HBSQuarterly

In this issue we bring you what we hope is an interesting mix of subjects concerning healthcare policy, cutting edge technology and a focus piece on the key market of Rigid Endoscopy. In line with market developments, a significant amount of HBS Consulting’s work at the moment concerns advising clients on the impact of healthcare reform initiatives across Europe.

One of the key developments in this respect in the last few weeks must have been the speech by Germany’s Chancellor Schroeder on the reform plans of his government. As is so often the case with politicians, the speech was rich in ideas and short on detail, but it is clear that healthcare cost containment is central to the German government’s policy review. There is now no doubt that Europe’s biggest market will see wide ranging healthcare benefit cuts for patients, as well as an overhaul of the reimbursement system. While this is mainly aimed at pharmaceutical companies, it does suggest a whole new approach to the subject. Early indications imply that Germany will go down the route of the United Kingdom, and use an agency along the lines of the National Institute of Clinical Excellence (NICE), which sanctions treatments as cost effective, and thus reimbursable, or otherwise. Its purpose will be to remove the estimated 30% of drugs from the reimbursement list that have been shown to have little or no efficacy! It is almost certain that this process will have an impact on the medical devices industry as well, although not as markedly. Another key policy of Germany’s healthcare reform is the total commitment to the Electronic Patient Record and Health Smart Cards. These initiatives are designed to make the system more efficient for the patient but also identify waste and make the healthcare provider more accountable. Undoubtedly, Germany will remain Europe’s most attractive market, but the dynamics will change considerably.

We will continue to monitor and comment on these changes in our Quarterly. We would welcome your comments on any articles or issues raised either by mail or e-mail.

Yours sincerely,

Rupert Houghton, Director of Business Development