Health care in Turkey consists of a mix of public and private health services. Turkey has universal health care under its Universal Health Insurance (Genel Sağlık Sigortası) system. Under this system, all residents registered with the Social Security Institution (SGK) can receive medical treatment free of charge in hospitals contracted to the SGK.
The Ministry of Health (MoH) is the main government body responsible for health sector policy-making and implementation of national health strategies. This is progressed through a combination of funded programmes and direct provision of health services. The MoH is also the major provider of primary/secondary/ tertiary healthcare, maternal health services, children’s and family planning services. It is essentially the only provider of preventive health services through an extensive network of health facilities (health centres and health posts) providing primary, secondary, and specialised in-patient and out-patient services. According to MoH data, in 2006, the MoH had 795 public hospitals and 6,203 health centres. There were 56 university hospitals and a rapidly increasing count of 332 private hospitals.
Healthcare reforms being implemented on a national level and prospects of significant growth are driving foreign investors to Turkey’s medical sector. Enjoying a surge in interest from both hospital chains and investment funds alike, Turkey’s healthcare sector, including subsectors such as dentistry, optometry and home healthcare services, is in high demand for partnerships and acquisitions, particularly from the Far East. Turkey’s healthcare industry is projected to reach USD 160 billion in volume by 2023, from its current volume of USD 60 billion.
The healthcare tourism aspect is also playing a key role in attracting foreign investments into the sector, as Turkey’s hospitals welcomed 130,000 foreign nationals seeking medical care last year, creating a turnover of about USD 400 million. The figure is expected to double in 2016 as the government plans tax-free healthcare zones specifically tailored for foreign patients.
Turkish pharmaceuticals market has a size of c. USD 6.9 bn in 2016. In terms of sales volume, approx. 2.23 bn of boxes have been sold in 2016. The market growth rate has been 5,5% for the sales volume. There are 216 companies manufacturing pharmaceuticals and medical goods in Turkey, which generated
approx. USD 4.3 bn of revenue in 2015. Some of these companies listed in Top 500 and Second 500 Companies by Istanbul Chamber of Industry (ISO) are Abdi İbrahim, Deva Holding, Koçak Farma, Nobel İlaç, Santa Farma, Ali Raif İlaç Sanayi, Adeka İlaç and Eczacıbaşı and Baxter, Biofarma İlaç, and İ.E Ulagay İlaç,
Turkey has a net importer position in medical goods and pharmaceutical products. As of 2016, total imports have been USD 4.53 bn While total exports have been USD 874 mn, bringing net import of USD 3.66 bn in pharmaceutical products and medical goods. The import coverage ratio for the sector has been
0.1x in 2016. The main countries importing pharmaceuticals to Turkey have been Germany (20%), USA (13%), Switzerland (9%), France (8%) and UK (7%) in 2016. Meanwhile, export destinations have been Korea (19,9%), Switzerland (7,2%), Iraq (5,9%), Free Zones (5,8%), and Slovenia (3,5%).
Turkish Medical Devices market has a size of c. USD 3.2 bn as of 2016 and is expected to grow by 8,5% annually by Turkish Medicines and Medical Devices Agency. The market corresponds to c. 7-8% of total healthcare expenditures in Turkey.
In terms of the product breakdown, the highest share in total market belongs to consumables (c. USD 650 mn) and diagnostic imaging (c. USD 600 mn) The country has imported medical devices and equipment of USD 918 mn in 2016 while exports have been c. USD 215 mn , bringing export to import ratio to 0,1x. Turkey has a net importer position in medical devices and equipment market such that the country has imported c. USD 918 mn and exported c. USD 215 mn exports of medical devices and equipment, bringing net import position of c. USD 700 mn in 2016. In the domestic medical devices market, there are approx. 1.600 of manufacturing companies and 2.100 of importer companies.