimum reimbursement rates • Limited private customers• Dominating hospital chains• Cross border activities
• Foreign investments
GDP Healthcare expenditure 15% compared to European countries (OECD)
Great growth potential
High volumes
Very competitive
Solid base for the region
Questions to answer:
How would you:
• Define your market
• Find your potential growth segments
• Define your enablers for each segment
• Involve local insight
• Balance short term versus long term objectives