Abstract

Main Economic Pitfalls of the Czech Health Care Transformation and Possible Solutions

Jaromir Veprek

Institute for the Study of International Aspects of Competition

Working Paper 97-1

The Czech republic inherited a health care system plagued by outdated equipment, a distorted salary structure, poor management, and unrealistic public expectations. These problems, exacerbated by the difficulties of systemic transition, led to a physicians’ strike in November 1995. In the strike’s aftermath, the Ministry of Health Care hurried to adopt reforms, some of which were ill-prepared. The basic task for the near future is to stabilize the economic and organizational basis of the health care system and introduce an efficient control system. Appropriate incentives need to be established for both health care professionals and for users of the health care system.