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Executive Summary
The healthcare sector is very active and prominent in the Czech Republic. Czech healthcare system reform has been one of the most important political topics. The system is predominantly financed by the public sector through mandatory insurance.
In 2017, most expenditures were covered by mandatory healthcare insurance and other public sources. Private expenditure accounted for 14% of the total expenditure. The Czech Republic spent 7.68% of its GDP on healthcare in 2017. The health system is heavily regulated.
Although the government is examining ways to reduce healthcare expenses, including joint purchases of medical consumables and pharmaceuticals by state-owned hospitals and adopting e-tenders, the Czech Republic offers strong opportunities for medical device companies. Expected growth in the sector over the next couple of years is around 5%.
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Market Entry
The recommended strategy for a company from the United States (U.S.) interested in the Czech market is to find a local partner/representative or open an office in the country. It is difficult to succeed in the market without a local representative that can support everyday contact with customers and government representatives. Service availability is also important for Czech clients.
Additionally, although products may be manufactured in accordance with international standards, it may still be necessary to localize them for use in the Czech Republic.
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Current Market Trends
By international standards, Czech healthcare services are excellent in terms of quality and availability of treatment. However, the increasing cost of healthcare is one of the main issues facing the Czech Republic. Longer life expectancy and unhealthy lifestyles (obesity and heart disease) are on the rise.
Devices used to monitor symptoms and manage disease are in growing demand. The most common cause of death is circulatory system diseases (heart disease, stroke, etc.). Czechs continue to be heavy smokers and the air in many industrial cities is somewhat polluted. Growing interest in joint Czech-U.S. projects in the healthcare field could generate new opportunities for U.S. medical equipment providers.
Technological innovations and its introduction are among the key issues for the Czech healthcare sector. eHealth and telemedicine have been much-discussed topics in the Czech Republic. The Czech Ministry of Health introduced a National Concept for eHealth for 2014 - 2020 which should help to establish a politically acceptable program for the national introduction of eHealth in the future. The introduction of eHealth faces challenges, including the low motivation of market constituents (e.g., doctors, patients, state institutions, etc.), limited legislation in this area and a lack of financing. The Czech government is looking into the possibility of obtaining European Union (EU) funds to help introduce eHealth in the country.
The Czech Republic is a popular destination for medical tourism. It is known for reasonably priced quality treatment. Aesthetic medicine procedures, IVD treatment, obesity treatment, and gynecological procedures are in the highest demand.
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Market Size
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Healthcare spending (including investment)
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… as percent of GDP
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7.68%
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… of which spent on inpatient services (including long-term care)
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29.5%
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… of which spent on pharmaceuticals/consumables
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21% / N/A
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… of which spent on outpatient services
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30.5%
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Hospitals, Procedures, Healthcare Professionals UN:
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Number of hospitals
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187
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…Public
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82.4% (Includes government, region and city/municipality owned)
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…Private
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17.6%
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Number of hospital beds
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… available beds
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77,937
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…of which in general hospitals
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56,960
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…of which in specialized clinics and rehabilitation centers
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20,977
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Number of surgical procedures
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6,262 per 100,000 inhabitants
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…of which Cataract Surgery
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1,001.6 per 100,000 inhabitants
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…of which Caesarean section
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254 per 1,000 live birth
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Physicians
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Estimated total 38,776
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…of which surgeons
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9,397
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…of which internists
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1,296
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…of which pediatricians
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7,371
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Dentists
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7,577
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Demographics
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Population
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10.65 million
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Life expectancy men/women
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76.3 years / 82 years
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Infant mortality
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2.8 deaths/1.000 live births
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Percent of population older than 65
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19.2%
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…projection, 2030
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25%
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Annual deaths
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11.3 deaths/1,000 population
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…caused by circulatory system problems (heart disease, stroke etc.)
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615.2/100,000 adults
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…caused by cancer/neoplastic disease
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284.6 deaths/ 100,000 adults
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Main Competitors
The Czech Republic has a small but skilled medical device manufacturing sector. Local producers focus on exports. Although domestic manufacturers are increasingly competitive, most medical devices used in the Czech Republic are imported. Around 80% of the medical device market is supplied by imports, mainly from other EU countries and the U.S. Germany and the U.S. are the leading suppliers, accounting for almost 50% of all imports.
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Current Demand
The best market opportunities are for cutting-edge, high-quality sophisticated medical equipment, especially equipment that increases efficiency and reduces lengths of hospital stays.
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Registration Process
The Czech Republic requires the CE mark for most medical devices (except custom-made devices) sold in the market. On April 1, 2015, new legislation on medical devices came into effect. The past obligation to notify the Ministry of Health when introducing a new product to the market has been replaced a requirement to notify the State Institute for Drug Control (SUKL).
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Reimbursement
The Czech Republic is a highly developed, open market with liberal policies and intense competition. One of the challenges manufacturers and importers of medical devices and pharmaceuticals will face is getting their product on the reimbursement scheme that is covered by the insurance companies. This can, in some cases, be a time-consuming process. There are seven health insurance companies in the Czech Republic, with General Insurance Company (Vseobecna zdravotni pojistovna, VZP) being the largest insurer.
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Barriers
There are no major barriers to trade for medical devices. Products from non-EU countries are subject to import duties. Customs duty rates are updated annually and are harmonized within EU countries. The import duty for a medical device depends on the specific product and matching HS code. Medical devices and pharmaceuticals are also subject to a value-added tax (VAT).
The Czech Republic operates on a 50 hertz cycle; power supply is 230V (single phase) and 400V (triple phase). More than half of Czech company representatives can communicate in English or in German.
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FAQs
1. How can I connect to Czech importers/distributors?
Czech companies often travel to the Medica trade fair in Dusseldorf, Germany, which provides good opportunities for face-to-face meetings. Alternatively, U.S. companies can use USCS partner search services.
2. Do Czech distributors/importers cover some other countries as well?
Since the Czech Republic and Slovakia used to be a single country before 1993, many Czech companies still have offices there and often cover both countries. In some individual cases, other markets like Austria or Poland are also covered, but it is not as common.
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U.S. Commercial Service Contact Information
Name: Veronika Novakova
Position: Commercial Specialist
Email: veronika.novakova@trade.gov
Phone: +420 257 022 437
