Slovakia’s healthcare system faces high public hospital debt due to misaligned financial incentives, according to a European Commission report. The Value for Money (VfM) project identifies cost-saving measures, including better hospital management, equipment procurement, and pharmaceuticals. The 2017 DRG system offers reform opportunities.
The document provides an in-depth analysis of Slovakia’s healthcare system, assessing health spending, fiscal sustainability, and cost-effectiveness. It highlights systemic inefficiencies, financial constraints, and the potential for improvement through better hospital management, payment reforms, and a shift toward outpatient care.
One of the key concerns is the growing healthcare expenditure, which currently accounts for 5.6% of GDP. Projections indicate that, due to demographic shifts, spending could increase by 1.2% of GDP by 2070. This trend raises concerns about long-term fiscal sustainability, necessitating measures to improve efficiency and control costs.
Public hospitals in Slovakia are burdened with significant debt, amounting to approximately EUR 728 million. This financial strain is partly attributed to misaligned incentives in hospital management, leading to inefficient operations and poor financial oversight. The government’s Value for Money (VfM) project has identified concrete measures to enhance hospital management, optimize resource allocation, and reduce waste.
The introduction of the diagnosis-related group (DRG) payment system in 2017 presents an opportunity to transform hospital funding. By linking payments to the actual treatment provided rather than fixed budgets, DRG encourages efficiency and accountability in healthcare delivery. However, further efforts are needed to refine its implementation and ensure it achieves its intended goals.
Another critical recommendation is the need to reduce acute care bed capacity and shift resources toward outpatient and primary care services. Slovakia has a high reliance on hospital-based treatment, which is costly and often unnecessary. Expanding outpatient services can help optimize resource use, improve patient outcomes, and alleviate financial pressure on hospitals.
Additionally, the report highlights the potential for cost savings in areas such as procurement and pharmaceuticals. More transparent and competitive procurement processes could lead to significant savings, while optimizing pharmaceutical spending could reduce overall costs without compromising patient care.
To achieve long-term sustainability, Slovakia must implement targeted reforms that enhance efficiency, improve hospital management, and promote outpatient care. Strengthening primary care and preventive health measures will be crucial in improving health outcomes while ensuring fiscal responsibility. With the right policy measures, Slovakia can build a more effective and financially sustainable healthcare system for the future.
