Kazakhstan’s healthcare sector accounted for 4.5% of overall GDP in 2013. Government priorities in this sector include developing the country’s primary healthcare networks, improving its public health administration system, providing expanded medical personnel training, enhancing mother and child health services, and emphasizing preventive measures such as diagnostics, treatment of social diseases, and patient rehabilitation. Approximately $3.6 billion were allocated to Kazakhstan’s healthcare sector from the 2013 budget. The government plans to allocate approximately $4.2 billion and 4.7 billion to the healthcare sector in 2014 and 2015 respectively.
There is almost no production of medical equipment in Kazakhstan and the government recognizes the need to replace obsolete equipment, which comprises approximately 80% of medical equipment currently being used in the country’s public hospitals. 85% of medical equipment in Kazakhstan is purchased by the public sector. Most procurement for public healthcare institutions is done through government-related tenders.
From 2012 to 2013, the market for medical equipment in Kazakhstan increased by an estimated 2%, with almost all of the medical equipment imported (91%). Medical equipment imports from 2012 to 2013 increased by 2%, totaling $440 million. U.S. market share was 21% of total imports in 2013, valued at almost $95 million. America’s closest competitors are Russia, Germany, and Japan. Local production of medical equipment in 2013 accounted for only 9.6% of the total market.
The best potential for U.S. medical equipment is in the following areas:
The construction of facilities to produce medical equipment and devices is not included in the Government of Kazakhstan’s Accelerated Industrial Innovation Development Program 2010-2014 (AIIDP) designed to stimulate industrial innovation in various sectors of Kazakhstan’s economy. This means that the market will be heavily in need of imported medical devices and equipment. Local producers of medical equipment will not be able to fully supply the market with necessary equipment and there are no capabilities to develop a strong local industry in the near term. Currently, there are about 60 companies in Kazakhstan registered as medical equipment producers, most of which are small businesses with insignificant production volumes.
The Ministry of Health continues to work on the introduction of telemedicine and mobile medicine in the country’s rural regions. The goal of the project is to improve diagnostics and treatment in rural hospitals, improve access to quality healthcare for rural citizens, and further the professional development of medical personnel.
In June 2008, the government of Kazakhstan established the National Medical Holding. A joint stock company wholly-owned by the government, the company comprises seven separate entities that include Kazakhstan Medical Academy, National Center for Maternal and Child Health, National Research Center for Emergency Care, Republican Center for Medical Rehabilitation, National Center for Neurosurgery, Republican Diagnostic Center and National Research Center for Cardiac Surgery. The mission of the National Medical Holding is to introduce international standards of quality and safety of care and to ensure financial sustainability and growth. The holding’s priorities and goals include the following:
For more information contact Commercial Specialist Nurlan Zhangarin.