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It's all about the money - Doing Business | DOINGBUSINESS.RO

  |  12.11.2012

It's all about the money

Irrespective of how one calls reform, it comes down to seeking to attract more overall funding in to a, currently, underfunded system

With the state being unable to provide all of the financial requirements to achieve this, politicians need to consider how the private funding in to paying for healthcare can be further stimulated.

A further consequence of this is, that where overall financial resources are limited, those who can make choice whether to pay for private healthcare or other consumption, will have to take partly financial responsibility for their healthcare costs, this way taking this off the state, who instead can then focus on those, who do not have this choice.

Empowering patients

The funding challenge for the healthcare system is tremendous in Romania.  Health care spending per capita will grow alongside a growing economy, but inevitably there are many competing interests for the available funding, and to bring the overall healthcare infrastructure and human capital up to standards will require more funding than the public finances will be able to handle.

In addition to this comes all the global factors which is making cost of healthcare grow faster than most other parts of the economy, such as ; people are living longer, most expensive medications and treatment methods are becoming available and health consumers are, through the internet age, much more enlightened and empowered, further driving up costs.

Private insurance is one of channeling additional funding in to the system, but it is for sure no magic bullet solution. Politicians have a responsibility, if they wish to support the complimentary private health insurance funding, alongside the public insurance market, to create a beneficial environment, such a s providing tax stimulus and other incentives for companies and individuals to take out cover.

The call for clear and complete regulations

Attracting EU money is the ability of the administration to provide a support and system, which will allow a proper application and project vetting and control and management system, to be able to obtain EU money made available, but waiting for disbursement.

Attracting private investment, is largely around clarifying the rules and making the system transparent, for how private investments will be allowed to contract and interact with public funding, as well as setting the rules for how a private insurance market will operate alongside the public insurance market, rules and regulations and identifying the incentives for stimulating private contributions in to this market.

I don’t personally think it is around providing financial support (as the state need the private sector due to specifically lack of capital, but rather through legislation and establishing a transparent and leveled playing field, where players can compete and provide choice to the health consumer.

Main benefit of a balanced system form of both private and state-owned healthcare institutions is providing additional funding in to the market and providing choice to the consumer. There is a clear requirement on the state to regulate the market, e.g establishing the rules within which market players has to act, as  otherwise there is a risk of abuse.

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