Overview

With a population of over 84 million, Turkey is a growing market for medical technologies and healthcare services. The Ministry of Health (MoH), responsible for planning and implementing healthcare policy, is also Turkey’s largest healthcare service provider. According to Turkish Statistics Institute’s Health Expenditure 2020 report, Turkey’s healthcare expenditure increased by 24.3% in 2020. The public sector was responsible for 79% of Turkey’s healthcare-related expenditure. The public and private sector together spent $2.4 billion on healthcare infrastructure investments.

Nevertheless, Turkey still spends less on healthcare than the OECD average. According to the OECD’s latest reporting, Turkey’s healthcare spending per capita was $1,267 in 2019.  Turkey’s universal healthcare system covers 95% of the citizenry. Private insurance currently accounts for only 2.6 % of total healthcare spending in Turkey.

In 2003, Turkey implemented a major healthcare initiative to improve access to healthcare. Through this initiative, the Social Security Institute (SGK) began reimbursing private hospitals that agreed to deliver healthcare to public insurance beneficiaries at public reimbursement rates. The MoH also utilized a public-private partnership model to build new public hospitals and renovate existing ones.

There are currently 895 public hospitals, as well as 63 universities and 575 private hospitals in Turkey, housing a total of 237,500 hospital beds. The public-private partnership model was used to construct thirteen new public hospitals, with five more under construction, in what will constitute approximately 10% of Turkey’s total hospital bed capacity.

Today, nearly all major advanced medical technologies are available in Turkish hospitals. Turkish hospitals have 43,488 ICU beds, 75% of which have ventilators. Equipment stock of key medical technologies in public hospitals using 2020 data from the MoH is provided in the below table.

The SGK reimburses certain medical expenses that involve the use of specific medical equipment and pharmaceuticals identified on the ‘National Reimbursed Medical Technologies List’ (SUT list) and that are accrued by social security recipients at public hospitals and some private hospitals. Medical equipment manufacturers who want to be part of the reimbursement system must ensure that their equipment is included on the SUT list. Private hospitals are not obliged to participate in this reimbursement program and manufacturers of equipment and pharmaceuticals work with these private hospitals on an account basis.

Turkey is a popular destination for medical tourism. Patients from Europe and the Middle East travel to Turkey for medical treatment as high-quality healthcare services are offered at more economical prices. According to the MoH, in 2019 approximately 662,000 international patients visited Turkey, contributing nearly $1 billion to the economy. This industry was significantly impacted by the COVID-19 pandemic in 2020 but rebounded in 2021.

Turkey has sought to increasingly use health IT solutions in the country’s healthcare structure. The MoH employs software developers for many of the health IT tools it uses. Citizens’ healthcare information is recorded in an Electronic Health Record (EHR) and centrally stored on MoH servers. The system produces e-prescriptions and allows pharmacies to claim receivables from the SGK online. The MoH uses its centrally stored healthcare data to forecast the population’s health and to analyze illness patterns. The MoH has implemented additional initiatives to reduce diagnostic errors, support telemedicine, and assess public hospitals.

Nearly 80% of Turkey’s medical devices are imported. Approximately 20% of Turkey’s imports of medical devices come from the United States. Due to the depreciation of the TL against the U.S. dollar, the GoT had been able to manage currency losses against an increasing demand for healthcare services by maintaining steady Turkish-lira based reimbursement prices for medical devices. This, however, caused problems for foreign firms which stopped introducing or discontinued sales altogether of certain products in Turkey.  As a result, the SGK increased reimbursement prices of medical devices by 85% in TL terms at the beginning of 2022.

U.S. companies seeking to market medical equipment and health IT solutions in Turkey should find representatives in the Turkish market with strong business development capabilities. Because of Turkey’s Customs Union agreement with the European Union, Turkey follows the EU’s medical device directives. In May 2021, Turkey made applicable the EU’s new Medical Device Regulation (MDR) for all quality control and trading purposes. Turkey requires medical devices to bear the conformity compliance mark (CE Mark) to be marketable in Turkey. Representatives of U.S. companies selling medical equipment in Turkey must register products in the National Data Bank for tracking purposes. To learn more about registering in this data bank, please e-mail the CS Turkey Commercial Specialist listed below. Products falling under the reimbursement system should also be registered with the SGK separately.

Leading Sub-Sectors

Approximately 6,000 companies operate in the medical device and disposables market in Turkey. Domestic medical devices companies primarily manufacture disposables, orthopedic implants, surgical tools, stents, prosthetics, surgical gowns, masks and drapes, and hospital furniture. In early May 2020, in response to the global pandemic, a Turkish consortium led by technology company Biosys launched the first widely used, local mechanical ventilator. Development and manufacturing of laboratory reagents is also a growing field in Turkey with nearly ten Turkish diagnostics companies having developed COVID-19 tests. All major categories of medical equipment exist in both private and public hospitals throughout Turkey. Hospitals continue to seek state-of-the-art and innovative medical equipment and solutions. Turkey imports the following medical equipment and devices:

• Advanced pre-screening and diagnostics devices
• Advanced imaging equipment
• Advanced radiation oncology technologies
• Advanced point-of-care devices
• Advanced surgical devices
• Wound management devices
• Dental equipment
• Robotic surgery equipment
• Health IT solutions, especially for critical decision-making processes
• Telemedicine systems

Opportunities

Total bed capacity in Turkish hospitals exceeds 230,000. With the support of the MoH, Turkey’s healthcare system has further evolved, presenting opportunities for U.S. companies. As Turkey continues to expand its private and public hospital network, and host more international patients, purchases of advanced medical equipment will likely increase. Telemedicine and virtual care solutions are now standard offering in healthcare facilities. Related technologies have growth potential in Turkey.

For further information, contact:

Ebru Olcay

Senior Commercial Specialist – Healthcare Sector Lead

U.S. Commercial Service

U.S. Consulate Istanbul, Turkey

Ebru.Olcay@trade.gov