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Investment Opportunities in the Bulgarian Healthcare Sector

Sector Overview

It its great majority, healthcare in Bulgaria is still largely dominated by government. There has been little or no competition in many areas of healthcare services and the opportunities are vast.

Government interference with healthcare in Bulgaria has naturally caused massive problems in the sector. Thus the Bulgarian health care sector continues to faces huge problems - abuse with funding, understaffing, supply shortages, brain drain, bribes to doctors and nurses for better treatment, high debts and chronic lack of money.

Quality private clinics for most healthcare services are in huge demand in Bulgaria as people try to get away from the poor quality of the government provided healthcare!

Still the Bulgarian government spends about 4.2% of its GDP on health. All employed and self-employed Bulgarians are obliged to make monthly health insurance contributions of 8% of their income to the Health Insurance Fund, which is the only player on the market and has been plagued by corruption and funds siphoning. Besides the health insurance contributions that the State pays for the people under its wing are meager.

When struck by a severe condition, wealthy Bulgarian regularly go abroad for treatment.

Hospitals across the country are forced to suspend planned operations and reduced admission of emergency cases. Some even switched into a war-time regime, tapping into the reserves, meant to be used in case of natural disasters and wars.

At the same time in 2012, the European Union is offering BGN 300 M in funds for equipment and repair works at hospitals.

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