RUSSIA - Medical Device Industry and Demographic Data

Shown below you will find some basic demographic and economic data, plus information specific to the medical device and healthcare industry.

Capital city: Moscow

Total area: 17 075 200 km²

Population of Russia: 140 million

Currency: Russian rubles (RUB)

Language: Russian

Structure of Russian population:
0-14 years: 14.8%
15-64 years: 71.5%
65 years and over: 13.7% (2009 est.)

Healthcare expenditures: $794 per capita (at int. $ rate, 2007 data)

Number of hospitals: 9 500 (2007 data)

Healthcare financing in Russia: The Russian system is in transition. In 1991 territorial funds were created in each of Russia's constituent regions and through the mandatory medical insurance system (OMS) they finance the local healthcare providers. The methods of covering costs of outpatient services differ between the regions. Most of the regions implemented fee-per-visit method. The other methods in use are fee-per-service, fee-per-case, capitation, budget line item, etc. The same discrepancy in the use of financing methods applies for inpatient care. Most of the regional OMS funds uses the per-case fee or per bed-day fee. Other methods used are global budget, average cost of hospitalization, etc. The use of the method also depends on the type of healthcare provider. The quality of healthcare service is not even between the regions. Patients must often rely on out-of-pocket payments for treatment because the medical insurance is not well managed.

Russian medical device industry: The Russian medical device market was valued at $2.4 billion. The market is expected to grow annually at a rate of 8.1 %. The market is import-led, about 75 % of the market is supplied by imports. The domestic producers are usually small, undercapitalized and mainly focused on inexpensive low tech devices. The obsolete medical devices in hospitals should create a huge demand for new equipment. Overall, the opportunities are especially big in high tech medical devices.

Medical device distributors in Russia: There is a large number of medical device distributors in Russia. The majority of the distributors is located in Moscow and St. Petersburg and other Russian cultural centers - Samara, Yekaterinburg, Perm, Krasnoyarsk. Distributors commonly receive direct shipments from foreign manufacturers or from their representative office in Russia. Many distributors have their head office in Moscow and representative offices in other regions. Other regional distributors may have direct contract with manufacturers or buy products from a centralized distributor located in Moscow or in St. Petersburg.