Industry Trend Analysis - Healthcare Market Growth Driven By Private Sector - APR 2018

BMI View: Romania's public healthcare system continues to underperform due to a lack of funding and inefficient use of funds. Despite cost-containment measures, healthcare expenditure growth will remain on a strong footing, albeit from a relatively low base. This will be driven by the rapid expansion of private healthcare.

Chronic underfunding within Romania's public healthcare system continues to undermine access to care, posing risks to multinational pharmaceutical firms' revenue growth prospects. In the Health Consumer Powerhouse Euro Health Consumer Index (ECHI) 2017 report, published in late January 2018, Romania was once again ranked as the worst of the 34 countries listed, just as it was in the 2016 report.

Echoing the issues highlighted in the previous report, the 2017 report noted that the country's antiquated healthcare structure continues to create inefficiencies in healthcare expenditure, with a high and costly ratio of in-patient care to out-patient care. As a result of the outdated and poorly-managed public healthcare system, the country is ranked as having the worst 'bang-for-the-buck', essentially a metric of analysing the expenditure on healthcare using a purchasing power parity-adjusted method. The report highlights that, alongside Albania and Bulgaria, Romania's healthcare system requires restructuring.

Romania: Worst Performing Country
ECHI 2017 Total Score
Note: Maximum Possible Score = 1000; Minimum Score = 333. Source: Health Consumer Powerhouse ECHI 2017, BMI

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