German Med-Tech Industry Grows On Solid Ground

Is the German med-tech industry hit by the global financial crisis? The sector is “clearly strained,” says Joachim M. Schmitt, Managing Director and Member of the Board of the German Medical Technology Association, BVMed. But, the good news is, employment is up and “We are at the beginning of a medical technology revolution. Overall, healthcare is certainly more panic-proof than, for example, the automobile industry,” Schmitt says in a pre-MEDICA discussion with the healthcare magazine European Hospital.

“We don’t choose when to become ill and require treatment,” he adds. “However, the arrival of the financial crisis in the real economy will inevitably affect our industry, for instance the credit requirements of start-ups or smaller, innovative companies. The general pressure is also reflected in the results of our current autumn survey. The mood in the medical technology industry has significantly deteriorated compared to last year. Around 37% of companies expect significantly improved results for 2008 compared to the previous year, but 28% of the companies expect worse results. The profit situation in the med-tech sector is therefore clearly strained.”

“BVMed companies are particularly looking for more flexibility with the compensation/accounting systems from healthcare politics,” Schmitt adds. “If we are to safeguard the financing of statutory health insurance in the long term,  we need to discuss new ways, such as preferential tax treatment for innovations. If we are to promote medical progress, we need to do this in a more coordinated way and place more emphasis on quality aspects then the medical technology companies will continue to be the drivers of the healthcare economy for the benefits of patients. Even the financial crisis won’t change this.” 

Nonetheless, in terms of a global position of German med-tech firms Schmitt is certain that Germany is “well placed.” “In the promising fields of medicine technology innovation, Germany is in a good position to introduce new products and procedures to the market due to its high number of well-trained doctors, researchers and engineers and high standards in clinical research,” he adds.

Tags: BVMed, German Med-tech industry