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Memorandum of Understanding on Specific Economic Policy Conditionality4. The programme of hospital computerisation allows for a measurem<strong>en</strong>t of financial andactivity data in hospital and health c<strong>en</strong>tres. Moreover, the Minister of Health defines a coreset of non-exp<strong>en</strong>diture data (e.g. activity indicators) in line with Eurostat, OECD and WHOhealth databases, which takes account of the future roll-out of DRG (diagnostic-relatedgroups) schemes in hospitals (continuous).5. The Governm<strong>en</strong>t starts to develop a system of pati<strong>en</strong>t electronic medical records(continuous).6. The Governm<strong>en</strong>t, with technical assistance from experts across EU, continues to develop afull DRG costing and reimbursem<strong>en</strong>t system while improving the existing KEN system,with a view to developing a modern hospital costing and reimbursem<strong>en</strong>t system forcontracting (on the basis of prospective block contracts betwe<strong>en</strong> EOPYY and NHS). Theexisting set of KEN is used in all hospitals:i. A DRG Managem<strong>en</strong>t Institute is established (June 2014).ii.iii.iv.The legal framework, coding manuals and cost adaptation methodology will beadopted by <strong>en</strong>d 2014. DRGs cost weight methodology will include a detailed itemon costs of personnel.In 2015 the DRG system is implem<strong>en</strong>ted in a group of pilot hospitals.In 2016 the DRG system is ext<strong>en</strong>ded to all hospitals (test period).v. In 2017 the DRG system is applied to all hospitals in a budget neutral way(including personnel costs) and EOPYY contracts hospital care on the basis ofprospective budgets based on DRGs (including personnel costs).7. A follow up analysis of how hospital accounting schemes integrate DRGs at hospital levelin view of future activity-based cost reporting and prospective budgets paym<strong>en</strong>t forhospitals will be submitted on a regular basis (twice yearly, next report June 2014).2.9.4. C<strong>en</strong>tralised procurem<strong>en</strong>t1. The Governm<strong>en</strong>t increases substantially the number of exp<strong>en</strong>diture items and therefore theshare of exp<strong>en</strong>diture covered by c<strong>en</strong>tralised t<strong>en</strong>der procedures through EPY up to 45% of allthe exp<strong>en</strong>diture in medicines and medical devices by 2014. This share goes up to 60% in2015. The Governm<strong>en</strong>t <strong>en</strong>sures the use of such t<strong>en</strong>der procedures (continuous).2. EPY will undertake t<strong>en</strong>der procedures for framework contracts for the most exp<strong>en</strong>sivemedicines sold in EOPYY pharmacies (continuous).3. EPY will publish a detailed annual report on its activity (annual report, next report April2014).4. In compliance with EU procurem<strong>en</strong>t rules, the Governm<strong>en</strong>t conducts the necessaryt<strong>en</strong>dering procedures to implem<strong>en</strong>t a compreh<strong>en</strong>sive and uniform health care informationsystem (e-health system) including the full and integrated system of hospitals' IT systems(continuous).186

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