{"id":9745,"date":"2024-08-19T07:44:24","date_gmt":"2024-08-19T05:44:24","guid":{"rendered":"https:\/\/eurotext.de\/en\/?p=9745"},"modified":"2024-09-30T08:47:54","modified_gmt":"2024-09-30T06:47:54","slug":"the-healthcare-market-in-switzerland","status":"publish","type":"post","link":"https:\/\/eurotext.de\/en\/blog\/the-healthcare-market-in-switzerland\/","title":{"rendered":"The healthcare market in Switzerland"},"content":{"rendered":"

Switzerland is renowned for its breathtaking Alpine landscapes, crystal-clear lakes, and charming villages. Beyond its scenic beauty, the country boasts an innovative economy. The Swiss health market is among the most significant globally, driven in part by its substantial healthcare spending, yet navigating it can present challenges. Dive into our latest blog to discover the full details.<\/p>\n

Population<\/h2>\n

The Swiss Confederation is based on a federal state consisting of 26\u00a0partially sovereign cantons, bordering Germany<\/a> to the north, Austria and Liechtenstein to the east, Italy<\/a> to the south and France<\/a> to the west. With a population of just under 9\u00a0million, it ranks among the most densely populated countries in Europe.<\/p>\n

Life expectancy in Switzerland stands at 84.4\u00a0years, surpassing the UK<\/a>\u2019s average of 81.9\u00a0years by about 2.5\u00a0years. In 2022, approximately one in five Swiss residents was over 65\u00a0years old, aligning with the OECD average. The country faces a significant burden of non-communicable diseases like cardiovascular conditions, diabetes, and cancer \u2013 issues often linked to dietary habits, physical inactivity and aging. Mental health concerns also remain prevalent, affecting about one in five citizens in 2022.<\/p>\n

Swiss society is generally characterized by a strong awareness of healthy lifestyles, which is evident in the country\u2019s low rates of smoking and alcohol abuse. The Swiss also tend to feel quite content compared to other nations: among those aged 15 and over, 85% described their health as good or very good, and 83% reported feeling happy.<\/p>\n

Health market<\/h2>\n

The Swiss healthcare system is also based on a federal structure and is financed by a combination of private and public funding. Health insurance is mandatory for everyone living or working in Switzerland, requiring individuals to obtain basic health coverage. Alongside the standard statutory model, alternative insurance options are available, allowing individuals to lower their premiums by opting for a higher Franchise,<\/em> meaning the deductible they need to pay before the insurance covers a share of the cost for medication, clinic visits and hospital stays. Patients are responsible for contributing between 10% and 20% of medical costs (co-payment), up to a specified upper limit. To access services not covered by basic insurance, about 80% of Swiss citizens choose to take out supplementary insurance.<\/p>\n

The Swiss healthcare system is managed by the federal government, cantons and municipalities. The federal government, represented by the Bundesamt f\u00fcr Gesundheit<\/em> (BAG), or Federal Office of Public Health, establishes the legal framework and oversees health insurance companies. The cantons handle hospital planning and financing, medical staff training and supervision of healthcare services within their regions. This system is highly developed and provides a high quality of care, though it comes with significant costs. Switzerland spends approximately 11.7% of its GDP on healthcare each year, placing it second among OECD nations, just behind the US<\/a> at a staggering 16.6%.<\/p>\n

Switzerland is not only home to major chemical and pharmaceutical corporations but also features a robust network of companies in the medical technology, biotechnology and nanotechnology sectors. Industry experts estimate that approximately 1,400\u00a0medical technology businesses are based in Switzerland, making it the highest concentration of MedTech companies in Europe. Around 10% of the sector\u2019s revenue is reinvested into research and development, a strategy that proves successful: Switzerland is at the forefront of patent registrations in these industries.<\/p>\n

Trends<\/h2>\n

The Swiss healthcare system has traditionally focused on acute hospitalized care. However, with the rapidly aging population and the rising prevalence of chronic diseases, experts predict a significant shift towards restructuring. Modernization projects are already underway to update outdated infrastructure and equipment, particularly in hospitals. In 2022, Switzerland imported medical devices valued at approximately $\u00a04.7\u00a0billion.<\/p>\n

Switzerland has a high overall density of healthcare resources, including a substantial number of doctors and hospital beds. However, this density varies significantly by region. For instance, Basel has nine times more primary care providers compared to the rural canton of Appenzell Innerrhoden. This disparity leads to considerable differences in care quality across regions \u2013 resulting in overtreatment in some areas and long, challenging travel distances for older or immobile patients in others. To address these issues, expanding digital care solutions and telehealth services, as well as strengthening outpatient care, could provide valuable improvements and help mitigate these regional inequalities.<\/p>\n

The Covid pandemic also highlighted significant gaps in digitalization within Switzerland\u2019s healthcare sector. Since 2022, the country has implemented electronic patient records, but many e-health services, such as digital therapeutics (DtX), remote diagnostics and monitoring solutions, remain in the early stages of development. Given Switzerland\u2019s demographic challenges, the integration of artificial intelligence and big data will become increasingly crucial for advancing personalized care. This presents a unique opportunity for providers of digital health solutions and health apps to enter a relatively untapped market with promising prospects for high margins.<\/p>\n

The insurance figures also reveal significant potential: Many Swiss residents opt for high-deductible plans, indicating a strong inclination towards personal responsibility for their health. This trend fuels popularity for healthy food supplements, fitness products and self-care services. Additionally, the private health clinic sector presents a lucrative market opportunity. It constitutes about one fifth of the overall healthcare market and benefits from fewer purchasing restrictions. Notably, around 60% of MRI machines are located in the private sector, underscoring its substantial role and potential for growth.<\/p>\n

Legal and regulatory conditions<\/h2>\n

In Switzerland, the approval process for medicines, including antibiotics, statins and hypertension drugs, involves several steps. First, the manufacturer must submit an application to Swissmedic, the Swiss regulatory and supervisory authority for therapeutic products. This application must include extensive data demonstrating the drug\u2019s safety, efficacy and quality. Swissmedic then conducts a thorough review of the data, performs independent assessments and may request further studies if needed. For medicinal products addressing particularly severe diseases or those lacking effective alternatives, a fast-track procedure may be available to expedite approval.<\/p>\n

Following a successful review, the drug receives approval and is granted marketing authorization. This authorization is subject to regular reviews to ensure ongoing compliance with high safety and quality standards. However, approval does not guarantee that the medication will be covered by basic insurance. Coverage decisions are made by the Federal Office of Public Health (BAG) based on an assessment of the drug\u2019s medical effectiveness, usefulness and cost-effectiveness.<\/p>\n

The authority responsible for the regulation and supervision of medical devices, such as wound dressings, surgical instruments and health apps, is Swissmedic. The Swiss Medical Devices Ordinance (MePV), which aligns closely with the EU Medical Device Regulation (MDR), outlines the requirements for companies in this sector. Unlike medicinal products, medical devices do not require official approval. Instead, they are categorized into risk classes and must undergo a conformity assessment similar to the CE marking process. Additionally, manufacturers, authorized representatives, and importers based in Switzerland are required to register with Swissmedic.<\/p>\n

International health market<\/h2>\n

Post-Brexit, Switzerland has concluded mutual recognition agreements (MRAs) with the UK as part of the UK\u2019s \u201cMind the Gap\u201d strategy, including agreements on the Good Manufacturing Practice (GMP) for pharmaceuticals, to align regulatory requirements and facilitate trade. However, there are no comprehensive mutual recognition agreements that cover the broader acceptance of medicines approved in either country, necessitating separate approval processes.<\/p>\n

Manufacturers from the UK and other countries that aim to sell medical devices in Switzerland must appoint a Swiss-based Authorized Representative to liaise with Swissmedic. The devices must comply with the MePV, and manufacturers need to ensure their products meet Swiss risk classifications, adhere to technical documentation and labeling rules and maintain a compliant quality management system. Post-market surveillance and reporting procedures must be implemented, and product information must be translated into Swiss official languages. Additionally, understanding Swiss customs and import regulations is crucial for smooth market entry.<\/p>\n

Internationalization<\/h2>\n

Internationalization is crucial for both market access and maintaining long-term trade relationships. Despite similarities between German and Swiss German, for example, the cultural and regional differences can be significant. Switzerland, as a \u201cnation by choice,\u201d is defined by intercultural values rather than a common language, ethnicity or religion. It focuses on direct democracy, local and regional autonomy, political compromise and neutrality. Effective communication in Switzerland often requires nuanced localization and translation to respect these cultural subtleties and ensure successful interactions. Understanding these aspects can greatly enhance engagement and foster strong, lasting business relationships.<\/p>\n

Switzerland faces a shortage of healthcare professionals, and translating training and education materials can help address this gap and enhance care quality. Skilled translators<\/a>, familiar with specialized terminology, ensure that translations are precise and tailored to the specific text type, communication channel and target audience. Moreover, the complexity of regulatory requirements can be more effectively managed with the expertise of experienced language professionals.<\/p>\n

In Switzerland, the three official languages \u2013 German, French and Italian \u2013 are of primary importance. Additionally, Rheto-Romance (or Rhaetian) is spoken in parts of the canton of Graub\u00fcnden and is also recognized as a national language. Switzerland\u2019s commitment to neutrality is also symbolized by its country code, \u201cCH,\u201d which stands for \u201cConfoederatio Helvetica,\u201d and was chosen to avoid favoring any particular language.<\/p>\n

In Switzerland, alongside the national languages, Yenish, spoken by the Swiss traveling community, is also part of the linguistic landscape. Due to immigration, 9% of the population now speaks languages other than the national ones. Among these, Serbian-Bosnian-Croatian is the most prevalent, spoken by approximately 1.5% of the population.<\/p>\n

Summary<\/h2>\n

The Swiss healthcare market presents compelling opportunities, especially for providers of digital healthcare solutions and health apps. With its advanced healthcare system and a wealthy, tech-savvy population that values personal responsibility for health, Switzerland is ripe with potential. Key long-term growth drivers include the rising incidence of chronic diseases and the rapidly aging population, which are expected to fuel demand for innovative health technologies and solutions.<\/p>\n

Companies may encounter obstacles due to regulatory barriers, the complex and decentralized nature of the Swiss healthcare system and notable cantonal differences. To navigate these challenges effectively, it is advisable for businesses to collaborate with experienced industry experts and skilled language service providers<\/a>.<\/p>\n

They can provide professional specialist translations that are crucial for success in the sensitive Swiss healthcare market. Accurate use of specialized terminology and consideration of cultural nuances not only highlight a company\u2019s commitment to high-quality standards but also provide a competitive edge. By ensuring precise and culturally aware communication, companies can bolster their market position, mitigate risks in terms of liability and reputational damage and support legally compliant and effective interactions.<\/p>\n

References<\/h2>\n