Hailey Tran
Iran has a heavily regulated healthcare market, with the Ministry of Health and Medical Education (MOHME) operating public hospitals and overseeing the provision of healthcare services, medical insurance, medical education, and the supervision and regulation of the healthcare system. According to various sources, there are around 570 public hospitals and 337 private hospitals in Iran, totaling 907 hospitals. However, a census conducted by the Statistical Centre of Iran in 2003 reported a lower figure of 730 medical establishments, including hospitals and clinics. This discrepancy may be due to the dynamic nature of the hospital market, which is projected to grow by 3.40% from 2024 to 2029. The Iranian healthcare sector faces challenges such as medication shortages, high medical expenses, and a brain drain of medical professionals, but it has succeeded in training the necessary human resources to meet its needs.
| Characteristics | Values |
|---|---|
| Number of Hospitals | 570 public hospitals and 337 private hospitals, totalling 907 hospitals |
| Number of Hospital Beds | 110,797 |
| Density of Hospital Beds | 1.5 beds per 1,000 people |
| Average Revenue per Hospital Bed | N/A |
| Average Number of Physicians per 1,000 People | 0.5-1.1 physicians |
| Percentage of Physicians that are Women | 46% are women |
| Insurance Coverage | 90% of the population has health insurance |
| Public Hospital Cost Coverage | 90% covered by insurance |
| Market Volume | Estimated to be US$41.03bn in 2029 |
| Market Growth | Estimated to grow by 3.40% between 2024 and 2029 |
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What You'll Learn
Iran has 570 public hospitals and 337 private hospitals
Iran has a total of 907 hospitals, with 570 being public hospitals and 337 being private hospitals. The Iranian healthcare market is heavily regulated by the government, which has a significant impact on the hospitals market. The Ministry of Health and Medical Education (MOHME) operates public hospitals, both general and specialty hospitals, throughout the country. Public hospitals are typically under the direct management of universities. Private hospitals, on the other hand, must obtain a license from the MOHME before they can operate, and there are strict regulations governing the pricing of medical services.
In Iran, there is a notable disparity in healthcare access between urban and rural areas. According to the World Health Organization (WHO), in 2000, 94% of the population could access local health services, with access ranging from 86% in rural areas to 100% in urban areas. This disparity may be attributed to the shortage of qualified medical personnel in rural areas. To address this issue, each village or group of villages in rural areas has established a "health house" staffed by community health workers trained in preventive healthcare methods such as nutrition, family planning, taking blood pressure, prenatal care, immunization, and monitoring environmental conditions like water quality.
The Iranian healthcare system faces several challenges, including medication shortages, soaring medical treatment costs, and a significant exodus of medical professionals. These issues have led to difficulties for low-income families in obtaining essential medications and have resulted in some individuals resorting to dangerous self-treatment practices. Additionally, the traditional view of treatment-oriented policies in the health services network has caused hospitals to focus primarily on disease and treatment, neglecting the quality of life of patients after discharge.
To address these challenges, Iran has made efforts to promote health-enhancing and disease-prevention strategies. Health promoting hospitals (HPHs) aim to go beyond diagnosis and treatment by focusing on health enhancement and disease prevention. However, despite the large number of hospitals in Iran, the number of studies conducted on HPH implementation is relatively small, indicating a need for further research and policy changes to improve the health of patients, employees, and society as a whole.
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There are 488 government-funded hospitals
Iran has a total of 488 government-funded hospitals, according to a 2003 census by the Statistical Centre of Iran. These hospitals are run by the Ministry of Health and Medical Education (MOHME), which operates public hospitals, including general and specialty hospitals, throughout the country. The MOHME is responsible for providing healthcare services, medical insurance, medical education, supervision, and regulation of the healthcare system. It also plays a role in policymaking, pharmaceutical production and distribution, and research and development.
The Iranian healthcare market is heavily regulated by the government, which has encouraged private investment in the sector. As a result, there are also private hospitals in Iran, which must obtain a license from the MOHME to operate. These private hospitals typically cater to well-to-do individuals who can afford their high fees.
The healthcare system in Iran faces several challenges. There is a traditional view of treatment-oriented policy, causing hospitals to focus on disease and treatment rather than the patient's life or quality of life after leaving the hospital. Additionally, Iran has experienced a severe medical crisis since 2020, including medication shortages, soaring medical prices, and a mass exodus of medical professionals.
To address these issues, Iran has implemented comprehensive quality management in hospitals, with the participation of all employees. The concept of Health Promoting Hospitals (HPHs) has been introduced, aiming to enhance health and prevent diseases alongside routine diagnosis and treatment services. However, despite the large number of hospitals in Iran, the number of studies conducted on HPH implementation is relatively small, indicating a need for further research.
Overall, Iran's 488 government-funded hospitals are an integral part of the country's healthcare system, and efforts are being made to improve the quality of healthcare services provided to the population.
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The Iranian healthcare market is heavily regulated by the government
Iran's healthcare market is heavily influenced by government regulation. The country's healthcare system is based on three pillars: the public-governmental system, the private sector, and NGOs. The Ministry of Health and Medical Education (MOHME) operates public hospitals and is responsible for the provision of healthcare services, medical insurance, medical education, policymaking, supervision and regulation of the healthcare system, production and distribution of pharmaceuticals, and research and development.
The Iranian government has a significant impact on the hospitals market. Private hospitals must obtain a license from the MOHME before operating, and there are strict regulations governing the pricing of medical services. There is also a focus on the adoption of new medical technologies and equipment, which has improved patient outcomes and the level of care.
The government has prioritized universal health coverage, with over 90% of the population having some form of health insurance. The public-governmental system includes the Social Security Organization, which insures employed citizens in urban areas and their dependents, and the Medical Service Insurance Organization, which covers government employees, students, and rural residents. The private sector includes insurance entities like the Iran Health Insurance Organization and the Armed Forces Insurance Organization, which are widespread but lack a comprehensive database, hindering oversight and leading to unethical behaviour and corrupt practices.
The regulatory environment in Iran is strict, particularly regarding the import of drugs and pharmaceuticals. The government imposes a 90% tariff on drug imports and heavily subsidizes the pharmaceutical industry to increase affordability. However, this has also led to overconsumption, overprescription, and misuse of drugs. The government's decision to encourage private investment in the healthcare sector and the growing demand for private healthcare services have contributed to the market's heavy regulation.
Iran's healthcare market is expected to grow, with a projected increase in market volume and spending. The country faces the challenge of meeting the demand for various public services, including healthcare, due to its young and growing population.
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There is a severe shortage of medication in Iran
Iran has a total of 730 medical establishments, including hospitals and clinics, according to the last census conducted by the Statistical Centre of Iran in 2003. Of these, 488 are directly affiliated with and run by the Ministry of Health and Medical Education (MOHME). Despite having a significant number of medical facilities, Iran faces a severe shortage of medication, causing a public health crisis.
The country's medication shortage has multiple causes, including economic sanctions, a lack of raw materials, and a weak currency. Since the 1979 U.S. Embassy hostage crisis in Tehran, the United States, the European Union, and the United Nations Security Council have imposed various sanctions on Iran. While these sanctions primarily target Iran's nuclear proliferation activities, they have had detrimental effects on public health, creating vital domestic shortages of life-saving medicines. This has resulted in limited treatment access for approximately 6 million Iranian patients with a range of diseases.
Iran's pharmaceutical industry relies on imported raw materials, and economic sanctions have disrupted the supply of these essential inputs. The country's weak currency has further exacerbated the problem, making it difficult for Iran to purchase medicines and raw materials from foreign suppliers. The free-market rate for Iran's currency is nearly one million rials to one U.S. dollar, making imports extremely expensive.
The medication shortage in Iran has severe consequences, including a surge in counterfeit drugs and a thriving black market. Cancer patients, in particular, face significant challenges as medications become increasingly expensive and scarce, even disappearing from pharmacies and the underground market. The situation is even worse for patients with rare conditions like hemophilia, MPS, and SMA, who often rely on imported medications that are stuck in customs for extended periods.
The Iranian government has attempted to address the medication shortage by phasing out an unrealistic official exchange rate of 42,000 rials to one U.S. dollar and increasing it to a still-subsidized rate of 285,000 rials to the dollar. However, this has resulted in price increases for most medicines, with some drugs becoming up to 300 times more expensive. The government has also announced plans to raise the price cap on certain drugs to incentivize production, but this has led to immediate price hikes.
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More than 90% of the population has health insurance
Iran's healthcare system is primarily insurance-based, with more than 90% of the population covered by health insurance. The Iranian healthcare market is heavily regulated by the government, which has a significant impact on the hospitals market. The Ministry of Health and Medical Education (MOHME) operates public hospitals and is in charge of providing healthcare services, medical insurance, medical education, and the supervision and regulation of the healthcare system in the country. MOHME also handles policymaking, the production and distribution of pharmaceuticals, and research and development.
The Social Security Organization (SSO) insures employed citizens in urban areas and their dependents, excluding government workers. It also covers all salaried and wage workers, as well as self-employed persons who voluntarily join. The SSO also insures many old-age pensioners. The Medical Service Insurance Organization (MSIO) covers government employees, students, and inhabitants of rural areas. MSIO acts as both a relief foundation and an insurance firm. Additionally, the Imam Khomeini Relief Foundation insures the poor who are not covered by other insurance schemes, while the Military Personnel Insurance Organization provides health insurance to members of the armed forces. Beyond these schemes, there are a number of private and semi-public insurance programs that cater to more affluent members of society.
According to the World Health Organization (WHO), as of 2000, Iran ranked 58th in healthcare and 93rd in health system performance. In 2016, Bloomberg News ranked Iran 30th in healthcare efficiency, ahead of the United States and Brazil. The report showed that life expectancy in Iran is 75.5 years, and per capita spending on healthcare is $346. The health status of Iranians has improved over the last two decades, with significant reductions in child and maternal mortality rates, and a remarkable rise in life expectancy at birth.
Iran has successfully trained and educated the necessary human resources for its health system. In 2004, there were an estimated 0.5-1.1 physicians per 1,000 people, with about 46% of physicians being women. However, Iran's healthcare system faces challenges, including a severe medical crisis that began in 2020, with medication shortages, soaring medical treatment costs, and an exodus of medical professionals. The government has heavily subsidized pharmaceutical production and importation to increase affordability, but this has led to overconsumption, overprescription, and misuse of drugs.
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Frequently asked questions
According to a 2003 census, there are 730 medical establishments in Iran, including hospitals and clinics. There are 488 government-funded hospitals, 120 private hospitals, and the rest are run by other organisations.
The healthcare system in Iran is heavily regulated by the government. The Ministry of Health and Medical Education (MOHME) operates public hospitals and is in charge of providing healthcare services, medical insurance, education, and supervision. The Iranian government has made universal health coverage a priority, and over 90% of the population has health insurance.
The Iranian healthcare system faces several challenges, including a severe medical crisis since 2020, with medication shortages, high medical costs, and a mass exodus of medical professionals. There is also a shortage of qualified medical personnel in rural areas, and the system has been criticised for focusing on treatment rather than health promotion and disease prevention.
