Health care in Russia: On the verge of an investment race?
By: Modern Russia on June 20, 2011
“Health care in Russia: On the Verge of an Investment Race” briefing at SPIEF 2011
Last year, President Dmitry Medvedev introduced a proposal for large-scale reform aimed at improving health care in Russia. Since then the Russian government has allocated nearly $23 billion to invest in the health care industry over the next two years. The new health care system will require a number of fundamental changes that will impact the overall economy, investment climate and operations of Russia’s health care industry. Many of these issues were addressed at this year’s St. Petersburg International Economic Forum.
Yuri Kretinsky, director of the Institute for the Development of Public Health, moderated the “Health care in Russia: On the Verge of an Investment Race” panel at this year’s St. Petersburg International Economic Forum (SPIEF). The panel gathered various industry executives and government representatives to discuss the new health care system. Panelists addressed a number of topics ranging from the new system’s budgetary impact to cost control mechanisms and the participation of international businesses and financial institutions. Below are some of their thoughts on the industry:
- Nycomed CEO Hakan Bjorklund: "What the industry [pharmaceuticals] needs primarily is predictability…we need to have a legal system that’s predictable and a government system that’s predictable."
- Kaluga Region Governor Anatoly Artamonov: "Healthcare, protection of the health of the people, is a direct obligation of the state in collaboration with businesses."
- Fist Vice Rector of the Higher School of Economics at State University Lev Yakobson: "What Russian health care needs most of all, like the Russian economy generally is investment in change: structural change, institutional change and a change in people’s attitude towards their health."
The participation of international businesses and financial entities
Recently several global pharmaceutical companies have made efforts to strengthen their presence in the Russian market. This has encouraged other companies to consider doing the same. Swiss drug makers Novartis and Nycomed are among many companies who have announced plans to invest in Russia. In December 2010 Novartis announced it would invest $500 million in Russia through a partnership focused on local manufacturing, research and development and public health development. Last year, Nycomed announced plans to invest $86-499 million in the construction of a production plant in Russia by 2014.
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