FRANCE - Medical Device Industry and Demographic Data

Shown below you will find some basic demographic and economic data on France, plus information specific to the medical device and healthcare industry.

Capital city of France: Paris

Total area: 550 000 km²

Population of France: 65.4 million

Currency: euro

Language of France: French

Structure of French population:
0-14 years: 18%
15-64 years: 65%
65 years and over: 17% (2011 est.)

Life expectancy at birth:
Male: 78 years
Female: 85 years

Healthcare expenditures total (% of GDP): 12%

Healthcare expenditures per capita: $4840 (USD)

Expenditures on healthcare:
Government: 78%*
Private: 22%**

Number of hospitals: 972 public; 1800 private (2007 data)

Healthcare financing in France: Since 2004, a new fee-for-service reimbursement system (T2A) has gradually replaced the historical funding system for public hospitals ion France. This T2A indicates that hospitals are reimbursed based on the number and complexity of cases they treat. The medical goods and related services that are reimbursable by the statutory health insurance funds are registered in a positive list, the so-called "Liste de Produits et Prestations Remboursables" (LPP). The National union of health insurance funds (UNCAM) has defined a positive list of procedures, drugs and devices since August 2004. UNCAM is responsible for setting the tariffs for medical procedures, drugs and devices (instead of the State), and for determining the levels of co-payment and coinsurance.

Medical device industry in France: French medical device market ranks the second biggest market in Europe (16% of the total European output) and the fifth worldwide. In 2009, the French market is valued at $9.1 billion. The growth is expected to be moderate due to the new government measures on medical device spending reaching US$12.5 billion by 2015. The total imports of medical devices amounted to $10.3 billion in 2008 but not all products are destined for the domestic market. The French market is supplied by French-owned companies and by growing share of foreign sales subsidiaries of multinational companies. Most of these companies are small or medium sized but the ten largest companies account for 30% of total sales. Imports have grown at a faster rate than the overall market; due partly to a rise in re-exports in certain sectors, most notably pacemakers. The strength of French producers lies in highly advanced medical devices such as implants. Opportunity: A shortfall in some equipment areas such as imaging and radiotherapy equipment can bring very promising prospects. Expansion of homecare sector will increase the need for home-use medical disposables. Threats: Increasing pressure on hospitals to adopt more competitive purchasing procedures. Targets include cutting spending on medical devices by 10%.

Medical device distributors in France: There are very few traditional medical distributors in France and the majority of medical device distribution is done by manufacturers. These manufacturers usually distribute third party products in addition to their own products. It may take much more time to get your device launched in the French market as this market is not as transparent as the surrounding markets. Speaking the language is also a major advantage.

* Government expenditures include all spending on healthcare passed through governmental agencies regardless of the funding source. Source: World Health Organization global health expenditure database. 2010 data.
** Private healthcare expenditures include private medical insurance, direct out-of-pocket payments by the consumer and other non-governmental sources. Source: World Health Organization global health expenditure database. 2010 data.