Healthcare priorities in Russia
Public healthcare is one of the main priorities of the Russian Government, and since 2006 spending has increased by more than 300%.
In 2010, life expectancy for men had increased from 59 years old in the first part of the 21st century, to 61.8 years old. Although increasing, this is well below male life expectancy for men in Western Europe and the life expectancy for Russian woman, at 74 years old.
The main reason for these low rates is that these men were born in, or just before, the second world war and suffered with deprivation, and female babies are far more resistant to this. Further reasons include, high rates of cigarette smoking, alcoholism, stress caused by the end of communism and a poor culture of health and safety, at work and on the roads.
Russia cannot afford to lose large numbers of men of working age, so the government is prioritising the treatment of cardiovascular disease, lung cancer, liver disease, Type 2 diabetes, accident trauma, and the provision of first aid.
On another note, Russia has built many new maternity hospitals to cope with a substantial baby boom. There has been a dramatic fall in abortions over the last 10 years.
In 2010, life expectancy for men had increased from 59 years old in the first part of the 21st century, to 61.8 years old. Although increasing, this is well below male life expectancy for men in Western Europe and the life expectancy for Russian woman, at 74 years old.
The main reason for these low rates is that these men were born in, or just before, the second world war and suffered with deprivation, and female babies are far more resistant to this. Further reasons include, high rates of cigarette smoking, alcoholism, stress caused by the end of communism and a poor culture of health and safety, at work and on the roads.
Russia cannot afford to lose large numbers of men of working age, so the government is prioritising the treatment of cardiovascular disease, lung cancer, liver disease, Type 2 diabetes, accident trauma, and the provision of first aid.
On another note, Russia has built many new maternity hospitals to cope with a substantial baby boom. There has been a dramatic fall in abortions over the last 10 years.
Healthcare funding in Russia
The Russian healthcare system is government funded and all citizens receive free healthcare. But there is also a private sector, for those able and willing to pay.
Operationally, the system is administered by the provincial governments with a Provider-Purchaser model. There are six sources of funding for medical services in Russia: the Russian Federal Government, the various provincial governments, the county councils (Raiioni), employers, medical insurance companies and payments by individuals. Medical insurance companies, run by the provincial governments, are the main funders of non capital spending.
There is also the Federal Ministry for Emergency Situations, and they fund medical devices for the emergency services. Emergency services equipment and training offers many opportunities to those looking to import and invest.
The armed services and prisons, run their own hospital systems with a low-level of technology.
Operationally, the system is administered by the provincial governments with a Provider-Purchaser model. There are six sources of funding for medical services in Russia: the Russian Federal Government, the various provincial governments, the county councils (Raiioni), employers, medical insurance companies and payments by individuals. Medical insurance companies, run by the provincial governments, are the main funders of non capital spending.
There is also the Federal Ministry for Emergency Situations, and they fund medical devices for the emergency services. Emergency services equipment and training offers many opportunities to those looking to import and invest.
The armed services and prisons, run their own hospital systems with a low-level of technology.
Delivery of medical services in Russia
Hospitals
Treatment is offered in hospitals and polyclinics, and Russians traditionally attend polyclinics rather than general practitioner surgeries. The refurbishment and re-equipment of exiting hospitals and polyclinics is being treated as a priority in government spending.
PolyclinicsA polyclinic is a one-stop shop for all medical services, dentistry and opticianry, that do not require hospitalisation. Although there are also independent dentists and opticians.
Polyclinics buy minor surgery products and diagnostic equipment, as well as other products a UK GP surgery may buy. There is private and government investment in this sector, and private clinics with the facilities for overnight stays are being built. |
General practioners
General Practioners are new to Russia, and they mostly practice in the private sector, providing medical diagnosis and prescriptions, rather than a broader range of services. Medical practioners with capital set out to become a polyclinic.
Pharmacy shopsPharmaceuticals are prescribed at hospitals, polyclinics and GP's, with hospitals and polyclinics dispensing medicines for internal use.
In the main, pharmaceuticals are distributed through small chemists but there are also a number of chains. All chemists are supplied by three important wholesalers. Almost every large block of flats has its own chemist. Chemists are subsidised, and sell medicine in the cheapest way possible, in order to provide maximum social access. To this end, it is possible to buy individual aspirins from a bottle. |
Medical devices
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The importation of medical devices has largely displaced local production. Only two large Russian factories in the Nizhny Novgorod region remain, and both are operating at a level that allows them to sell CE registered goods. Most simple medical devices are imported from China and Pakistan.
Traditionally, Russian medical devices were not single use but this is changing as budgets increase. There is the potential to introduce new single use medical supplies and devices, rather than reusable ones. |
Masks for emergency resuscitation
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Pharmaceuticals
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Up to 80% of pharmaceuticals sales in Russia, are of imported products. There are about 600 companies with a licence to produce pharmaceuticals in Russia, but the top 350 local producers account for only 20% of the value of the Russian market.
Industry estimates suggest that the top one hundred companies account for 90% of local production, and only 20 of these meet GMP (Good Manufacturing Practice) standards. |
Market research for the pharmaceutical industryIn pharmaceutical marketing, it is vital you gain an understanding of doctor's prescribing patterns and motivations, and this requires detailed market research.
At Volga Trader, we can carry out market research on issues of interest in the pharmaceutical market, such as longitudinal and horizontal studies of prescribing patterns. We can also conduct focus groups, in purpose designed rooms, at more than 10 locations across Russia. |
Distributing medical devices
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The diversity of funding sources in Russia, means that there is a diversity of buying patterns.
With medical devices, importers have to register their device. Most small medical devises are then usually sold through local agents. These local agents have close relationships with local medical care providers. |
There are very few nationwide distributors of medical devices and pharmaceuticals, and the few that do exist tend to deal with devices with very high purchase prices. When considering new product lines, they look for extremely profitable products. For less profitable products, it is usually better for an importer to work with local agents.
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