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Waste of Resources in Czech Healthcare: CZK 27.6 Billion

The objective of this study, which was part of the Transparent Healthcare Project, was to direct public attention to the poorly designed system for the financing of healthcare in the Czech Republic. "Based on our analysis, the total losses (or, in other words, wasted resources) in the [Czech] healthcare system in 2005 have been estimated at no less than CZK 20.1 billion. This amount corresponds to 0.67% of the national gross domestic product and 9.5% of the national expenditures on healthcare. If we were to add the losses incurred in the disability benefit system, which currently operates separately from the healthcare system, to the above number, our estimate would grow to CZK 27.6 billion," according to Jan Pavel, the author of the study.

As the primary causes of these losses, TIC sees first the fact that the various pieces of legislation covering the area of healthcare are often inconsistent and consequently, the implementation of these legislative requirements often brings about high transaction costs. In addition, a number of top management positions in the healthcare field are staffed without the use of open-type recruitment procedures. As a consequence, the performance of the management hired in this manner tends to result in financial losses (or unnecessary financial expenditures) on the part of the respective healthcare providers.

TIC hereby appeals to the Minister of Health and asks the Minister to act upon and take an aggressive approach in the reform of the system, which should not be limited to the introduction of patient co-payments. These on their own will not prevent the waste of resources in healthcare.

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