State hospitals in Slovakia to be transformed into private organisations

2010-08-24

The transformation of state-funded hospitals into private companies shall commence at the beginning of next year, according to the amended Health Insurers Act and associated acts prepared by the Ministry of Health. The transformation into joint-stock companies will need to be completed by the end of 2011. The non-for-profit organisations providing healthcare services will also have an opportunity to undergo such transformation, although no deadline will be set for their privatisation.
The state will hold 100% stakes in the newly established private companies. The transformation shall implement hospital management responsibility for financial results, transparent accounting and mandatory audits, explained the Ministry in the draft legislation.
The proposed act leaves space for selling up to 49% of hospital shares to private investors which prompted concerns, including from Milan Dragula, the president of Slovak Medical Chamber (SLK), in Denik Pravda. Specifically, Mr Dragula fears the transformation of faculty hospitals, as these hospitals look after patients with complicated illnesses and private co-owners may lose interest in disbursing such expensive treatment.
Though the state health sector receives financial aid (in 2009 it was a subsidy of €130m), the debt of state hospitals has risen (by €50m in 2009).