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www.fdanews.com/articles/72739-government-role-in-polish-healthcare-poses-problems

Government Role in Polish Healthcare Poses Problems

May 27, 2005

Local pharmaceutical firms and market observers are increasingly questioning the role of government in the Polish sector, despite key regulatory changes in recent years. The reforms of 1999, which at first led to a state of chaos in the healthcare sector, have improved matters, but the management of funding remains problematic.

Although the sector's payers and providers are now separate, the legacy of the Soviet centralised system of healthcare funded from direct taxation can be seen in Polish healthcare's continued unresponsiveness to demand factors. A limited decentralisation process has been inefficiently handled and represents a serious entry barrier for pharmaceutical marketers and healthcare providers alike.

The key problem remains a funding shortfall, which only greater European Union integration and the growth of effective private sector provision are expected to improve. Nevertheless, at roughly 6%, Polish healthcare spending as a proportion is significantly lower than in regional peers such as the Czech Republic, where the level is 7.3%, and major markets such as the UK (7.6%) and the US (13.9%).