CZECH GOVERNMENT SUPPORTS NEW HEALTHCARE COST-CUTTING MOVES

The Czech Republic's government has announced its support for a series of measures intended to reduce healthcare spending. According to reports, the plans could save up to US$1.4bn by mid-2007, with reimbursement changes and greater use of generic medicines key to the planned savings.

In common with many Central and Eastern European states, the Czech Republic's healthcare system is currently labouring under heavy debts, now totalling US$403mn. Under the proposals, the health insurance sector could be consolidated, with state-owned reimbursement agency VZP assuming a larger role. The government also hopes that new prescribing controls and monitoring processes could cut drug costs by up to 6%. Better co-ordination in bulk buying by hospitals, lower margins on pharmaceuticals and higher medical service fees are also among the main proposals.

The plans also appear to inch towards greater private provision of medical services, amid a drive to cut health fund spending by 2.5%, Unsurprisingly, health funds argue that the government should achieve the gains through paying off their debts and introducing "social" hospital accommodation, to be partly financed by the authorities.

Meanwhile, local pharmaceutical manufacturers' group CLK has argued that reducing pharmacy margins would be an inefficient means to cut drug spending, and urges the government to allow direct sales to doctors to continue. Market expenditure in the Czech Republic was some US$2.4bn in 2004.