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POLAND EXPECTS IMPROVED REIMBURSEMENT FINANCES

June 27, 2005

Polish officials expect the budget for the national reimbursement fund, the NFZ, to reach PLN1.8bn (US$542.02mn) in 2006. From January, contributors will increase payments by 0.25%, further boosting funds beyond an expected increase due to macroeconomic growth.

The NFZ's funding has already grown by PLN1bn (US$301.15mn) in 2005, following improved collection and a rise in average earnings. Significantly, the surplus will be earmarked for reimbursement of pharmaceuticals, rather than higher payments to hospitals, even though primary care institutions are guaranteed an annual increase in payments by law.

However, any hope that the research-based sector stands to gain from the availability of more reimbursement money appears misplaced. Poland operates a reimbursement list dominated by generics, to which not one innovative molecule has been added since 1999. Further, recent reports have noted significant downscaling by multinationals in recent months.