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Summary: Israel

The Israeli healthcare system is fairly inclusive and accessible. In response to rising health costs and an aging population, a National Health Insurance Law was established in 1995, reorganising the Ministry of Health and withdrawing health provision from the government.

Further privatisations are likely. In particular, in an effort to reduce operating deficits and increase competition, Israeli authorities plan to turn the state-run hospital system into decentralised financially self-reliant units that will compete with health funds.

Domestic healthcare demand is expected to remain strong, but increased privatisation could bring down prices as greater outsourcing will be encouraged and constraints on patient’s access to care might be imposed in the process.

Israel has a large pharmaceutical industry and is home to the largest generic manufacturer in the world. Due to the relatively small domestic market size and the ongoing state conflict with the direct neighbourhood, the industry has naturally focused on export markets, particularly the United States and the European Union.