French Healthcare Spending Seen Slowing

Health fund groups in France have reported that the country's healthcare spending growth slowed to 3.5% in January through April 2005. With weak growth in reimbursement, the statistics are likely to please the government, which has agreed on a growth target of just 3.2% for the current financial year.

France's healthcare spending was 3.8% higher year-on-year in the first three months of 2005, prompting fears that the government would be forced to intervene more strongly to control the rate of increase. Government ministers have reassured the National Assembly that the health service's funding deficit will be cut to EUR8bn (US$9.8bn) this year.

Whether the rate of growth in healthcare spending, and even slower growth in general practice prescribing, will be welcomed by the pharmaceutical industry is another matter. France's drug market is expected to grow by as little as 2% per year over the next five years, likely reaching some US$36.1bn in 2009.