Medical Device Link.

MARKETPLACE

A changing landscape

Major progress on raising awareness of medical technologies among policy and decision makers in the health care market has been made in recent years. This includes comprehensive studies on the situation of medical technology in Germany, published by the Federal Ministries of Economics and Research.¹ Federal Health Minister Ulla Schmidt has also missed no opportunity to mention the innovative capacity of the German medical technology industry in her speeches in parliament. A “Medical Technology Action Plan,” ² which is to improve the promotion of the industry’s innovations, is part of the “High-Tech Strategy” adopted by the German federal government.

These initiatives and the budding strategic approach across governmental departments offer new opportunities for departing from a health policy perspective that is geared towards cost reduction.

More personal responsibility

What the industry needs now is a “Health Economy Master Plan” that is aligned across all policy areas and, above all, coordinated with the Government’s economy, research and health departments and the Federal Chancellery. As a precondition, this would require broad discussion by society at large on how much health is worth to us. People should be openly informed that the finite resources of Statutory Health Insurance cannot deliver an unending supply of innovative health care benefits.

In times of limited resources there is an even greater need for more individual responsibility for insuring personal health and for alternative funding concepts. This will allow medical progress to continue to be made available to all patients. The medical technology companies would like to actively participate in this process as a constructive and open-minded partner.

Industry profile

To support the value of the German medical technology industry, BVMed, the industry’s trade association, in co-operation with Spectaris (www.spectaris.de), has recently published new market figures.

Size. The sector employs approximately 90000 people in 1200 companies (with a workforce of more than 20 people per company). In addition, there are nearly 10000 related small businesses with approximately 75000 employees. The core sector thus employs a total of 165000 people in 11000 companies. Another 29000 people work in the retail trade for medical and orthopaedic goods and approximately 7000 health technicians service and maintain medical devices.

Production.The total sales of medical technology manufacturing companies in Germany rose by 8.1% to e5.9 billion in 2006. The domestic sales increased by 3.2 % to e5.7 billion and export sales by 11.1 % to e10.2 billion.

Spending. Health care spending on medical devices (without capital goods) amounted to more than e21 billion in Germany in 2005 (Source: Health Expenditure Statistics, Federal Statistical Office). Of this sum, spending on technical aids (such as handicapped aids, incontinence products, ostomy products, enteral feeding products, bandages and wheelchairs) was approximately e10.5 billion, and e9.5 billion was spent on other medical requirements. In addition, approximately e1 billion is spent on dressing materials, which are listed under the category of “pharmaceuticals.” The share of spending paid for by Statutory Health Insurance is approximately e14 billion.

Innovation capability

The German medical technology sector is a dynamic and highly innovative industry. With regard to patents and world trade share, Germany ranks second behind the United States. Approximately one third of the German sales revenue in this sector is generated by products that are less than three years old. On average, the innovative companies invest 9% of their revenues in research and development.