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OECD recommends changes in healthcare system funding

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Prague, July 16 (CTK) – The Czech healthcare system fares well compared to other Central and East European economies, but it needs changes in its funding, the Organisation for Economic Cooperation and Development (OECD) says in its report that its Secretary-General Angel Gurria presented in Prague on Monday.

Along with PM Andrej Babis (ANO), Gurria is to meet Health Minister Adam Vojtech (for ANO).

The role of state in the healthcare system must be lowered and the system should be adapted to the population ageing, the OECD says.

The organisation recommends a stronger competition between healthcare providers and insurers and a higher share of private funding with the aim to make the system more efficient, up its quality and lower its dependence on public finances.

A high dependence of the system on contributions from wages will exert pressure on state resources because of the population ageing, the OECD says.

According to the organisation, which associates 36 advanced countries, one of the possible paths is to limit the application of the Czech law on coverage of healthcare services, which prevents real negotiations on prices between providers and insurers.

The OECD recommends the introduction of a two-pillar health insurance system, while the other pillar should be optional for the coverage of extra care beyond the framework of the necessary one.

The OECD also recommends to extend the scope of obligatory health insurance payments to apply also to capital and real estate incomes, for instance, to raise the healthcare budget. The health insurance level of the self-employed should also gradually rise.

Besides, the Czech Republic is to consider increasing the excise tax on alcohol and tobacco products and introducing a tax on sugared drinks and high-fat food products.

Moreover, the OECD points out that the population ageing also afflicts health care personnel in the Czech Republic. In 2015, 37 percent of doctors were over 55 and last year, one-third of GPs were over 60.

The high average age of doctors may result in a limited offer that will affect the accessibility and quality of health care, the OECD warns.

The OECD experts say the introduction of a uniform monitoring mechanism would increase the care efficiency.

When its comes to the care performance itself, the OECD recommends to stress the role of general practitioners and introduce special fees for the patients circumventing them.

In general, the OECD calls for lowering the hospitalisation share in favour of outpatient and daily care, which would save finances in the system.

In 2015, the average hospitalisation length in the Czech Republic was 9.3 days, which is 1.5 days above the OECD average. More indicators also show that the Czech Republic could lower the number of hospital beds.

On the contrary, investments are needed in other areas, for instance, in psychiatric hospitals, long-term care facilities and smaller local hospitals, the OECD says.

In general, the OECD assesses the Czech healthcare system as one of the best compared to other Central and East European countries.

However, the Czech Republic is still lagging behind the OECD average in many indicators. The Czech system is not fully using its potential as some countries with similar expenditures and institutional features achieve better results, the OECD says.

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