Feature

A Silent Equipment Crisis Hits Iranian Hospitals

Iran’s healthcare system is facing a growing challenge that receives far less attention than drug shortages or hospital financing: the gradual deterioration of medical equipment. As hospitals struggle with rising costs, limited financial resources and the impact of currency volatility, the replacement and modernization of critical diagnostic and treatment devices have slowed considerably. Industry experts warn that the continued reliance on aging equipment is increasingly affecting the quality, efficiency and accuracy of healthcare services.

According to estimates from health-economy specialists, Iran’s 1,073 active hospitals collectively operate at least $10 billion worth of capital medical equipment. The average age of these assets is estimated at around five years. Maintaining such a large inventory typically requires annual spending equivalent to roughly 5% of equipment value on servicing, repairs and after-sales support. In practice, however, less than 0.5% of hospital budgets is allocated to maintenance, creating a substantial funding gap that accelerates equipment deterioration and reduces operational accuracy.

The problem is particularly severe in imaging and laboratory equipment such as MRI, CT scan and radiology systems, which depend heavily on imported parts and specialized technical services. Any disruption in the supply of components directly affects patient care. Rising repair costs have added further pressure, with some hospitals reporting that repairing a device now costs as much as purchasing the same equipment several years ago.

Official figures also highlight Iran’s continued dependence on imported medical equipment. The head of the Food and Drug Administration announced in Ordibehesht 1405 (April–May 2026) that medical equipment imports continue to increase despite foreign exchange constraints, while the declining share of healthcare in gross domestic product has complicated procurement efforts. Earlier, in Mordad 1404 (July–August 2025), the FDA’s director general for medical equipment stated that more than $110 million is spent annually on importing certain categories of medical devices.

Major Weakness

More recently, Ali Alizadeh, director general of medical equipment and supplies at the FDA, estimated the country’s medical equipment market at roughly $5 billion, including both subsidized and non-subsidized foreign exchange allocations. He noted that the sector received between $1.7 billion and $1.8 billion in foreign currency last year, while more than $2.1 billion worth of medical equipment was cleared through customs. Alizadeh also estimated the market’s rial value at about 430 trillion tomans (approximately $2.53 billion). He identified the absence of comprehensive statistical databases and transparent market data as one of the sector’s major structural weaknesses.

Industry representatives argue that equipment deterioration has become one of the most significant hidden costs facing Iran’s healthcare system. The issue not only increases operational expenses but may also undermine diagnostic accuracy and treatment outcomes.

Speaking to Donya-e-Eqtesad newspaper, Abolfath Sanei, vice chairman of the Health Economy Commission of the Tehran Chamber of Commerce, said Iran’s hospitals contain more than $10 billion worth of medical capital assets, including roughly $7 billion in university-affiliated facilities.

“With an average equipment lifespan of five years, hospitals should spend around 5% of asset value annually on maintenance and repairs,” he said. “Yet maintenance budgets account for less than half a percent of hospital spending. As a result, equipment that should remain operational for another five years often becomes heavily depreciated within two to three years.”

Sanei warned that declining equipment accuracy creates economic and medical consequences simultaneously. “When devices fail to deliver sufficient precision, costs rise because of repeated procedures and inefficiencies, while patients may face delayed diagnoses and delayed treatment,” he said.

Immediate Challenge

Liquidity shortages remain the sector’s most immediate challenge. According to Sanei, delayed reimbursement and insufficient funding have turned after-sales service operations into loss-making activities for many suppliers. This, in turn, increases hidden costs for hospitals.

He estimated that between 10% and 20% of medical equipment nationwide has become obsolete, depending on device type. In some hospitals, equipment older than 10 years remains in operation despite a standard lifespan of roughly a decade. Technological advances have shortened replacement cycles even further, making upgrades necessary after only four to five years in certain categories.

Import restrictions, sanctions, administrative inefficiencies and outdated regulations have compounded the problem. Sanei argued that many current import rules were designed for normal economic conditions and no longer reflect the realities of sanctions and economic pressure. Delays in payments, order registration, shipping and customs clearance have significantly extended procurement timelines. Equipment and spare parts that should be delivered within standard timeframes often require nearly three times longer to reach healthcare facilities.

The consequences extend beyond hospital finances. As equipment ages, spare parts become harder to obtain, manufacturers discontinue support and hospitals increasingly rely on non-original components that can compromise performance. Healthcare experts warn that if current trends persist, equipment deterioration could evolve from a technical challenge into a major infrastructure risk for Iran’s healthcare system, ultimately affecting treatment quality, patient safety and long-term public health outcomes.