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The Outlook for Medical Devices in Western Europe
Date:7/31/2012

p>total was 11.8% lower in 2009 than in 2008. There was a period of huge growth in public health spending under the Labour government after 2001, which saw the NHS budget almost triple. In 2008, total health expenditure was estimated at £140.3 billion (US$227.1 billion). Of this, £118 billion is public, equal to around 84.0% of the total. Expenditure is set to slow in the wake of the 2009 recession and enormous government deficit, however. The newlyelected (May 2010) Conservative/Liberal-Democrat coalition government has pledged to maintain some sort of growth in recurrent health spending, although this may prove difficult. The latest published government plans involve a 9% cut in capital health spending in 2011.

FRANCEFrance ranks among the top five largest medical device markets in the world. France spends 2.9% of total health expenditure on medical equipment and supplies and 0.3% of GDP, which is average for a West European country. Whilst the overall market is generally well developed, there are sectors which remain underdeveloped, particularly for the more innovative forms of technology, despite efforts to reform the hospital planning process and increase investment. Whilst the public sector is the largest purchaser of most diagnostic and therapeutic equipment, the private sector is the dominant purchaser of surgical equipment and supplies. The continuing deficit of the national health insurance funds has prompted new measures to control spending on medical devices, similar to those already in force for pharmaceuticals. A target of 2.9% growth in health insurance spending has been set for 2011. To meet this target, efficiency savings of 2.4 billion euros need to be found with healthcare products required to contribute 500 millioneuros. Specific measures include lowering the reimbursement rate for medical devices reimbursed at 65% to 60% with the aim of saving 100 million euros. The medical market is only likely to see moderate growth, rising fr
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