Netherlands's pharma products per capita spending considerably lower than nearby Belgium, France or Germany at $573 in 2009

The Netherlands has a long history of providing accessible healthcare, although resources are comparatively low for a West European country, notes a new report from Espicom.

The government has introduced a mandatory health insurance scheme, which commenced in January 2006. This replaced the previous two-tier system and provides basic health insurance cover for acute care services with a separate scheme for long term medical care.

The new health insurance act has substantially increased price competition amongst insurers and healthcare providers resulting in one of the most market-oriented health care systems in Europe.

Per capita expenditure on pharmaceutical products is considerably lower than nearby Belgium, France or Germany at $573 in 2009, says Espicon.

Comparatively low spending on pharmaceuticals has been achieved through heavy reliance on generic products, which now account for more than half the market by volume. Generic revenues contracted in 2008 as a result of a price war between suppliers in response to health insurers implementing a preferential supplier policy.

The Netherlands has a well respected contract research and development environment, although few multinationals currently have manufacturing plants there, the report notes.