 Changes in economy and
healthcare accompany Poland's accession to the European Union
By Kavitha Ravikumar, Industry Analyst Medical Devices, Frost & Sullivan
Healthcare Practice, UK
London, UK. The European Union (EU) is in a state of flux
following the recent accession of several Central and Eastern European
countries. Their membership has further complicated the already complex
economic, social and cultural dynamics at work within the EU. With a
population of over 38 million, around 40 cities with more than 100,000
inhabitants and an overall population growth rate of about 0.02 per cent,
Poland (which joined the EU in May 2004), is among the 'new' member states
set to play a decisive role in shaping the future of the EU.
In the sphere of international trade, the main export partners
for Poland are Germany, Italy, France, the United Kingdom and the
Netherlands. The import pattern, on the other hand, sees some changes with
Russia and China
emerging as major players in addition to Germany, Italy and France. Seen in
the context of the medical sector, this is in keeping with the phenomenon of
cheaper but good quality medical disposables from Asia and other Eastern
European countries entering potential EU countries and, on their accession,
using them as an entry point to access the rest of Europe. Since its entry
into the EU, all medical devices sold in Poland need to bear the CE mark.
The registration of medical devices in Poland comes under the jurisdiction
of the medical devices section of the Bureau of Drug and Medical Devices
Registration in Warsaw.
The history of healthcare in Poland is similar to many other
countries in central and eastern Europe. The first state healthcare system
was put into place in the late 1940s. Democracy was expected to trigger
change in the Polish healthcare structure but real reforms took effect only
in 1999. This was in the form of separation of the caregivers from the
receivers in terms of payments while, at the same time, maintaining freedom
of access and a system of no payments at the point of delivery. These
reforms which revolutionised the way health services were financed caused
serious disruptions. It is estimated that one in twenty hospitals in Poland
were closed between 1998 and 2001. Efforts were subsequently undertaken to
progressively resolve these issues.
The Ministry of Health controls the health system. This system
has traditionally been centralised in its approach, although constant
efforts have been made to decentralise authority and promote efficiency. The
healthcare market as estimated by the Ministry of Health, was 6.3 per cent
of gross domestic product (GDP) in 2004. The total market for corporate
healthcare services was estimated at approximately US$150 million. This
consisted of approximately US$90 million dedicated to prepaid benefits and
the remaining US$60 million representing statutory occupational health
checks.
Among the key issues currently affecting the Polish healthcare
system include the relatively small proportion of GDP dedicated to
healthcare and the lopsided allocation of resources. The payment pattern in
some cases also tends to be irregular.
At the infrastructure level, inadequacies are reflected mainly
in the lack of efficient healthcare delivery. Local needs are not addressed
effectively and primary care services as well as referrals are poor. On the
technology and supplies front, Polish care givers see a need for better
technology, newer equipment and wider drug availability.
Most governmental reform has been targeted at supporting
private contributions (currently accounting for about 35 per cent of the
market) in order to implement a system of structural payments that would
include insurance premiums and employee benefit schemes. The Polish Senate
has recently voted for amendments to the law on health services sponsored
from public funds. Great interest has also been evinced in foreign
investments and in promoting collaborative endeavours in the Polish
pharmaceutical and biotechnology market.
The year 2004 saw the Polish healthcare system suffer from
unresolved issues related to the National Health Fund Act. A shortage of
resources, lack of service improvements, resultant high levels of public
dissatisfaction as
well as strikes by medical personnel dotted the rather tumultuous Polish
healthcare landscape.
On a more positive note, treatment patterns in Poland have been
beneficially impacted by EU accession. For instance, there is greater
freedom to travel within the EU as well as improved access to overseas
treatment.
Poland is likely to experience steady economic growth in 2005.
Fund transfers from the EU could generate additional capital flows into the
country. This is supported by the fact that the growth of foreign direct
investment was US$7.9 billion in 2004. This marked an increase of 23 per
cent when compared with 2003 and it also represented the highest increase in
the last four years.
The unemployment rate in Poland is relatively high at around 18
per cent. But this is expected to decrease in 2005 due to investments in the
economy. Amendments related to business regulations in the Special Economic
Zones
(SEZ) in March 2005 have resulted in permission to conduct services in the
area of information technology, research and development, accounting,
technical research and analysis and call centres.
In spite of price increases, some border control concerns as
well as a few other teething troubles; Poland is optimistic about its future
as part of the EU. Boosts to agriculture, easier travel, better trade
conditions, improved access to the European market, opportunities for
training and greater financial support are some of the most visible
advantages of the country's membership of the EU.
In the latter half of 2005, the focus will be on the
parliamentary elections scheduled to be held in October. Expected to change
the governing coalition, the elections promise to bring more change to
Poland's constantly evolving
landscape. What will remain unchanged, however, will be Poland's ever
strengthening presence within the EU.
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