Bill for the state health care: -382 mil. €

Monday, 29. August 2011, 12:49 and

The government of Robert Fico via its ministers of health Ivan Valentovič and Richard Raši established the trend of state health care. The result is financial loss in the amount of 382 mil. €, which should pay all citizens of Slovak republic, either in higher taxes or in higher deductions.

General health insurance company (VŠZP) made in 2009 a record loss – even 27 mil. €. If the way of reporting of payment ability would not be softened since January 2009 and Health Care Surveillance Authority (HCSA) would not be politically commanded, then the VŠZP should long since have the obligation of designing the recovery plan. Critical situation in VŠZP was solved by increasing of capital by 65 mil. € and seizing of capital of Common health insurance company (SZP) in the amount of approximately 30 mil. €. State-owned and state-managed SZP generated loss 11 mil. €. In the end of the first quarter of 2010 was VŠZP operating with estimated loss of 50 mil. €. Financial situation will be at the end of the year probably even worse, similarly as in hospitals.

State health care facilities generated debt of 271 mil. €, while optically was the debt lowered by providing refundable financial help (119 mil. €) to 152 mil. €. We only remind, that state health care facilities, which were transformed to stock company, are without debts.

Law services connected with arbitrage, which arises as the consequence of by Fico’s government enforced prohibition of profit, burden the state budget by 11 million €.

Also from these numbers results, that engagement of state in health insurance companies and hospitals doesn’t lead to better management. For state would be much more effective to leave the market of health insurance and the market of hospital care to private owners and concentrate on thorough performance of regulating function. Possible losses from bad management of private owners doesn’t bear the state, but the owners. Moreover, besides the pressure on economic responsibility are private owners exposed also to much higher risk of loss of reputation, which is in health care very important.

For illustration of state wasting we remind the overpriced purchase of ambulances by state rescue service with financial loss 11 mil. € or the fact, that previous chairman of HCSA contracted unfavorable contracts, which deprived HCSA of 1 mil. €. Last four years in health care showed, that state is not able to manage. After its steps there will last financial loss minimally in the amount of 382 mil. € (i.e. 11.5 billion crowns). The bill is actually not final.

Engagement of state in health care system

Financial loss

Table: The result of management of state in health care

General health insurance company (estimation HPI to June 30, 2010)

-50 mil. €

General health insurance company – VšZP (economic result 2009)

-27 mil. €

Common health insurance company – SZP (economic result 2009)

-11 mil. €

State hospital health care facilities (to June 30, 2010)

-152 mil. €

Refundable financial help provided to state hospitals (2009)

-119 mil. €

Costs of arbitrage (2009 a 2010)

-11 mil. €

Unfavorable contracts of HCSA (2010)

-1 mil. €

Overpriced ambulances (2009)

-11 mil. €


-382 mil. €

Source: Health Policy Institute, 2010