Demographic trends show continual population decline: the population declined by 5% between 1992 and 2006, up to 21. 6 mn. The decrease was caused by emigration, a fall in the birth rate and a rise in mortality. What is more, health status in Romania is quite poor compared with the other European countries.
According to World Health Organization (WHO) data, the average life expectancy in Romania was 72. 7 years in 2006 (69. 2 years for men and 76.2 years for women), six years shorter than the European Union (EU) average (78. 5 years in 2005).
The most important causes of death are cardiovascular diseases (62. 1% of all deaths in 2006) and cancer (17. 6%), Romania having one of the highest levels of cardiovascular diseases in Europe. In conclusion, Romanian healthcare expenditure still has the lowest weight in GDP if compared to other CEE or EU countries.
Based on the latest data available, the healthcare spending per capita in 2008 (i.e. EUR 336) was 2. 5 lower than the estimated average level for CEE region. Total healthcare expenditure comprising medical services, pharmaceuticals and medical devices, is financed through a combination of public funds (deriving primarily from mandatory health insurance contributions and taxation), but also out of pocket expenses and private health insurance. Out of the total, the expenditure for medical services (both public and private) is estimated to be around EUR 3. 7 bn.
In 2008, the Romanian private medical services market has reached an aggregate value of approximately EUR 325 mn, posting a 30% increase as compared to the previous year. So far, despite current economic conditions brought on by the global financial crisis, the private healthcare market follows a strong positive trend. The majority of the large medical service providers have announced significant increases in revenues for the first half of 2009 as compared to 2008, also triggered by the recent expansion and heavy investments in 2008.
While public sources may differ in their views on estimated future growth, the market consensus is that the Romanian private medical services market will continue to outpace the region, recording significant growth over the next few years. Based upon an estimated CAGR of 35% over 2008-2011, PMR Publications sees the private medical services market slightly above EUR 800 mn in 2011. While the high growth rates apply to a low base, the increase is justified by the overall demand and the need to align at least with the CEE healthcare spending average.
Value of the private medical services market in Romania (EUR mn), 2005-2011 Source: PMR Publications The Bucharest market, seen at around EUR 150 mn in 2008, represents about 45% of the total private medical services market. In order to meet the overall demand, it is expected that the private clinics and hospitals will further develop throughout the country, decreasing the share of the Bucharest market to one third.