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Polish Healthcare Sector Financial Challenges and Opportunities Dariusz Strojewski Magellan. I. Main challenges & problems:. Overdue debt: (*) Overdue debt increased by the overdue debt forgiven in 2006 or converted into regular debt to be forgiven in the future
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Polish Healthcare Sector Financial Challenges and Opportunities Dariusz Strojewski Magellan
I. Main challenges & problems: • Overdue debt: • (*) Overdue debt increased by the overdue debt forgiven in 2006 or converted into regular debt to be forgiven in the future • Structural reasons (macro): • Oversupply of services (excess capacity) • Chronic deficit (1-1.5 bn PLN p.a.) • „Inherited” debt • Fixed assets in decay • Poor supervision – no real ownership
I. Main challenges & problems – cont.: • Political reasons: • No long-term policy/occasional debt reductions • Subject of political games/fight for electorate • Strong lobbies: trade unions, doctors, professors, nurses, suppliers • Financial allocations/management appointment • Financing system deficiencies: • Unclear, frequently changing allocation system • Cash-flow mismatch • No medium/long-term horizon
I. Main challenges & problems – cont.: • Micro level: • Poor and weak (financial) management/no financial discipline • Wrong staffing structure • Monthly financial cycle • Corruption • Pressure on maximization of services/costs • Social role of hospitals/clinics • Very limited offer of specific financial instruments
II. Opportunities and chances: • Economic/epidemiologic rules of resources allocation • Long-term stability of rules • Ownership changes (corporatization) and recapitalization • Development of market-based financial services to the sector