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HEALTH INSTITUTE HEAD WARNS ABOUT POSSIBLE HEALTH SYSTEM CRASH

ZAGREB, Dec 12 (Hina) - Owing to lower funds envisaged for health in next year's state budget, hospitals will have 870 million kuna (approx. US$105.5 million) less at their disposal, which will probably lead to a "complete crash" of the health system and a shortage of medicines by May, the director of the Croatian Health Insurance Institute, Zdravko Loncarec, said on Wednesday. Addressing a session of the Institute's Steering Council, he said there would be a lack of 4.3 billion kuna to meet expenses. Budgetary funds for health have been cut by 1.1 billion. Hospitals owe suppliers one billion kuna, and the debt is expected to rise by another billion in 2002. The reduction in hospital budgets will entail salary cuts, which account for 64 percent of hospital expenses, or the debts to suppliers will accumulate, said Steering Council member Josip Jelic. At the end of October, health institutions claimed 1.7 b
ZAGREB, Dec 12 (Hina) - Owing to lower funds envisaged for health in next year's state budget, hospitals will have 870 million kuna (approx. US$105.5 million) less at their disposal, which will probably lead to a "complete crash" of the health system and a shortage of medicines by May, the director of the Croatian Health Insurance Institute, Zdravko Loncarec, said on Wednesday. Addressing a session of the Institute's Steering Council, he said there would be a lack of 4.3 billion kuna to meet expenses. Budgetary funds for health have been cut by 1.1 billion. Hospitals owe suppliers one billion kuna, and the debt is expected to rise by another billion in 2002. The reduction in hospital budgets will entail salary cuts, which account for 64 percent of hospital expenses, or the debts to suppliers will accumulate, said Steering Council member Josip Jelic. At the end of October, health institutions claimed 1.7 billion kuna from the Institute, it was said. (US$1 = 8.25 kuna) (hina) ha sb

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