Executive Summary
Market Entry
Current Market Trends
Main Competitors
Market Size
Current Demand
Registration Process
Healthcare Service Sources of Revenue
Barriers
Procurement & Tenders
Government Links
FAQs
U.S. Commercial Service Contact Information
Tab Options
Executive Summary
Market Entry
Current Market Trends
Main Competitors
Market Size
Current Demand
Registration Process
Healthcare Service Sources of Revenue
Barriers
Procurement & Tenders
Government Links
FAQs
U.S. Commercial Service Contact Information
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Executive Summary
Georgia is an emerging market with high growth potential in the healthcare industry. Over the past decade, spending on healthcare has increased more than twofold to $1.2 billion USD, or almost seven percent of Georgia’s GDP. Georgia has a high level of privatization, with 86 percent of its hospitals privately owned and operated. Georgia provides Universal Healthcare Coverage to most of its citizens, and this coverage has expanded over the last decade to include most emergency, outpatient, and inpatient care. The Universal Healthcare level of coverage is need-based and still requires out-of-pocket expenditures. In addition to healthcare coverage, the government pays for drugs needed to treat common chronic conditions for those who are socially vulnerable.
Georgia has a relatively high level of healthcare, but it is unevenly distributed, with rural areas receiving a lower quality of care. Additionally, healthcare services are often inefficient, with a low utilization of preventative and primary care. The government aims to encourage healthcare efficiency through changes to the Universal Healthcare System and strengthening the primary health care system. Georgia has an abundance of trained doctors but a shortage of nurses, which contributes to inefficiencies.
Several modern hospitals and pharmaceutical manufacturers are interested in buying the latest, most modern medical equipment, with the aim to become more competitive regionally and serve as destination for regional medical tourism.
Pandemic Effects
The COVID-19 pandemic highlighted the need for further investment in primary healthcare services. Traditionally underutilized, primary care was part of the first response to identifying and treating the virus. Georgia has a robust COVID-19 testing regime with data publicly available.
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Market Entry
Georgia has favorable conditions for doing business in the healthcare sector with no significant limitations on the import of U.S. medical supplies and devices. The Georgian Customs Department requires shipping documentation with a thorough description of the product. Medical devices and pharmaceuticals are free from customs duty taxes and exempt from value-added tax.
For medical supplies and products, it is recommended to work with a local distributor to gain access to the Georgian market.
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Current Market Trends
As an emerging market, Georgia’s healthcare has expanded significantly in the past decade with this trend expected to continue. Since 2013, almost 150 healthcare facilities have entered the market. Private, for-profit companies operate 86 percent of Georgia’s hospitals, a larger share than most developed and emerging market countries. The government provides Universal Healthcare to Georgian citizens and is implementing measures to encourage hospitals to become more efficient in treating patients.
From 2010 to 2019, spending on healthcare more than doubled, reaching $1.2 billion USD, about seven percent of Georgia’s GDP. Georgian households spend 10.8 percent of their income on healthcare, compared to 3.9 percent in the EU.
Preventative and primary care has been a priority of the government but generally remains underutilized in Georgia. The supply of outpatient services has expanded over the last decade, with moderate increases in outpatient visits. Outpatient visit rates remain lower than in neighboring countries and are roughly half of those in the EU. In the capital of Tbilisi, outpatient rates are adequate, while those in rural areas do not utilize primary outpatient care.
Georgia has an uneven distribution of healthcare staff, with a growing number of doctors but a lack of nurses. The lack of nurses contributes to lower doctor productivity compared to neighboring and EU countries.
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Main U.S. Competitors in Georgian Healthcare Market
Georgia imports Turkish generic pharmaceuticals that are favorable in price and quality. European, Turkish, and Israeli medical products are also imported.
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Market Size
Healthcare spending (including investment)
… as percent of GDP
6.66%
Hospitals, Procedures, Healthcare Professionals UN:
Number of hospital beds
18,580
In-patient facilities
265
Out-patient facilities
2,283
Ambulance stations
78
Blood transfusion facilities
20
Physicians (including dentists)
25,429
Number of Nurses
22,126
Rural physician-entrepreneurs
1,265
Encounters with physicians
12,807,695
Demographics
Population
3,720,200
Life expectancy men/women
69.1/77.7
Infant mortality
7.78
Percent of population older than 65
15.5
Annual deaths
13.6/1000 people
Source: Georgia’s National Center for Disease Control
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Current Demand
Increased government spending has helped to drive the demand for healthcare services in Georgia. Since 2010, the government of Georgia has tripled the amount spent on public health, allowing the population to seek additional services with reduced out-of-pocket expenditures. Private health insurance and spending also continues to increase, with over 16 percent of the population having private coverage.
Several Tbilisi hospitals have been actively acquiring the latest medical equipment and technology, with the goal to be competitive regionally. Hospitals aim to keep Georgians from seeking treatment in neighboring Turkey and to attract medical tourists from the Caucasus and Central Asia.
A rising prevalence of age-associated diseases has also contributed to increased demand for health services.
Public sector healthcare facilities, especially those outside urban areas, lack up-to-date medical devices, resulting in a demand for second-hand medical equipment.
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Registration Process
Pharmaceuticals
Georgia’s State Regulation Agency of Medical Authorities under the Ministry of Labor, Health, and Social Affairs is the primary regulatory body of pharmaceuticals. Pharmaceutical products must be registered with the Agency to be sold on the Georgian market. The Agency has a fast-track registration for pharmaceuticals approved by the FDA in United States and other countries with competent authorities and high regulatory requirements. The term of registration cannot exceed five years.
Medical Devices and Products
Georgia does not require registration of most medical devices or products. Dental materials and diagnostic test systems, like pharmaceuticals, require registration.
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Healthcare Service Sources of Revenue
Healthcare service providers (both public and private) generate revenue from out-of-pocket payments by patients (including fee-for-service and Universal Healthcare co-payments), transfers from state-sponsored healthcare programs, and payments from private medical insurance companies. Out-of-pocket expenditures on healthcare in Georgia exceed public financing and private insurance payments. Although the government is the primary source of financing for hospital services in Georgia, the total government expenditure on health is low, at 0.3% of Gross Domestic Product (GDP). Further, the prices charged to patients are not regulated by the state. Similarly, the amount of reimbursement paid by the Social Service Agency (SSA) to healthcare providers under Universal Healthcare differs depending on the type of service provided, and the location of the facility. For example, in some cases, reimbursement rates are higher in Tbilisi than in other regions for the same services.
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Barriers
There are no significant barriers to or limitations on imports of U.S. goods. To import medical supplies and devices, customs only requires shipping documentation with a thorough description of the product. Medical devices and pharmaceuticals are free from customs duty taxes and exempt from value added tax, as specified in the above sections.
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Procurement & Tenders
Procurement and tender announcements from Georgia, including government tenders, domestic tenders, global tenders, tender notices, procurement news, project information, business opportunities, international competitive bids, requests for proposal, and expressions of interest, can be found at the following website: http://www.globaltenders.com/government-tenders-georgia.php
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Government Links:
Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs of Georgia: http://www.moh.gov.ge
Drug Regulation Authority of Georgia: http://ehealth.moh.gov.ge/Hmis/Portal/Default.aspx
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FAQs for Registration of Drugs and Medical Devices in Georgia
Q. – Are there special prohibitions or import regulations covering the importation of U.S.-made medical equipment?
A. – The importation of any kind of medical equipment to Georgia is free from regulation and does not need registration or permissions of any kind. Pharmaceuticals require registration.
Q. – What laws and restrictions regulate the importation of U.S.-made vitamins and food supplements into Georgia?
A. – Georgian pharmaceutical regulators differentiate vitamins based on the dosage of the active ingredient. Vitamins with lower concentrations are considered to be biologically active supplements or nutrition supplements. The importer decides whether to register the vitamins and there are no special rules for importation. Vitamins with high concentrations of an active ingredient(s) are considered to have a therapeutic effect and therefore qualify as drugs. In this case, importers must follow all standard rules for drug registration and importation.
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U.S. Commercial Service Contact Information
Name: Jean Foster Economic Officer fosterjm5@state.gov
