The Lithuanian health system is a mixed system, predominantly funded from the National Health Insurance Fund (NHIF) through a compulsory health insurance scheme and supplemented by state contributions on behalf of the economically inactive population. Public financing of the health sector has gradually increased since 2004 to 5.9% of GDP in 2025. The state healthcare system is intended to serve the entire population, and the Health Insurance Law requires all permanent residents and legally employed non-permanent residents to participate in the compulsory health insurance scheme (typically paying 6–9% of taxable income), without an option to opt-out.
The Ministry of Health is responsible for implementing health system regulation through setting standards and requirements, licensing health-care providers and professionals, and approving capital investments. In the 1990s, many health administration functions were decentralized from the Ministry of Health to regional authorities. Sixty municipalities – varying in size from under 5, 000 to over 500,000 residents – became responsible for managing primary and social care, and for public health activities at the local level. They also own the majority of outpatient clinics and small-to-medium sized hospitals.
The private sector plays a limited role in inpatient care, but plays a substantial role in dental care, cosmetic surgery, psychological therapy, some outpatient specialties, and primary care. Since 2008, the NHIF has increased its contracts with private providers for outpatient care.
Additionally, development of the life sciences sector in Lithuania is a priority for the government. In 2018, Lithuania’s government set a target for the sector to contribute 5% of the country’s GDP by 2030. In 2022, it accounted for approximately 2.7% of Lithuania’s GDP - one of the highest rates in the EU. The life sciences industry in Lithuania is one of the fastest growing in the EU, with some reports citing an annual growth rate of 25%. The biotech sector alone saw a 900% increase in revenue over the last decade. As a result, there are a number of innovative companies producing medical equipment, including U.S. private sector investors. Lithuania‘s Innovation Agency and Invest Lithuania Agency routinely organize trade shows that draw international participation focused on life sciences.
Opportunities
The best prospects for U.S. suppliers are in modern diagnostic equipment, patient-monitoring systems, high-tech surgical devices, oncology medicines, radiation treatment equipment, cardiovascular surgical devices, and nursing equipment and supplies.