Romanian private medical services market to double in value by 2015

2010-09-08

Over the next five years the Romanian private medical services market is expected to grow on average by 20-25% per annum and to double in value between now and 2015, according to Daily Business. Based on its results in H1 2010 and the expectations of key players this year, the market will expand by 25% to €500m.
The growth of the business of private clinics and hospitals in the country coincides with the degradation of the Romanian public healthcare system, which is near to collapse because of the lack of financing, the emigration of doctors and poor management. During the last 20 years there were no new public hospitals built in the country, and existing facilities have not been repaired and upgraded for many years despite the €4-5bn allocated to public healthcare every year.
Experts believe that private clinics will continue to take patients from public healthcare, but the high prices prevent private medicine from being affordable for every Romanian patient. The average price of €100 per day in a private hospital remains prohibitive, given the economic conditions in the country.




According to PMR forecasts, presented in the report Private healthcare market in Romania 2010 the CAGR (compound annual growth rate of this market) will reach some 18% in the years 2010-2012. The healthy growth of more than 30% per year stopped in 2009, when the private healthcare market in Romania grew by only 15%, to €373m, according to our estimates. We expect the Romanian market to return to very rapid growth (of 25% or more annually) in the year 2012 and thereafter, as the market is still small and thus not saturated, and we expect more and more moves to encourage private investment.


Monika Stefanczyk
Head Pharmaceutical Market Analyst
PMR Publications