The Health Sector in the Slovak Republic: Efficiency and Reform

Abstract

This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.The paper assesses the financial situation of the health sector in the Slovak Republic. It also evaluates the efficiency of health expenditures and service delivery in comparison to the OECD and other new EU member states and suggests avenues for cost recovery and reform. The health sector of the Slovak Republic is plagued by financial problems. To turn around health system finances and achieve larger gains in health outcomes, the efficiency of health spending needs to increase and the mix and quality of real health resources need to be improved. Although Slovak's overall health spending efficiency is on par with that of the OECD, substantial inefficiencies occur in the process of transforming intermediate health inputs into health outcomes. Efficiency may be enhanced by containing the cost of drugs and reducing reliance on hospital care. Also, although cost-effectiveness may be relatively high at present, its sustainability in the future is an issue. JEL Classification Numbers: H11, H51, I12, I18

Improving Health System Efficiency: Perspectives of Decision-Makers

“…If environmental factors and health system performance characteristics are distinguished from inputs, they are either included alongside inputs as an uncontrollable parameter 31 or used as factors for efficiency scores in the second-stage regression analysis. 32 To perform the procedures outlined above, four major components of the model must be identified:…”

“…3 A health system-level analysis uses DMUs at any level above an individual organization, such as a hospital, physician practice or residential care facility. The literature review conducted for the purposes of this project indicates that system-level studies of efficiency are typically carried out at a national level (that is, where the DMUs are countries), 32, 75 a sub-national level (that is, where the DMUs are provinces or states) 76,77 and a regional level (that is, where the DMUs are regional authorities). 78 In Canada, the health system consists of 10 provincial and 3 territorial sub-national health systems, which are responsible for administrating and delivering health care services and co-funded by the federal government.…”