DOCTORS WARN GOVERNMENT OF VAT EFFECTS ON HEALTH SERVICES

( Editorial: --> 7389 ) ZAGREB, March 5 (Hina) - The Croatian Medical Association (HLZ) has warned Prime Minister Zlatko Matesa the application of the recently introduced value added tax (VAT) has brought into question the continued quality of health protection. "Croatian doctors will continue to offer the maximum quality of health protection, but we fear that current conditions will bring a drastic fall in quality," the Association said in its letter to Matesa. The letter added: "We are encouraged by the fact that you (Matesa) promised to examine the effects of the application of VAT in the health sector and intervene, but we request that you do this as soon as possible because the situation in practice is markedly worrying." Association members came to such a conclusion based on numerous information from health institutions across Croatia delivered at last week's 106th HLZ annual assembly, said the letter which was also released to the media. Besides higher costs for buying medicines, medical operating supplies and equipment because of the introduction of VAT, health institutions also have significantly higher operating costs because of increases in the price of food, utilities, water and other similar expenses. This even brings into question using recently bought modern and quality equipment on World Bank credit because there is a lack of financial means for repairs, regular maintenance and operating supplies, the HLZ letter to Prime Minister Matesa said. (Hina) jn mb /jn 051816 MET mar 98