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ROMANIA COUNTRY COMMERCIAL GUIDE FY2002
MEDICAL EQUIPMENT MARKET

I. Statistical Information - Medical Equipment

Total Market Size USDm
1999: 161.1
2000: 338.2
2001: 264.1

Est. Avg. Annual Growth Rate of Market 1998-2000 (%) : 1.28

Imports USDm
1999: 146.5
2000: 307.5
2001: 240.1

Est. Avg. Annual Growth Rate (1998-2000) of total imports (%): 1,2

Imports from the U.S. USDm
1999: 36.62
2000: 54.93
2001: 87.88

Est. Avg. Annual Growth Rate (1997-1999) of imports from the US (%): 0.6


II. Ranked Evaluation of Sector - Medical Equipment and Infrastructure Development

Priority for Medical Equipment Sectors, 1 (low) to 5 (high):

Equipment sector Ranking
radiological equipment
5
diagnostic equipment for cardiology
5
transplant equipment
3
lab equipment
3
radiotherapy equipment
5


Country's Receptivity to U.S. equipment, services and alliances, 1 (low) to 5 (high):
Equipment sector Ranking
radiological equipment
4
diagnostic equipment for cardiology
4
transplant equipment
3
lab equipment
3
radiotherapy equipment
2


Competition for U.S. firms from local domestic suppliers, 1 (heavy) to 5 (little):
Equipment sector Ranking
radiological equipment
4
diagnostic equipment for cardiology
5
transplant equipment
4
lab equipment
5
radiotherapy equipment
4


Competition for U.S. firms from third-country suppliers, 1 (heavy) to 5 (little):
Equipment sector Ranking
radiological equipment
2
diagnostic equipment for cardiology
2
transplant equipment
2
lab equipment
2
radiotherapy equipment
1


Overall effect of trade/technical barriers on U.S. exports of equipment and services
1 (severe) to 5 (little):
Equipment sector Ranking
radiological equipment
3
diagnostic equipment for cardiology
3
transplant equipment
3
lab equipment
3
radiotherapy equipment
3



III. Narrative Information

The change in political regime in Romania in late 1989 triggered equally momentous changes in the economic and social environments. In the health sector the Government decided to change from centrally planned and centrally tax-based financing of health services to an insurance-based system for financing services more efficiently and more equitably. Almost all Central and Eastern Europe and Commonwealth of Independent States countries have changed – from a centrally planned Semashko model to a Bismarckian insurance-based system.

The Romanian health sector reform strategy is in line with the political decision to change from a centrally planned economy to a market based economy. A centrally planned health system is being replaced by a social insurance system financed by employee/employer contributions augmented by tax-based financing for non-paying population groups and for programs of national public health importance.

The success of Romania's health sector reform program requires the establishment of an organizational and management structure that has the clearly defined authority, managerial capacity, and supporting procedures and systems needed to implement massive changes nationwide. The scale of challenges that must be addressed is daunting. It is essential to focus managerial energies on the few critical issues that must be addressed in advancing the reform agenda, and postpone or eliminate those issues that are less critical or non-essential. Three issues should be given priority attention: make functional National Health Insurance law, redefining the role of the Ministry of Health; and integrating and decentralizing Health Service Delivery.

To be effective, management and service delivery changes need to be integrated with other reform efforts – such as new payment and contracting methods, performance incentives, education and training of the workforce, continuously improving the quality of care, and investments in buildings and equipment. To assure access to quality health services at a reasonable cost, the various reform programs need to be integrated at the point of patient access.

At present, private commercial health insurance is all but absent in Romania – the exception being the policies carried by expatriates and repatriated Romanians. Medicover-RomBel has begun to offer medical packages to major international employers, but coverage is still minimal. Several life insurance companies, such as Nederlanden, are laying the groundwork for health coverage, but do not expect to offer policies until an infrastructure of private health providers has been established. The private health sector can play a valuable role in helping Romania achieve its national health goals.
·
Medical reform cannot be implemented as long as the adopted laws are inappropriate and the purchased medical equipment is expensive and often outdated. It will be difficult to apply the reform as long as:
  • The buildings accommodating medical facilities are unsuitable and neglected due to the lack of funding;
  • The information system and networks ensuring the connection inside the hospitals and among them is not in place;
  • Bureaucracy makes it difficult for various medication and consumables to be obtained for certain combined treatments;
  • There are no real hospital managers; the hospitals are generally run by renowned physicians (who are not necessarily good managers)

In the years to come it is necessary to develop the medical equipment market for the private sector which will expand in certain medical fields.

Since in the future the health insurance houses will cover a certain share in the cost of the medical services, the medical equipment market for hospitals and medical facilities is expected to develop as funds get accumulated. The new acquisitions will be made in a decentralized way consistent with the amount of these funds. In this case it is likely that a more powerful "second hand" equipment market might develop (which so far has been very reduced, almost non existent at the level of the Romanian medical units).

It is worth underscoring that in the last years certain American companies, such as: General Electric, Picker, Hewlett Packard, Coherent, Space Lab had an important share in the development of the Romanian medical equipment market. In the international medical equipment fair, Rommedica, which is organized yearly, in March.. Many American companies with tradition in medical equipment manufacturing participate.

IV. Most promising subsectors (with estimated 2001 Total Market Size):

Equipment sector
Est. 2001 Market Size USDm
Hemodyalises
12
Cardiology equipment
21
Monitoring and intensive care equipment
50
Advanced diagnostic equipment
16
Clinical laboratory equipment
9
Disposable, surgical consumables
2



Major Procurement on the horizon (next 18-36 months)

MRI Scanners
Oncological treatment equipment
Disposable surgical consumables
Emergency cars and equipment



Country's Methods of Procurement
Hospitals, clinics and district health departments buy nonexpensive medical devices directly. For advanced diagnostic equipment, cardiology equipment, and clinical laboratory equipment the procurement is made by the Ministry of Health which has a tender and acquisition department.
When the Ministry of Health elaborates a strategy for national development in some medical direction, also makes central procurement.

Means of financing procurements
Central procurement is financed directly from the State budget and is guaranteed by the government of Romania (World Bank credit or supplier credits). Procurements of hospitals, clinics and district health departments are financed from state budget or from the local administrations own resources.

Points of contacts.

A) American Embassy
U.S. Department of Commerce
U.S. Foreign Commercial Service
Mr. William Crawford, Commercial Attache
Mrs. Doina Brancusi, Commercial Specialist
Str. Tudor Arghezi 7-9
Bucharest, Romania
Tel. (40-1) 210-40-42/345; Fax (40-1) 210-06-90

Ministry of Health
Medical Equipment Department
Ms. Dana Muresan, Director
Str. Ministerului 1-3, Bucharest, Romania
Tel/Fax (40-1) 323-81-24

Trade publications:

1. "Viata Medicala" (Medical Life)
Str. Ministerului 1-3, Sector 1
Bucharest, Romania
Tel. (40-1) 615-61-09
Fax (40-1) 615-69-80
Contact: Mihail Mihailide, Director

2. "Romania UP DATE" - Medical Division
Str. Popa Nan 70, Sector 2
Bucharest, Romania
Tel/Fax (401) 322-01-73
Contact: Dr. Mugur Valentin Geana, Editor

3. "Medicina Moderna"
Str. Garii de Nord 2, Sc. 2, Ap. 11, Et. 1, Sector 1
78123 Bucharest, Romania
Tel. (40-1) 637-74-14
Fax (40-1) 312-25-59
Contact: Lorin Vasilovici, Director General

Importers/ Distributors

1. Cordmedica
Mr. Radu Codreanu, Manager
Bdul. 1 Decembrie 1918, No. 31/2
4300 Tg. Mures, Romania
Tel/Fax (40-65) 16-43-65

2. DANSON
Mr. Marian Stroe, Director General
Blvd. Dacia 88, Sector 2
70256 Bucharest, Romania
Tel. (40-1) 619-29-63
Fax (40-1) 211-62-97

3. INTELMED
Mr. Titu Petrosanu, President
Str. Toamnei 38
Bucharest, Romania
Tel/Fax (40-1) 619-17-58

4. A&Z INT'l 2000 Srl
Mr. Sorin Stanescu, Director
Calea Giulesti 248
Bucharest, Romania
Tel. (40-1) 220-99-09, 220-90-57
Fax (40-1) 220-53-15

5. S&T Systems & Technologies
Mr. Ioan Valcu, MPG Account Manager
Blvd. Dimitrie Cantemir 1, Sector 4
Bucharest, Romania
Tel. (40-1) 323-72-50, 323-72-70
Fax (40-1) 323-72-00

6. Sokis Invest Srl
Mr. Carol Koszegi, Director General
Str. Polona 7, Sector 1
Bucharest, Romania
Tel/Fax (40-1) 211-75-57


In Romania, there are also other healthcare networks which belong to such central organizations as the Ministry of National Defense, the Ministry of the Interior, the Ministry of Transportation and the National Agency for Communications. The acquisition of medical equipment is made by methods similar to those used by the Ministry of Health (from supplier credits, and from direct budgets.).

Source: US Dept. of Commerce


Demographics & Economic Situation
Population age structure
Marriage age by region
Full demographic details
Key Economic Indicators

Source: Factbook.net

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