HOUSE OF COUNTIES STARTS DEBATE ON REFORM OF HEALTH SYSTEM

ZAGREB, July 13 (Hina) - The House of Counties on Thursday continued its 44th, extraordinary session with a debate on a draft strategy and plan of reform of the health and health insurance system. The government decided on the reform of the health system because of the serious structural, organisational and financial problems the system is faced with. The reform is aimed at reorganising the system of financing, curbing the increase of health costs, improving the efficiency and quality of health services and increasing preventive and primary health care. The 2000 budget of the Croatian Health Insurance Institute (HZZO) amounts to 12.8 billion kuna, whereas the Institute's debts amount to 4.2 billion kuna, which causes insolvency in the entire health system. In order to financially consolidate the health system, the government has suggested that the current system of financing and payment of services be reorganised. The reform of the health system is an extensive task which should be carried out very carefully, Health Minister Ana Stavljenic Rukavina said, adding the health system was one of the largest economic systems in the country, with some 65,000 employees and a share in Gross Domestic product amounting to more than nine percent. Health services are used by some 4.2 million persons. Annually 550,000 patients receive hospital treatment; there are about eight million visits to specialist and more than 30 million visits to primary health care stations. About two billion kuna are spent every year for medicines which are financed through health insurance alone and the costs show an upward trend. (hina) rml