Azerbaijan looks set to be a growing player in health care industry

The young but rapidly growing oil-rich Azerbaijan, which gained independence from the Soviet Union in 1991, is presenting itself as a very attractive ground for global health care investors. Continuing government reforms coupled with the shortage of medical expertise, equipment and personnel are driving the transformation in the country’s health care market. The government has increased its health care budget more than 10 times in the past decade and built or remodeled over 500 health care facilities so far, notes Frost & Sullivan.

With a growing population of over 9 million, averaging 30 years of age, Azerbaijan’s future health care system will depend on an organized and well-established public health sector. Currently, Azerbaijan’s health care expenditure remains small when compared to its GDP. This means higher out of pocket payments for patients; 62% of fees in 2007 were OOP.

To alleviate this burden, the state is aiming for universal welfare as well as other reforms aimed at improved health care infrastructure and financing freedom to hospitals and health care providers. More than $225 million was spent for 9 state health care programs, with total health care spending at $612 million in 2010 and expected to rise to $760 million in 2013.