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A healthy system is a wealthy system - Doing Business | DOINGBUSINESS.RO

  |  08.11.2012

A healthy system is a wealthy system

A blunt outline of some critical aspects to be addressed in the healthcare system, stated by Pascal Prigent – GM GlaxoSmithKline (GSK) Romania

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Entire Europe and the whole world are faced with an ageing problem and financial difficulties but if we look at what other countries do, we can see that the trend in Europe is to increase investment in healthcare, given exactly the ageing of the population. The World Bank estimates that public expenditure on healthcare in the EU could almost double as a percentage of GDP from 8% now to 14% in 2030. Romania now invests only 3.8% of GDP in healthcare, so it is critically important to invest more. The under-investment has serious consequences: life expectancy in Romania is the lowest in Europe, infant mortality the highest and chronic diseases indicators tend to be below the European average. The issue is not only social, but also economic. Several studies have shown that investing in healthcare is actually beneficial for the economy. It’s not that you need to be wealthy in order to be healthy but rather that you have to be healthy if you want to create wealth.

One of the more obvious consequences of the lack of investment in healthcare is the Romanian patient access to the newest products. Currently, Romania is the only country in the European Union to impose a one year waiting period until a new drug can be evaluated in order to be included in the reimbursement system. This comes on top of the fact that the reimbursement list has not been fully updated since August 2008. For Romanian patient medical innovation stopped 4 years ago and we don’t have access to the same drugs as all our European neighbors. Obviously, there is a need to urgently increase the healthcare budget. In order to make this possible the system must be reformed and the financing has to be diversified.

The reform of the system has to focus on eliminating waste and improving operating efficiency. As far as financing is concerned, the idea of combining public and private funding is an interesting one, but the market needs to be made attractive for private investors. The claw-back tax can be part of the solution, but the form is not sustainable as the state cannot expect that the pharmaceutical industry alone will finance the system deficit. The entire pharmaceutical industry is now discussing with the authorities and it is critical to find a compromise and an acceptable version of the tax to avoid a system collapse.


There should be a balance between the private and state owned medical services. If only the private sector develops and state owned services stay behind, we might face the problem that only people who can afford private medical care services will benefit of proper care. This is why private hospitals have already started to sign agreements with CAS. We believe that a mixed system with collaboration between private and public financing makes sense but it will be important for the government to structure the market in a way that will be attractive to the private sector. The timeline implementation of the new healthcare law, facilitating access to the market for private insurance companies, is still unclear and highly dependent on the political agreements.

We all agree that there is a need to change the current Romanian healthcare system, but there is no need for reinventing the wheel. There are best practices across Europe that could be applied in Romania as well. We think that the new law should aim to be sustainable in the first place and also to provide health and security for the citizens who need them most. Currently, with 3.7 million illegal workers and half of the private sector workers paid only the minimum salary, this is not sustainable. Therefore, increase tax collection, encourage legal employment by simplifying labor laws could be ways to bring more money into the system. As mentioned before, the waste in the system should also be reduced and operating efficiency improved.


The needs are high and it is urgent to do something. Of course the amount of money is not unlimited. This is why we support short term option of the authorities, to limit the basic package of benefits of patients by excluding from the reimbursement system drugs that are most affordable, but ensuring that patients have access to the most expensive ones without long waiting periods. In the long term, the basic package of benefits would have to be redefined in order to be financially sustainable yet allow an appropriate level of care.

We also appreciated that the authorities opened a public debate on the law, but we think that it’s better if you include the key stakeholders at the beginning of the process, when the law is being developed, not at the end because at the end, when everything is already written, it’s very difficult to make changes as we are talking about a complex process.


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