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Norwegian government boosts funding for hospitals in 2025 to reduce waiting times - P4H Network

Norwegian government boosts funding for hospitals in 2025 to reduce waiting times

The Norwegian government reports it is increasing funding for the hospital sector in the state budget for 2025 by NOK 5.5 billion compared to 2024. The closest comparable increase took plance in 2008. The proposal will help hospitals to cover the increase in costs as a result of demographic changes and will help to slash waiting times.

The Norwegian government has proposed an increase of approximately NOK 5.8 billion in the hospital funding framework for 2025, aiming to improve access to high-quality healthcare and reduce waiting times. Minister of Health and Care Services, Jan Christian Vestre, emphasized that the shared welfare state remains the strongest form of health insurance for all Norwegians.

The proposed funding includes NOK 1.7 billion from the revised national budget for 2024 and increased allocations for activity-based schemes. This budget proposal represents one of the most significant increases in ordinary hospital funding since 2008, reflecting the government’s commitment to meeting the healthcare needs of an aging population, which is expected to drive cost increases of NOK 2.8 billion next year.

  • Cooperation Between Municipalities and Hospitals
    • The government will continue funding NOK 286 million for recruitment and collaboration subsidies to strengthen cooperation between municipalities and healthcare enterprises.
    • These funds will be directed towards improving patient pathways, personnel recruitment, and the development of combined healthcare roles.
  • Changes to Financing Mechanisms (Effective 2025)
    • The activity-based funding rate will be increased to 100% of the average treatment cost (from the current 80%).
    • Initiative-based funding for somatic care will be reduced from 40% to 30%, allowing for improved planning and coordination between hospitals and municipal services.
    • Hospital investment financing will be adjusted by reducing equity requirements and improving loan conditions, enhancing hospitals’ strategic flexibility.
  • Support for the Northern Norway Regional Health Authority
    To address unique challenges faced by healthcare providers in Northern Norway, the government has proposed special funding of approximately NOK 570 million for 2025. The allocation includes:
    • NOK 209 million for recruitment and retention of healthcare staff
    • NOK 135.2 million for recruitment and cooperation subsidies
    • NOK 150 million to maintain emergency services at hospitals in Narvik and Lofoten
    • NOK 41.7 million for the development of specialist health services in Alta
    • NOK 36.5 million to enhance preparedness and emergency services in Kirkenes

The government remains dedicated to ensuring that healthcare services are sustainable, effective, and accessible across all regions of the country.

“This proposal empowers hospitals to continue their critical work in reducing waiting times and improving service delivery for the entire population,”

stated Minister Vestre.

Reference
regjeringen.no, Minister of Health and Care Services of Norway, Norwegian government boosting hospital finances: waiting times to be slashed, regjeringen.no, Minister of Health and Care Services of Norway, 16 Oct 2024
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