Digital Healthcare Solutions & Specialized Medical Services
Digital Healthcare Solutions & Specialized Medical Services
Business Model Description
Develop and deliver digital healthcare solutions, such as telemedicine, patient portals, mobile health, and electronic health records to Serbia's rural areas, the older population, young people needing remote assistance, and patients with specific conditions and requiring specialised medical services, such as cancer, HIV/AIDS, tuberculosis, and diabetes.
Expected Impact
Improve healthcare service delivery overall, and enhance access to healthcare solutions for underserved areas.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Serbia: Belgrade Region
- Serbia: Šumadija and Western Serbia
- Serbia: Vojvodina Autonomous Province
- Serbia: Southern and Eastern Serbia
Sector Classification
Health Care
Development need
The average age of the population of Serbia is 43.5 years. The largest share of the population is the population aged 65 to 69 (7.8%) (1). An increased representation of old, chronically ill and functionally dependent persons is expected in the future. In Serbia, there is a lack of focus on disease prevention and promotion of a healthy life.
Policy priority
The Republic of Serbia adopted the Public Health Strategy 2018–2026. The Strategy's mission is to develop and implement a system of knowledge, skills and activities aimed at improving health, preventing and suppressing diseases, prolonging and improving the quality of life through organized measures of society (6).
Gender inequalities and marginalization issues
Women in Serbia face challenges in accessing healthcare services due to various factors such as geographical location, socioeconomic status, and cultural beliefs. Rural women, women living in poverty, and women from marginalized communities are more likely to experience barriers to healthcare access (5).
Investment opportunities introduction
Total budget expenditure on healthcare during COVID in 2021 was 0.78 billion USD, which is 2.2 times more than in 2019 (12). Planned budget for 2023 is 0.84 billion USD, which shows significant growth but is not enough for further development (17). Policies are focused to the development of health prevention and control, including early detection (6).
Critical bottlenecks introduction
Providing required funding for the healthcare system is a very challenging issue. In 2019, 37.04% of total spending in Healthcare was an out-of-pocket expenditure (11). The sector's overall expenditure in 2021 does not exceed 4.69% of GDP and its general budget barely reaches 4.32% of the state budget, whereby WHO recommends 10% (12, 13, 14).
Health Care Providers
Development need
In the health institutions of Serbia, there is a deficit of various specialists such as anaesthesiologists, neurologists, paediatricians, and ophthalmologists. The number of these specialists has been further reduced by half due to the Coronavirus pandemic. According to the 2021 analysis of the Fiscal Council, there is a shortage of 5,000 health workers in the country (6).
Policy priority
The establishment of a Platform for Sickness will improve the health part of recovery, provide online consultation between doctors and the patient, and will enable electronic prescriptions to medical and technical aids (1, 2).
Gender inequalities and marginalization issues
A large part of the Roma population does not have access to health care, and they also face the problem of making appointments because they do not have access to the internet or mobile phone (3).
Investment opportunities introduction
Technological progress fundamentally changes the current approach to health and represents, in addition to raising the population's quality of life, a significant opportunity for the country's economic development (2).
Key bottlenecks introduction
The healthcare system in Serbia is in a difficult situation due to dissatisfied and overburdened healthcare workers who aspire to go abroad for better jobs (4). As a measure to retain nurses, Serbia terminated the agreement with Germany on the departure of workers to this country (8). Also, not all people have the same access to healthcare, especially farmers and Roma.
Health Care Distributors
Pipeline Opportunity
Digital Healthcare Solutions & Specialized Medical Services
Develop and deliver digital healthcare solutions, such as telemedicine, patient portals, mobile health, and electronic health records to Serbia's rural areas, the older population, young people needing remote assistance, and patients with specific conditions and requiring specialised medical services, such as cancer, HIV/AIDS, tuberculosis, and diabetes.
Business Case
Market Size and Environment
< USD 50 million
5% - 10%
Market size for Digital Healthcare Solutions and Specialized Medical Services is approximated as private clinics, encompassing general hospitals and clinics, revenue percentage. The yearly realized revenue in Serbia is close to 94 million USD, and digital health platforms would occupy up to 20% of mentioned revenue, which results in 19 million USD (36).
On the global level, the market of innovative medical equipment reaches a CAGR of 5.5% (36), while the lobal CAGR of digital healthcare up to 2025 is approximated to 30% (40, 41, 42).
Indicative Return
> 25%
CAPEX in technology, including for medical solutions, is relatively small compared to other industries, which leads to an expected high profitability and quick return with a ROI approximated at 30% based on stakeholder consultations (7).
Investment Timeframe
Short Term (0–5 years)
With an expected return on investment of around 30%, an investment timeframe of 3-4 years is anticipated based on stakeholder consultations and global analyses (7, 40).
Ticket Size
USD 500,000 - USD 1 million
Market Risks & Scale Obstacles
Business - Business Model Unproven
Market - Highly Regulated
Impact Case
Sustainable Development Need
Serbia's population is required to endure long waiting times for numerous medical services, especially for specialist examinations in public health institutions in Serbia. Therefore, patients who can, often go to private hospitals, which, however, are unaffordable to many (38).
The uneven distribution of health professionals nationwide and shortages in some specialties exacerbate accessibility problems. High fees for health care services, amounting to over 40% of total expenditure on health, contribute to relatively high levels of self-reported unmet need for medical care (35).
Gender & Marginalisation
Even though Serbia's healthcare system is universal, with free access to publicly provided services, there are inequalities in access to primary care and certain population groups, such as the uninsured and Roma, who often experience problems in accessing care (35).
Expected Development Outcome
Digital healthcare solutions and specialized medical services by health providers improves the health status monitoring and evaluation, which is expected to reduce health inequalities (2).
Digital healthcare solutions improve the accuracy and efficiency of diagnosis while it reduces healthcare costs at the same time. Digital healthcare solutions also lower the need for paper records and physical travel, which has a positive effect on the environment (2).
Gender & Marginalisation
Digital healthcare and specialized medical services increase healthcare access while reducing travel especially for rural areas. Technology brings healthcare to more people, especially those at risk of exclusion (34).
Digital healthcare and specialized medical services takes into account women's significant representation in the healthcare system, as well as in STEM, and promotes a multidisciplinary approach to the development of digital healthcare solutions and specialized medical services and can advance research and solutions that benefit both women and men, as well as create career development opportunities for women, particularly for future jobs.
Additionally, increase access to healthcare services for rural or remote population reduces the burden on women who, due to gender roles, are primarily responsible for caring for sick family members at home.
Primary SDGs addressed
3.c.1 Health worker density and distribution
3.8.1 Coverage of essential health services
In 2020, about 105.2 thousand health workers were employed in the healthcare system. Therefore, the number of doctors per 100,000 inhabitants in the Republic of Serbia was 291 (2).
Universal Health Coverage Index of 70.71 (2019) (31).
N/A
N/A
9.5.2 Researchers (in full-time equivalent) per million inhabitants
2,167.1 (2020) (33).
N/A
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Outcome Risks
If the healthcare solutions are not well set up and delivered, the quality of medical service could be reduced, and may lead to negative health impacts in the worst case (50).
Digital healthcare solutions feature the risk of data breaches and face privacy challenges (50).
Users of digital healthcare solutions may wrongly associate the information they find with more severe conditions than what their caregiver diagnoses them with (50).
If access to technology education is not provided to marginalized groups, software solutions may widen the digital divide and limit the uptake (30).
Impact Risks
The population of Serbia, whether men or women, have lower digital skills compared to the EU-27, particularly in the domain of digital problem-solving skills, which may limit the uptake (30).
The quality and resultant impact of medical services may be reduced since some parts of Serbia have not been covered with a high-quality internet connection (49).
Impact Classification
What
Digital healthcare solutions provide access to medical services to a larger population, especially in rural areas, which contributes to improved healthcare conditions.
Who
The public, rural communities, healthcare and IT workers benefit from development of digital solutions in healthcare field.
Risk
Due to level of digital literacy, patients with low education level and patients from areas with weak internet connectivity may be excluded.
Impact Thesis
Improve healthcare service delivery overall, and enhance access to healthcare solutions for underserved areas.
Enabling Environment
Policy Environment
Strategy for the continuous improvement of the health care quality and patient safety, 2021, indicates the initiative for improvement in inefficient use of health technologies, procurement of medical equipment and further investments (8).
Strategy for Continuously Improving Health Care Quality and Patient Safety, 2021 indicates the technologically modern and safe information technologies in health institutions as a component of an integrated health system and support for improving the health care quality (24).
Strategy for the Development of Artificial Intelligence (AI), 2019 indicates that AI in the healthcare system can significantly improve early diagnostics, ensure better availability of resources and equipment and optimize their use, and improve the quality and efficiency of healthcare services (21).
Strategy of Scientific and Technological development, 2020 "The Power of Knowledge" indicates a focus on research and development in health to answer society's growing needs (3).
Financial Environment
Financial incentives: There are numerous grants for startups working in technology, including digital health and telemedicine platforms, such as for the development of innovative technologies, products and services with market application (26).
Fiscal incentives: Tax incentives for newly founded innovative companies, including in healthcare, in Serbia include an increased deduction for research and development expenses, exclusion of qualified income from the corporate income tax base, and tax credit for investing in startups (22).
Other incentives: The Laboratory of Health Tech held its first bootcamp Capsule 2030, which is aimed at young professionals who are interested in entering the field of HealthTech, MedTech or BioTech innovation, or those who have already developed their own startup or innovation in this field (37).
Regulatory Environment
The Law on Health Documentation and Records in the Field of Health, 2014 regulates health documentation, all content of health documentation and records, the way and procedure of keeping them, the persons authorized to keep them, and deadlines for submitting and processing data (25).
Healthcare Law, 2019 indicates that patient has the right to all types of information regardless of the state of health, health service, and how it is used, as well as all the information that is based on its scientific research and technological innovation available (27).
Patient Rights law, 2013 captures that the patient has the right to all information about the state of his health, the health service and how he uses it, as well as to all information that is available based on scientific research and technological innovations by the law on patients' rights (28).
The Law on Electronic Communications, 2010 regulates electronic communications, including providing internet services and protecting personal data in the context of electronic communications (29).
Marketplace Participants
Private Sector
Companies such as Euromedik, Belmedic, Medigroup, and investors such as ICT Hub, Devtech, Microsoft, Nordeus, Roche, Epsilon Research International doo.
Government
Ministry of Health, Ministry of Science, Science Technology Park, Fond of Innovative Activities in the Republic of Serbia.
Multilaterals
Serbian Entrepreneurs, World Health Organization (WHO), United Nations Development Programme (UNDP), ECHAlliance, National Alliance for Local Economic Development (NALED).
Non-Profit
United States Agency for International Development (USAID), Serbian Blockchain Initiative, Health Tech Lab.
Target Locations
Serbia: Belgrade Region
Serbia: Šumadija and Western Serbia
Serbia: Vojvodina Autonomous Province
Serbia: Southern and Eastern Serbia
References
- (1) Ministry of Trade, Tourism and Telecommunications. Information society and information security development strategy of the Republic of Serbia for the period 2021-2026, 2020. https://mtt.gov.rs/extfile/sr/35311/Strategija%20IDIB%202021-20261.pdf;Possible directions for increasing the efficiency of the health system in Serbia
- (2) Government. Program of economic reforms from 2022 to 2024, 2021. https://www.mfin.gov.rs/upload/media/1Maq2a_6246eba00ce4e.pdf
- (3) The consequences of Covid-19 on the position sensitive groups and groups at risk causes, outcomes and recommendations, 2020. https://socijalnoukljucivanje.gov.rs/wp-content/uploads/2020/12/Posledice_Kovid-19_na_polozaj_osetljivih_grupa_i_grupa_u_riziku.pdf
- (4) 021. Serbia is expecting an epidemic of departures of healthcare workers, 2022. https://www.021.rs/story/Info/Srbija/295889/Cim-korona-prodje-Srbiju-ocekuje-epidemija-odlazaka-zdravstvenih-radnika.html
- (5) National Assembly. Law on the Budget of the Republic of Serbia, 2022. https://www.paragraf.rs/izmene_i_dopune/121122-zakon-o-izmenama-i-dopunama-zakona-o-budzetu-republike-srbije-za-2022-godinu.html
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- (7) Peterhof Consulting stakeholder online on 21st of February, 2023.
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