Medical Device Link.

Originally Published EMDM July/August 2003

Med-Tech Market Report

Decentralisation of Italy’s healthcare system has created a market of widely differing policies on budget management and cost containment. Restructuring the public hospital sector to improve efficiency and control costs is occurring at differing rates, with northern and central regions making the most progress.

While coping with a fragmented operating climate, medical technology manufacturers continue to be frustrated by lengthy payment delays. Legislation setting 90-day payment terms has failed to make an impact. The delays are threatening the viability of the many small players in the Italian market. More than 500 manufacturers and distributors employ more than 20,000 people in Italy, according to Eucomed.

Accounting for 11.2% of the European medical technology market with estimated sales of e6.2 billion, Italy is the third-largest market in Europe. Devolution of responsibility for healthcare provision to the 20 regions has contributed to differing levels of healthcare quality and investment. Funding is managed by around 240 local authorities (ASLs), which are responsible for purchasing healthcare services from providers.

Regional governments have embarked on an evaluation of public hospitals, which consume almost half of public funds, with a view to closing small hospitals and concentrating resources on large facilities. Hospitals are moving toward the creation of autonomous units with responsibility for their own budgets. Tighter controls on finances will have implications for suppliers of medical devices, especially as cost-containment measures are likely to see more-formal arrangements for technology assessment.

Copyright ©2004 European Medical Device Manufacturer