[Federal Register Volume 69, Number 89 (Friday, May 7, 2004)]
[Notices]
[Pages 25564-25566]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10417]


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DEPARTMENT OF COMMERCE

International Trade Administration


Healthcare Technologies Trade Mission

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice to announce Healthcare Technologies Trade Mission, the 
Czech Republic, Hungary, and the Slovak Republic, September 13-17, 
2004.

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SUMMARY: The United States Department of Commerce, International Trade 
Administration, U.S. Commercial Service, Office of Export Promotion 
Services, is organizing a Healthcare Technologies Trade Mission to the 
Czech Republic, Hungary, and the Slovak Republic, September 13-17, 
2004. The Trade Mission will target a broad range of sectors within the 
healthcare industry. The focus of the delegation will be to match 
participating U.S. companies with qualified agents, distributors, 
representatives, licensees, and joint venture partners in these 
markets, which are all slated to become European Union (E.U.) member 
countries in May 2004.

FOR FURTHER INFORMATION CONTACT: Office of Business Liaison; Room 5062; 
Department of Commerce; Washington, DC 20230; tel: (202) 482-1360; fax: 
(202) 482-4054.

SUPPLEMENTARY INFORMATION: Healthcare Technologies Trade Mission, the 
Czech Republic, Hungary, and the Slovak Republic, September 13-17, 
2004.

Mission Statement

I. Description of the Mission

    The United States Department of Commerce, International Trade 
Administration, U.S. Commercial Service, Office of Export Promotion 
Services, is organizing a Healthcare Technologies Trade Mission to the 
Czech Republic, Hungary, and the

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Slovak Republic, September 13-17, 2004. The Trade Mission will target a 
broad range of sectors within the healthcare industry. The focus of the 
delegation will be to match participating U.S. companies with qualified 
agents, distributors, representatives, licensees, and joint venture 
partners in these markets, which are all slated to become European 
Union (E.U.) member countries in May 2004.

II. Commercial Setting for the Mission

The Czech Republic
    The Czech Republic's medical devices market was valued at U.S. $450 
million in 2002. Domestic production accounts for only 35 percent, 
providing excellent opportunities for U.S. exporters of medical 
products. Germany accounts for 25 percent of the medical products 
imported into the Czech Republic, followed by the United States, which 
claims a 17 percent share. Syringes, needles, catheters, electrical 
diagnostic equipment, x-ray equipment, irradiators, and orthopedic aids 
account for the largest volume of medical products exported to the 
Czech Republic. Best current sales prospects include computer-processed 
visual systems, laser equipment, retinal tomography technology, 
defibrillators, implants, medicine infusion pumps, mammogram systems, 
endoscopes and laparoscopes, although there is demand in the Czech 
Republic for an even wider range of medical products.
    The home healthcare sector has been growing since its introduction 
to the Czech Republic in 1991 to reduce the demand for hospitalization 
and improve the quality of life of patients, usually the elderly. 
Further expansion of home healthcare is inevitable, given the high 
costs of hospital healthcare delivery and the shortage of financial 
resources in the Czech healthcare system. Since the Czech home 
healthcare sector is still in its infancy, there is potential for U.S. 
firms, especially those offering a wide variety of home care products, 
high-quality mobility equipment and other high demand products, 
including thermometers, blood pressure monitors, stethoscopes, 
glucometers, and aids for daily living.
Hungary
    The Hungarian medical market, estimated at U.S. $200 million, is 
very competitive and is dominated by imports, with about 85-90 percent 
of the market comprised of foreign products. U.S. medical products 
account for approximately 10-15 percent of this market and are very 
well received in Hungary due to their high quality. The Hungarian 
medical market is expected to grow five percent annually for the next 
three years. There are few barriers to entry for medical products into 
Hungary.
    Currently most purchases are by publicly owned institutions, but 
Hungary's new health care privatization law is designed to create more 
public-private healthcare facilities. Privatization of health services 
has proceeded most rapidly in the delivery of healthcare services by 
family physicians, and in the pharmaceutical and dentistry areas. 
Private sector development has moved relatively quickly for ambulatory 
and diagnostic imaging services, and has been negligible for outpatient 
and in-hospital care (areas where both costs and reimbursement 
mechanisms have thus far remained largely within the public sector). In 
2001 about 20 percent of the total expenditures of the National Health 
Insurance Fund (NHIF) went to private service providers.
    Medical products are marketed in Hungary through authorized 
distributors. Major foreign companies have their own offices while 
others operate through local distributors. Most distributors handle 
several brands of the same type of equipment and/or several lines of 
medical equipment. There are small firms, however, that represent only 
one or two foreign companies. Pricing is a key factor in selling a 
medical product in Hungary, as the market is very price sensitive. When 
purchasing medical equipment, customers also look for established 
companies with reliable after-sales service and customer support.
    Hospitals and other health care providers usually buy equipment 
directly from distributors.
The Slovak Republic
    In 2003 The Slovak Republic, more commonly known as Slovakia, 
imported U.S. $135 million of medical/healthcare products and 
equipment, an eight percent increase from 2002. This trend, combined 
with a $69 million World Bank loan for modernization of the Slovak 
medical sector, provides increased opportunities for U.S. medical/
healthcare exporters.
    The Slovak health care system consists of the National Health 
Service, including 141 home healthcare agencies and a large number of 
private medical facilities. The home healthcare sector in Slovakia was 
launched in 1996 and has been growing by 28 percent on an annual basis. 
Since home healthcare agencies in Slovakia provide better quality care 
and more comfort to patients at only a slightly higher cost than 
hospital-based care, and since healthcare delivery from theses agencies 
is also partially covered by health insurance, the Slovakian home 
healthcare sector is expected to continue growing. This trend bodes 
well for U.S. firms offering home care products, including general 
hygiene products and aids for daily living.
    In Slovakia, medical products are sold through sales 
representatives or through distributors. There are local distributors 
who represent only one or two foreign companies, but usually they 
market several brands of the same type of medical equipment/devices. 
Price, service, training and overall customer support are factors that 
are considered by Slovak consumers of medical products and services, 
with cost competitiveness and after-sales service being the key 
factors.

III. Goals for the Mission

    The Trade Mission's goal is to gain first-hand market information 
and provide access to key government officials and potential business 
partners for new-to-market, and/or new-to-export U.S. healthcare firms 
desiring to enter these three promising markets.

IV. Scenario for the Mission

    The trade mission will spend two days in Prague, one day in 
Bratislava, and two days in Budapest. At each stop, the U.S. Commercial 
Service will:
     Provide a market briefing highlighting opportunities in 
the healthcare technologies sector;
     Schedule one-on-one appointments with potential business 
partners for each participant;
     Arrange hospitality events to introduce participants to 
key business and industry officials (with the possible exception of 
Bratislava, the spin-off stop).
Tentative Timetable
    Sunday, September 12: Arrive in Prague, Czech Republic.
    Monday, September 13: Market Breakfast Briefing in Prague; Trade 
Mission Meetings; Evening Reception.
    Tuesday, September 14: Trade Mission Meetings in Prague; For 
companies participating in the spin-off to Slovakia, depart Prague for 
Bratislava by train.
    Wednesday, September 15: Market Breakfast Briefing in Bratislava; 
Trade Mission Meetings in Bratislava; Depart Bratislava for Budapest. 
Companies not participating in the spin-off to Bratislava can schedule 
their time as they wish but will be requested to arrive in Budapest by 
Wednesday evening.

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    Thursday, September 16: Market Breakfast Briefing in Budapest; 
Trade Mission Meetings in Budapest; Evening Reception.
    Friday, September 17: Trade Mission Meetings in Budapest; 
Conclusion of Trade Mission.

V. Criteria for Participant Selection

     Relevance of the company's business line to the mission 
scope and goals.
     Potential for business in the selected markets.
     Timeliness of the company's completed application, 
participation agreement, and payment of the mission participation fee.
     Provision of adequate information on the company's 
products and/or services and communication of the company's primary 
objectives to facilitate appropriate matching with potential business 
partners.
     Certification that the company's products and/or services 
are manufactured or produced in the United States or if manufactured/
produced outside of the United States, the product/service must be 
marketed under the name of a U.S. firm and have U.S. content 
representing at least 51 percent of the value of the finished good or 
service.
    The mission will be promoted through the following venues: Export 
Assistance Centers and the healthcare team; industry newsletters; the 
Federal Register; relevant trade publications; relevant trade 
associations; past Commerce trade mission participants; various in-
house and purchased industry lists, and on the Commerce Department 
trade missions calendar--http://www.ita.doc.gov/doctm/tmcal.html.
    Any partisan political activities of an applicant, including 
political contributions, will be entirely irrelevant to the selection 
process. The trade mission participation fee will be $2,500 for The 
Czech Republic and Hungary, and $500 for the optional spin-off to 
Slovakia. Participation fee does not include the cost of travel and 
lodging. Participation is open to the first 10 qualified U.S. 
companies. Recruitment will begin immediately and will close on June 
30, 2004. Applications received after that date will be considered only 
if space and scheduling constraints permit.
    Contact Information: Bill Kutson, Project Manager, U.S. Commercial 
Service, Export Promotion Services, U.S. Department of Commerce, Room 
2117, Washington, DC 20230. Tel: (202) 482-2839; fax: (202) 482-2718; 
e-mail: [email protected].

    Dated: April 27, 2004.
John Klingelhut,
Senior Advisor, Export Promotion Services.
[FR Doc. 04-10417 Filed 5-6-04; 8:45 am]
BILLING CODE 3510-DR-P