Sweden – open to technical innovation

Sweden’s medical technology market offers suppliers lucrative business opportunities in view of its high standards and large-scale procurement. In particular the construction of the new Karolinska University Hospital in the greater Stockholm area is set to generate great demand. Innovative high-quality products at competitive prices which are well-designed and offer functional use generally have the best market opportunities. Germany is Sweden’s second most important supplier of medical technology.
Sweden is an attractive and sophisticated medical technology market. The market size was estimated at 17.2 billion Swedish Krona (€1.6 billion; average annual exchange rate 2009: €1 euro = SEK 10.62) in 2009 according to sector association figures. Healthcare facilities are usually equipped with state-of-the-art medical technology. The healthcare sector is receptive to technical innovation, which enables improved diagnosis and treatment. There is also high acceptance of cost-effective solutions, owing to the financial constraints of the health care providers.

Constant high demand for medtech
The construction and modernization of hospitals over the coming years should ensure constant high demand for medical technology in Sweden. A great deal of attention is currently being focused on the new large-scale Karolinska University Hospital in Solna near Stockholm with its vast supply requirements for medical technology equipment. According to the Skanska project and development group commissioned with the project, the Swedish capital is undertaking the largest hospital building project in the world in the form of a public private partnership (PPP) with its 2010 order allocation. The new hospital is intended to be a hub for medical care, research and training. This is a key part of Stockholm’s plan to establish itself as a leading global location for the healthcare industry by 2025.
The construction costs alone stand at almost SEK 14.1 billion. The hospital is to provide over 700 in-patient beds and capacity for up to 1,600 patient visits per day. The subsequent administrative hospital operation, which is part of the PPP project, will be carried out by the service provider Coor Service Management. The project contract runs until 2040. All treatment and care services, which are set to start in 2015, as well as medical responsibilities are excluded from the PPP model and lie with the Stockholm administrative district. This also includes all medical equipment, the purchasing cost of which is estimated at 30 to 50% of the construction volume. In addition to the new Karolinska building, further hospitals are also to be constructed over the coming years.

Market observers primarily see supply opportunities in Sweden for innovative high-quality products at competitive prices in combination with functional use and good design. Experts attach particular importance to the segments covering operating room equipment and instruments, diagnosis apparatus, orthopedic equipment, monitoring systems and telemedicine.
A large share of the purchasing budget of Swedish hospitals is currently spent on IT-based systems. There is particular demand for the digitalization of patient and hospital information and archives (including radiological and in particular CT information). Wireless applications for flexible use of equipment in large, complex hospitals also remain a priority. Dental technology is another attractive market.

A high degree of concentration
Swedish healthcare policy is attempting to adapt services and hospital capacities to meet future requirements. The proportion of the elderly in the population has risen rapidly since the 1970s and creates a constant increase in demand for remedial treatment, rehabilitation and care services. The provincial governments are responsible for the budgets and planning of healthcare services and procurement. They both provide and run hospitals, polyclinic treatment centers and additional facilities.

The healthcare system is entirely financed by central taxes. However, patients have to pay relatively high consultation fees and their own contributions for treatment and therapeutic care. The government and municipal authorities have been pushing ahead with privatization processes for some years. Healthcare services look set to remain within the state system in future, but increasingly provided by private companies. Treatments that are decoupled from public healthcare, as well as purely private medical care, are virtually nonexistent.

There is a high degree of concentration in the Swedish medical technology sector. The major players – Gambro Indap, Getinge, Mölnlycke Healthcare, Nobel Biocare and Elekta – account for around 75% of sector revenues. The Gambro Group, which specializes in dialysis and liver replacement treatment, and Getinge, which focuses on wound care, infection control and intensive medicine, generate around 50% of total revenues alone. In 2009, Swedish companies manufactured medical technology products worth SEK 23.1 billion. According to the sector association, sales were primarily made in the urology/kidneys (around 25%), dental (10 to 13%) and operating room equipment (10 to 15%) sectors. A slight increase in production is anticipated in both 2010 and 2011.

There are medical technology clusters in the Stockholm, Gothenburg and Malmo/Lund conurbations. The most important hub with dynamic research activities is in the Stockholm region, in particular in connection with the Karolinska Institutet. German companies in the sector have been traditionally well represented on the Swedish market. The larger companies include Siemens, Dräger, B. Braun Medical, Otto Bock, Carl Zeiss and Fresenius. In 2010, Swedish imports in the key medical technology product groups increased by 11.6% compared to the previous year to around €1.5 billion. Around 14% of imports in the sector came from Germany, which is the second most important supplier country after the US. The Netherlands and Belgium are also leading suppliers. Around 75% of supplies were imported in 2009, according to sector association figures. Swedish manufacturers are also heavily export-oriented with levels of just under SEK 24 billion. The provincial governments are responsible for the procurement of medical technology products and equipment in Sweden. They decide upon purchasing in conjunction with the central purchasing departments of large hospitals. The government agency for medical products is responsible for the authorization of medical equipment. All public organizations use e-procurement services. Generally, all invitations to tender are posted online. The service provider Allego compiles Sweden’s public tenders at www.allego.se. Other procurement organizations also provide information on their own websites. The provincial governments have a central service online at www.upphandlingar.com/lfu
Christian Tippelt, Germany Trade & Invest, Stockholm

German Summary
Der Markt für Medizintechnik in Schweden bietet Ausrüstern aufgrund hoher Standards und umfangreicher Beschaffungen lukrative Geschäftschancen. Insbesondere der Neubau des Universitätskrankenhauses Karolinska im Großraum Stockholm sorgt für großen Lieferbedarf. Gute Marktchancen haben in der Regel innovative Qualitätsprodukte zu wettbewerbsfähigen Preisen verbunden mit funktionaler Handhabung und gutem Design. Deutschland ist das zweitwichtigste Lieferland Schwedens für Medizintechnik. Der deutschsprachige Beitrag ist nachzulesen auf www.meditec-international.com/medi0611swe

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