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Health Systems in Transition - Hungary - World Health Organization ...

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<strong>Health</strong> systems <strong>in</strong> transition <strong>Hungary</strong> 111<br />

One of the ma<strong>in</strong> legacies of the Semashko-style system <strong>in</strong> place dur<strong>in</strong>g the<br />

communist era was an oversized hospital sector, which came to be considered<br />

<strong>in</strong>efficient and <strong>in</strong>equitable (see section 7.5.2), lead<strong>in</strong>g to calls for restructur<strong>in</strong>g<br />

and downsiz<strong>in</strong>g. In the first phase of reforms <strong>in</strong> the mid-1990s, the government<br />

<strong>in</strong>troduced a DRG-based hospital payment system for acute <strong>in</strong>patient care<br />

and per diem payments for chronic <strong>in</strong>patient care, as well as a three-member<br />

structure for top hospital management, accord<strong>in</strong>g to which a f<strong>in</strong>ancial director,<br />

medical director and nurs<strong>in</strong>g director managed the <strong>in</strong>stitution together. These<br />

measures did not produce significant structural reorganization <strong>in</strong> the hospital<br />

system, but it has to be noted that a uniform base rate was not <strong>in</strong>troduced until<br />

1998 (1996/14).<br />

The next government attempted to address the issue more directly. First,<br />

as part of the restrictive package of 1995, the M<strong>in</strong>istry of Welfare 1 became<br />

responsible for bed reduction decisions by determ<strong>in</strong><strong>in</strong>g the capacities to be<br />

contracted for under the territorial supply obligation by local governments.<br />

A total of 8000 beds was removed from the system <strong>in</strong> 1995 (1995/5), but the<br />

decision-mak<strong>in</strong>g process was found to be unconstitutional by the Constitutional<br />

Court (1995/13), which ordered the government to develop a more systematic<br />

method for apply<strong>in</strong>g the territorial supply obligation. The 1996 Capacity Act<br />

determ<strong>in</strong>ed the maximum number of beds and outpatient consultation hours<br />

per specialty and per county based on a formula that aimed at represent<strong>in</strong>g the<br />

health needs of local populations (1996/4). The Act was expected not only to<br />

reduce the number of beds considerably but also to produce a more equitable<br />

geographical distribution. Its implementation was left to the county consensus<br />

committees summoned by the NPHMOS and compris<strong>in</strong>g representatives<br />

of local health care providers such as hospitals, the local branches of the<br />

Hungarian Medical Chamber and county offices of the NHIFA (see section<br />

2.2). In counties where beds had to be reduced based on the formula, the county<br />

consensus committees had to agree which provider would give up how many<br />

beds. As a result, the number of beds decreased by another 9000 <strong>in</strong> 1997, and<br />

rema<strong>in</strong>ed at around 80 beds per 10 000 population until 2006. The government<br />

also endorsed cost-effective forms of care, <strong>in</strong>clud<strong>in</strong>g same-day surgery and<br />

home care. For <strong>in</strong>stance, <strong>in</strong> 1996, a separate HIF sub-budget was created for<br />

home care services, for which HIF expenditure was also <strong>in</strong>creased (see also<br />

section 5.8).<br />

As a result of all these changes, the number of acute hospital beds was<br />

reduced by 20% between 1992 and 1997 and the number of hospital beds for<br />

chronically ill patients was also reduced by 17%, accord<strong>in</strong>g to national statistics.<br />

1 As of 2010 called the State Secretariat for <strong>Health</strong>care with<strong>in</strong> the M<strong>in</strong>istry of National Resources.

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