Israel has one of the oldest and most centralized medical cannabis programs in the world, running through the country’s Ministry of Health rather than a patchwork of state rules like in the U.S. With patient numbers hitting a record high in 2026, it’s worth looking at how the Israeli model works, and what parts of it the fragmented U.S. market might actually learn from.
The Numbers Behind Israel’s Program
- Licensed medical cannabis patients hit roughly 143,900 as of May 2026, a record high for the program.
- Israel’s medical cannabis market was projected at around $372 million in 2025 revenue.
- Domestic growers supply roughly two-thirds of the market, with Canada as the country’s main import source for the rest.
- Chronic non-cancer pain accounts for about 63% of patient approvals, the largest single category.
- PTSD-related approvals have climbed sharply, up around 89% in recent reporting.
These figures come from market tracking data on the Israeli cannabis sector, alongside Israel’s own Ministry of Health guidance on medical cannabis treatment.
How the Israeli System Actually Works
Unlike most U.S. states, where medical cannabis programs run through a state health department separate from the rest of the healthcare system, Israel folds medical cannabis directly into its national healthcare structure.
- Physician referral. A patient’s treating physician must refer them for medical cannabis, typically after other treatments haven’t worked.
- Ministry of Health or HMO approval. Depending on the condition, approval runs either through direct Ministry of Health licensing or through the patient’s health maintenance organization (HMO).
- Licensed pharmacy dispensing. Patients pick up product through licensed pharmacies rather than freestanding dispensaries in most cases.
- Ongoing physician oversight. Treatment is reviewed periodically rather than being an open-ended, one-time approval.
Exports: The Next Phase
Israel has also pushed to become a medical cannabis exporter, not just a domestic producer. Industry leaders see this as a major growth avenue for Israeli cannabis companies looking beyond their small domestic market.
“The advancement of the export market for medical cannabis products from Israel is a very significant development for IMC’s international strategy.”
What the U.S. Industry Can Learn
- Centralized oversight reduces confusion. A single national framework, rather than 38+ different state programs, means patients and physicians deal with one consistent set of rules.
- Physician-led approval builds legitimacy. Routing approvals through actual treating physicians, rather than a separate cannabis-specific doctor visit, keeps cannabis inside mainstream medical care rather than siloed off from it.
- Pharmacy distribution normalizes the product. Dispensing through licensed pharmacies, similar to how licensed dispensaries operate in states like New York, but integrated with the broader healthcare system, is a model few U.S. states have tried.
- Export infrastructure takes years to build. Israel’s export push didn’t happen overnight, and U.S. companies eyeing international markets should expect a similarly long runway.
Frequently Asked Questions
How many people use medical cannabis in Israel?
Around 143,900 patients were licensed as of May 2026, according to industry market tracking, the highest figure on record for the program.
Does Israel export medical cannabis?
Yes. Israeli regulators have approved export pathways for medical cannabis products, and domestic companies have highlighted export growth as a key part of their international strategy.
Is Israel’s medical cannabis program similar to U.S. state programs?
Not really. Israel runs medical cannabis through its national Ministry of Health and HMO system, integrated with mainstream healthcare, while U.S. programs are set state by state with their own separate registries, dispensaries, and rules.
Daniel Levinson is a cannabis industry business development and M&A consultant with roughly a decade of experience working with cannabis brands, startups, and operators, including in regulated medical cannabis markets such as Israel. He writes for Just Weed Strains on cannabis business, legal, and dispensary topics, drawing on his industry and deal-side experience. Connect with him on LinkedIn.