Medical Devices Opportunities

An Expert's View about Dental and Medical Equipment in the Netherlands

Last updated: 12 Apr 2011

The Netherlands has a well developed, comparatively mature medical device market, which is valued at €1.86 billion in 2010, equal to €112 per capita.

Sector Briefing Medical Devices Opportunities in the Netherlands Why the Netherlands? Mature and well developed market The Netherlands has a well developed, comparatively mature medical device market, which is valued at ?1.86 billion in 2010, equal to ?112 per capita. Various sources (Espicom) predict that the market will increase in size by 5.8% per annum over the course of the next six years. By 2015, the market is expected to reach a value of ?2.41 billion, equal to ?146 per capita. As a mature and high value medical device Find general information on the Dutch market market in Western Europe, there is tension conditions on UKTI?s website. The Doing between attempting to contain health costs Business Guide for The Netherlands gives an and a desire to remain at the forefront of overview of The Netherlands?s economy, technological innovation. Hospitals will need to business culture, potential opportunities and an invest in the provision of new medical introduction to other relevant issue equipment and technologies to maintain this high standard of care. UK Trade & Investment Sector briefing: Medical Device opportunities in the Netherlands 3. Supplementary Insurance Opportunities At this moment 90% of all Dutch inhabitants Highlights have some form of supplementary insurance, such as physiotherapy and dental help. ? The Netherlands spends an estimated 4% of total health expenditure on medical 4. Social Support Act (Wet equipment and supplies, 0.3% of total GDP. Maatschappelijke Ondersteuning/WMO) ? The Dutch market accounts for approximately 1.1% of global market. Since 2007 municipalities are responsible for ? The industry comprises between 150 and providing all kinds of social support for their 200 producers. inhabitants. The number of healthcare ? Increases in the migratory population, entitlements placed under the Social Support along with an increasing elderly population wi Act is ever growing, because many of them ll maintain demand for medical devices. ? The Netherlands acts as the have been transferred from the Exceptional gateway/trading post to Europe for the Medical Expenses Act to the Social Support Act. import and export of medical devices. Approximately 20% of imports are directly Health insurance companies re-exported. Since the Health Reform in 2006 the Dutch Health Insurance System government explicitly wants health insurance companies to play an important role in The economic downturn, which resulted in a reducing costs and increasing quality, although 4.0% contraction in the economy in 2009, has this can be seen as controversial as they are increased financial pressures on the health commercially orientated. At this moment service. The health insurance system is health insurance companies have no direct expected to have a deficit of around ?1.9 influence on used products during hospital billion in 2009 due to falling contributions at a treatments. In the future this may change, time of rising expenditure. The Dutch when insurance companies will gain more healthcare insurance market is covered by the shares in hospitals and private clinics. following insurance segments: There are four major health insurance 1. Health Insurance Act companies with different labels: (Zorgverzekeringswet/ZVW) Achmea / AGIS (4.7 million clients) In 2009 the total covered costs under the UVIT (4.2 million clients) Health Insurance Act were ?35 billion. The CZ Group / Delta Lloyd Group (3.3 million new health insurance act has substantially clients) increased price competition amongst insurers Menzis Group (2.1 million clients) and healthcare providers resulting in one of the most market-oriented healthcare systems in Reimbursement of hospital treatments Europe. The total costs for hospital treatments were 2. Exceptional Medical Expenses Act ?15.9 billion in 2006, ?16.6 billion in 2007 and (Algemene Wet Bijzondere ?17.7 billion in 2010. In the Netherlands Ziektekosten/AWBZ) hospital care is provided by general hospitals (general hospitals and outpatient The Exceptional Medical Expenses Act covers departments), university hospitals and all Dutch inhabitants against the costs of long independent private clinics and ?categorical term medical and nursing care (nursing homes, institutions. homes for mentally ill and disabled people). During the years the costs of the Exceptional General Hospitals Medical Expenses Act has risen sharply from ?20 billion in 2003, ?23 billion in 2006 and ?25 Most of the hospital treatments are offered by billion in 2010. general hospitals. In 2009 there were an estimated total of 82 public hospitals (139 locations, of which 60 outpatient departments). Some of the general hospitals have a license to UK Trade & Investment Sector briefing: Medical Device opportunities in the Netherlands offer so-called ?top-clinical? treatments, often Methods for purchasing medical more expensive (heart surgery, neurosurgery, technology transplantations and IVF). In the Netherlands, medical technology is University Hospitals relatively expensive, for example compared to Germany, from which much is imported. There are 8 university hospitals (UMC?s), which Purchasing departments and assortment play an important role in the development of coordinators increasingly look to purchase from new treatments and technologies. The European or global suppliers. Academic university hospitals offer the highest level of hospitals are financed by the government and specialist care (neurosurgery, cardiac surgery, have to open European tenders, when they a high-level emergency department etc) purchase for more than ?260.000. Non- academic hospitals are not obliged to open Independent Private Clinics tenders. Independent / private care centres are mainly Hospitals increasingly combine forces in located in the Randstad area (Amsterdam, (international) purchasing groups, or use the Utrecht, The Hague and Rotterdam). In total services of specialized companies and are in there are about 195 specialised clinics. At this some cases assisted by health insurance moment 1% of hospital care is provided by companies. private clinics. Major difference with the general hospitals is that specialised clinics Another development is the existence of E- often do not provide beds so that people can auctions for the purchasing of medical stay. technology and consumables. The Dutch umbrella organization of general hospitals Categorical Institutions (NVZ) has started an online platform for this. These centres offer treatment to specific Medical devices on the out-patient market groups of diseases and patients, e.g. for asthma, audiology, dialysis, epilepsy, The total costs for medical devices on the out- rehabilitation, and therapeutic radiology. In patient market were around ?1.1 billion in 2009 there were 98 categorical institutions 2006 and ?1.2 billion in 2007 as well as in organized in 60 organizations. 2008. Medical devices which are on the list of the Medical Devices Act (Regeling Hospital financing system Hulpmiddelen), which is part of the basic insurance, are reimbursed. It is only possible Since 2005 a system to classify hospital cases to get a medical device reimbursed through the has been introduced, called the Diagnosis Medical Devices Act, when it is mentioned for Treatment Combination (in Dutch, Diagnose long-term use. Behandeling Combinatie/DBC, similar to the Diagnosi The market for out-patient use of medical s Related Groups/DRG?s in the USA and UK devices in the Netherlands is changing. In . 2011 the Institute for Health Insurance, ?CVZ? Hosp (College voor Zorgverzkeringen), started with ital purchasing processes the project ?CLIQ?, during which products will be categorized anew. Main aim is for health In hospitals medical technology can be purchased insurance companies and health providers to by the purchasing department, multidisc have more choice in negotiating delivered iplinary purchase teams, healthcare professionals themselves, assortment product, quality and prices. coordinators, or management. The purchasing process (and the involved part Demand for efficiencies ies during the process) depends on the costs of the needed Healthcare services will need to become more technology and the way the product is used in efficient in order to cope with financial the hospital. Purchasing processes differ for each hospital, although there are some pressures and the needs of ageing populations. patterns in organisations. As part of this, there will be an increased demand for efficiencies, for example, medical devices that facilitate minimally invasive UK Trade & Investment Sector briefing: Medical Device opportunities in the Netherlands surgery, which can increase the number of If you have any questions on the opportunities operations performed in day surgery and above, contact the UKTI the Netherlands ensure a faster turnaround of patients. Despite Medical device contacts named in this report. recessionary pressures, market growth rates over the coming years will be positive. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. Increase of Screening These leads are sourced by our staff overseas in British Embassies, High Commissions and Over the past 5 years screening services (e.g. Consulates, across all sectors and in over 100 health checks and total body scans) and self- markets. test products (for diseases or disease risk factors) have increased. The expectation is You can be alerted to The Netherlands/medical that this trend will continue to increase, as device opportunities on a regular basis by scientific and technological developments make registering on the UKTI website. More on it possible to service the latent demand. UKTI?s business opportunities service SWOT Analysis Major events and activities Strengths ? Well developed healthcare system Het Instrument, www.hetinstrument.nl, 25- ? Well developed trading centre 28 September 2012, Amsterdam, the ? Increased government expenditure on Netherlands, lab instrumentation. healthcare Rehacare, www.rehacare.de, 21-24 Weaknesses September 2011, Düsseldorf, Germany, ? European working time directive for doctors rehabilitation & assistive technologies (TAP, ? Fluctuations in trade values not always reflect Medilink York & Humberside organises UKTI market trends pavilion). Opportunities Medica, www.medica.de, 16-19 November ? Increased spending per household 2011, Düsseldorf, Germany, medical ? Emphasis placed on hospitals to improve equipment (TAP), Medica is the largest medical efficiency equipment show in Europe. ? Enlargement of EU ? Health insurance reforms Zorgtotaal, www.zorgtotaal.nl, 16-18 March 2011, Utrecht, the Netherlands, medical Threats equipment. ? Large degree of bureaucracy ? Low rate of growth in the economy Support, www.supportexpo.nl, 2012, Utrecht, the Netherlands, rehabilitation. General trends Find full details of all The Netherlands medical ? Buyer power: moderate device events on the UKTI website. New export ? Customers include: hospitals, medical events are added daily to the site and you can centres and wholesale distributors register to be alerted to them on a daily, ? Brand identity less important to buyers weekly or monthly basis than product quality and prices ? Customers utilize group purchasing to UKTI?s Tradeshow Access Programme (TAP) negotiate better prices, enhancing buyer provides grant support for eligible Small & power Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about In general, the medical device industry in The UKTI support for attendance at overseas Netherlands offers some of the most exciting events and realistic opportunities for cooperation with suitable UK companies and organisations. UK Trade & Investment Sector briefing: Medical Device opportunities in the Netherlands UKTI contacts Fran Edmonds Senior Trade Adviser British Embassy, the Netherlands Tel: (0031 70) 4270 306 Email: fran.edmonds@fco.gov.uk Web: www.ukti.gov.uk Next steps ? How UKTI can help British companies wishing to develop their business in the Dutch market are advised to undertake as much market research and planning as possible in the UK. UKTI?s team in The Netherlands, with its wide local knowledge and experience, can provide a range of services to British-based companies wishing to grow their business in the Dutch market. This can include: ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential customers in the Dutch market ? Establishment of interest of such contacts in working with you ? Arranging appointments ? Organise seminars or other events for you to meet contacts and promote your company in the Dutch market This work is available via our Overseas Market Introduction Service (OMIS) a chargeable service which assists British-based companies wishing to enter or expand their business in overseas markets. To find out more about commissioning this work, or accessing other UKTI services and specialist advice, please visit the UKTI website to find contact details for your local UKTI office. Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Medical Device opportunities in the Netherlands
Posted: 12 April 2011, last updated 12 April 2011

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