Welcome to the first post of a few more to come about the rewards and challenges when entering the German market as a med tech company! If you're with a medical technology company eyeing Europe's largest healthcare market, this series might be a good read.

Germany offers huge opportunities - with its aging population, strong economy, and commitment to healthcare innovation. But let's be honest - entering this market will be a very German experience. And I mean that in a positive but also slightly negative way. There are unique challenges that can make you ask yourself more than once if it is worth it.

In this introductory post, I will provide a quick tour through the main obstacles you'll face. Then in upcoming articles, I will offer a more detailed look at individual aspects.

My name is Manuel Paul, and together with mmehr.eu I advise MedTech companies that want to enter the German market. I honestly hope that I can interest you in my home country. We need innovative solutions to satisfy our rapidly growing healthcare needs while managing our immense healthcare budget. Hopefully, your product will be part of the solution.

Rules and Regulation - German style

First up: regulations. Germany loves rules, and healthcare is no exception! You'll need to navigate EU MDR compliance and Germany-specific requirements, partly depending on the reimbursement pathway that you choose. It's maybe a bit like solving a 1000 parts puzzle of a blue cloudless sky. It is possible with determination and patience but you need to know why you are doing it to not loose motivation and focus. The good news is that there is no hidden fine print. Read, understand and follow the rules and you already achieve an important first step: Compliance and trustworthiness.

Cracking the Reimbursement Code

Germany's dual public-private insurance system is impressively well funded but complicated. Getting your product approved for reimbursement involves multiple stakeholders. Understanding how pricing works here and what needs the stakeholders have is crucial. The good news is that, depending on your product, you have a huge amount of potential business partners and possibly more than one reimbursement pathway.

Cultural Dos and Don'ts

Business in Germany has its own rhythm and rules. Direct communication, punctuality, and thorough preparation are valued. And while many Germans speak excellent English, having German-language materials shows you're serious about the market. And not just that: It might be that your material has to be passed on through the hierarchy to get final approval for the sale. One not-so-good English speaker in that chain and you are out. Also in a conference call, especially in bigger rounds, some German partners might not be comfortable speaking English. In some setting - for example when reaching out to individual outpatient clinics - a call or email in English will be automatically dismissed as spam, leaving you to wander why your beautifully crafted campaign that worked in the UK does not create a single lead in Germany.

Facing the Competition

Germany has a robust ecosystem of local and international med tech players. Standing out requires understanding who's already there and what gaps exist. In most areas there is no FAANG - like oligopoly. Even if your niche might already be occupied by a competitor, there is usually room for at least one more. In some areas, change is difficult to achieve. Some software products are still sold and kept in use despite an NPS of nearly -90. Look at it that way: German customers are usually very loyal. Once they are on board you are very likely to have a new long term customer.

The Digital Health Revolution

Germany's Digital Healthcare Act created exciting pathways for digital health solutions. The DiGA Fast-Track process can get your digital therapies prescribed and reimbursed - but it comes with strict requirements and has proven to be difficult to navigate with some decisions by public bodies ending whole companies because of a sudden lack of reimbursement.

Making It Local

It's not enough to simply translate your materials into German. Products often need adaptation to meet local preferences and standards. Doing this properly gives you a valuable advantage over your competitors.

Smart Entry Strategies

Should you partner with distributors? Open a local office? Target specific regional healthcare clusters? Germany is a federal republic consisting of culturally different federal states. Bavaria and Hamburg are different. Metropolitan areas and vast rural landscapes have their individual needs and challenges. Plan wisely before randomly knocking on doors and doing the odd sale here and there but without real traction.

Looking Ahead

The German healthcare landscape continues to evolve. We'll explore emerging opportunities, upcoming regulatory changes, and where the market is heading.

Your German Market Journey

Breaking into the German med tech market requires preparation, patience, and persistence. But with the right approach, the rewards can be substantial.

Have specific questions about entering the German market? Put them in the comments below, and I will try to address them!

Want to get to know what we offer? Get in touch!

Until next time - Bis zum nächsten Mal!