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Last update: October 2023
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Learn moreCMS lawyers can provide future-facing advice for your business across a variety of specialisms and industries, worldwide.
Apart from offering expert legal consultancy for local jurisdictions, CMS partners up with you to effectively navigate the complexities of global business and legal environments.
Our CMS Expert Guides provide you with in-depth legal research and insights.
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Learn moreFor software manufacturers that are interacting with the healthcare system, it is important to know if the software developed qualifies as a medical device. Software that is considered a medical device can be placed on the market or put into service only if it complies with the rules applicable to medical devices.
However, not all software used within healthcare is qualified as a medical device. This is why understanding the rules on the qualification of medical devices is important.
As Romania is a Member State of the European Union, Regulation (EU) 2017/745 of the European Parliament and of the Council of 5 April 2017 on medical devices, amending Directive 2001/83/EC, Regulation (EC) No 178/2002 and Regulation (EC) No 1223/2009 and repealing Council Directives 90/385/EEC and 93/42/EEC (“MDR”) is directly applicable in Romania.
The Romanian Government adopted, by Emergency Ordinance no. 46/2021 (“GEO 46/2021”), the measures establishing a framework for the implementation of the MDR.
Under the MDR, “medical device means any instrument, apparatus, appliance, software, implant, reagent, material or other article intended by the manufacturer to be used, alone or in combination, for human beings for one or more of the following specific medical purposes:
The following products shall also be deemed to be medical devices:
Therefore, it can be observed that software must have a medical purpose on its own to be qualified as a medical device software. To this aim, the intended purpose as described by the manufacturer of the software is relevant.
If the software does not fall within the definition of medical devices, it might be intended as an accessory for a medical device or an in vitro diagnostic medical device. In such cases, the respective software still falls under the scope of MDR or, respectively, the Regulation (EU) 2017/746 of the European Parliament and of the Council of 5 April 2017 on in vitro diagnostic medical devices and repealing Directive 98/79/EC and Commission Decision 2010/227/EU (“IVDR”).
According to the MDR, an “‘accessory for a medical device’ means an article which, whilst not being itself a medical device, is intended by its manufacturer to be used together with one or several particular medical device(s) to specifically enable the medical device(s) to be used in accordance with its/their intended purpose(s) or to specifically and directly assist the medical functionality of the medical device(s) in terms of its/their intended purpose(s);”.
Under the IVDR, also directly applicable in Romania, “in vitro diagnostic medical device means any medical device which is a reagent, reagent product, calibrator, control material, kit, instrument, apparatus, piece of equipment, software or system, whether used alone or in combination, intended by the manufacturer to be used in vitro for the examination of specimens, including blood and tissue donations, derived from the human body, solely or principally for the purpose of providing information on one or more of the following:
There are also implementing and classification rules in the MDR that indicate certain software that is considered a medical device. As such, it is considered a medical device:
For cases where it is hard to draw a line between mere software and medical devices, there is a Guidance on Qualification and Classification of Software in Regulation (EU) 2017/745 – MDR and Regulation (EU) 2017/746 – IVDR („Software Qualification Guidelines“), endorsed by the Medical Device Coordination Group (MDCG) within the European Union, but which is not legally binding. However, it sets out orientations and examples to help qualify the software as a medical device.
For example, according to the Software Qualification Guidelines:
Other examples of qualification of software as a medical device can be found in the Manual on Borderline and Classification in the Community Regulatory Framework For Medical Devices (europa.eu).
According to the Software Qualification Guidelines, the following decision steps should be taken for qualification of software as a medical device:
The primary legislation in Romania regulating the processing of personal data is the EU General Data Protection Regulation 2016/679 (“GDPR”) and Law 190/2018 regarding the measures for implementation of GDPR. In addition, the Romanian Data Protection Authority for Personal Data Processing (“RDPA”) may issue secondary legislation, for instance, RDPA Decision no. 174/2018 on data processing operations which require mandatory data privacy impact assessments. Special data privacy requirements may also be found in the healthcare regulations.
In what regards DTx, processing of health data is particularly noteworthy. Such data has a special regime under the GDPR (is deemed a special categories of data) and generally triggers more complex compliance requirements.
Below we emphasize the most significant aspects that should be considered to ensure the data privacy compliance:
In addition to the above requirements which result from GDPR implementation, the national law provides additional specific requirements for processing of personal data (note that the below may not be a complete list of requirements, thus a further analysis would be required based on the processing specifics), for instance:
When placing a medical software or DTx product on the market in Romania, companies need to consider and comply with several additional legal requirements, including:
According to GO 46/2021, advertising for medical devices can be made to the general public or to persons qualified to recommend or distribute medical devices.
Advertising of a medical device must:
GO 46/2021 further provides that:
Any advertising material aimed at the general public must:
Advertising of medical devices to the general public must not contain any material which:
Advertising for medical devices intended for healthcare professionals must contain the following information:
The documentation on the advertising of a medical device to the general public must be submitted by the manufacturer, importer or distributor of the medical device to the ANMDMR for approval and disseminated only after obtaining the advertising visa.
The ANMDMR is the competent authority for the assessment, notification and approval of advertising material, except for those intended for health professionals when they do not belong to the category of medical devices with a high health risk for the population.
The advertising aimed at healthcare professionals of a medical device that belongs to the category of medical devices presenting a high risk, must be notified by the manufacturer, importer or distributor of the medical device, to the ANMDMR, in advance, as a matter of urgency.
In order to issue the advertising visa, the applicant:
Failure to comply with the provisions on advertising of medical devices is considered a misdemeanor.
Advertising of medical devices to health professionals can include:
The legal framework does not provide more guidance on the use of economic benefits/incentives as promotional tool. Currently there is a draft Order approving the Methodological Norms regarding advertising for medical devices, but it hasn’t entered into force yet. It provides for relevant rules on the advertising of medical devices, including conditions in which advertising is allowed.
Where the law in force does not set all parameters of a particular relationship, the relevant market practice should be observed. In this respect, the main codes applicable for medical devices are the MedTech Code (on a European level) and the RASCI Code (on a national level).
The RASCI Code should be taken into account as practice market and as guidelines for implementing the legislation in force at a national level. Amongst others, it provides for rules in connection with:
Manufacturers should bear in mind that some promotional activities may be considered sponsorship/donations/grants, which are subject to particular rules under Romanian legislation, such as:
Furthermore, the legislation in force provides for certain limitations in the interactions between authorities/hospitals/institutions and suppliers. According to Law 95/2006:
Providers of medical devices can partner with various entities on a contractual basis.
Where the law does not prohibit certain relationships, it can be construed that these are permitted.
The law provides for cases where the interaction of medical devices manufacturers is prohibited. These cases should be taken into account. For example, in case of public procurement won by the company, the successful tenderer with whom the contracting authority has concluded the public procurement contract shall not be entitled to engage or enter into any other arrangements for the provision of services, directly or indirectly, for the purpose of performing the public procurement contract, with natural or legal persons who have been involved in the process of verifying/evaluating requests to participate/tenders submitted in the framework of an award procedure or employees/former employees of the contracting authority or of the procurement service provider involved in the award procedure with whom the contracting authority/procurement service provider involved in the award procedure has terminated contractual relations subsequent to the award of the procurement contract, for a period of at least 12 months after the conclusion of the contract, under penalty of termination or automatic termination of the contract in question.
Also, where the special law does not regulate, the general rules of civil law will be applicable.
Depending on the type of services, contracts may need to fulfill certain formal requirements (written form, notarized form etc).
In all cases, manufacturers should pay attention to liability sharing provisions. In some cases, manufacturers remain liable under the law, even if the contract provides otherwise.
Manufacturers can trade their devices directly to end users or through distributors.
Note that, under the MDR, where the manufacturer of a device is not established in a Member State, the device may only be placed on the Union market if the manufacturer designates a sole authorised representative.
According to the MD Methodological Norms, the activities of import, distribution, installation and maintenance of medical devices must be authorized by ANMDMR.
The legislation in force does not provide for particular ways to distribute medical devices.
Generally, contracts for the purchase of medical equipment and appliances in the medical devices category are awarded, as competitive open tendering procedures.
Public procurement is meticulously regulated in Romania mainly by Law no. 98/2016 on public procurement and by Law no. 99/2016 on sectoral procurement.
Some of the medical equipment/devices used by public hospitals are entrusted by companies through contracts for donation/free use/sponsorship agreements. As mentioned in section 3 b) above, sponsorship/donations/grants are subject to particular rules under Romanian legislation.
Also, it should be noted that the Competition Council issued in 2020 a Report on healthcare market services and related activities and related activities, in which it described several competition law concerns regarding the procurement of medical devices and recommended some ways forward.
For example, it recommended the Ministry of Health to regulate the modalities of entrusting medical equipment/devices through free rental agreements, deeds of donation or deeds of free of charge/sponsoring or similar forms to public hospitals for the purposes of applying clear criteria for the selection of the supplier and limiting the period of entrustment.
On the same matter, the Competition Council also issued a Study report on the lock-in effect in sensitive sectors in procurement public procurement, it and medical equipment/devices. It aimed to analyse the long-term dependence of contracting authorities on a particular supplier/distributor. The dependency of contracting authorities can be defined as a obligation of contracting authorities to use the services of a single supplier for the purchase of products/services in addition to those they already own.
The analysis of the captive effect focused on two economic sectors likely to be affected more affected by this phenomenon: the IT sector (in particular the case of specific software applications, developed on demand) and the medical equipment/devices and related services sector (consumables, spare parts and maintenance services).
Therefore, manufacturers should consider competition rules, which play an important rule on the distribution of medical devices to contracting authorities.
Also, it should be noted that there is the possibility in certain cases that certain medical devices to enter the national reimbursement program in order for people to benefit from this measure.
When exploring options to generate revenue from a DTx product in Romania, there are various avenues to consider:
When exploring monetization through sales to private parties or payors in Romania, the following considerations should be taken into account:
When exploring monetization through sales to public entities or the public healthcare system in Romania, companies should focus on the following: (i) understanding the Romanian legal framework on reimbursement; and (ii) understanding the contractual agreements concluded with public entities (the contracts are generally standard and non-negotiable and thus, companies must pay particular attention to the terms and conditions of reimbursement, usage, and other relevant aspects).
As context, it is worth noting that in the case of medical devices, their prices are not strictly regulated by law. However, the reimbursement value of medical devices is approved by the Ministry of Health and/or the CNAS. Patients insured under the national health insurance system can obtain the respective medical devices from pharmacies that have reimbursement agreements with health insurance houses. They may receive them either free of charge or by making a co-payment, based on the value established by the Ministry of Health and/or the CNAS. CNAS and other public health insurance houses subordinate to it cover the reimbursed value by providing reimbursement amounts to the pharmacies that distribute the reimbursed medical devices, pursuant to special supply agreements.
When it comes to potential pitfalls, these may include delays in contract negotiations, changes in reimbursement policies, or administrative hurdles. Maintaining open communication, staying updated on regulatory changes, and seeking legal guidance can help mitigate these risks and ensure a smooth monetization process.
Last update: October 2023
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