The health care system as a new competitive factor in the light of the convergence programme

Abstract

The new (old) government's manifesto and the convergence programme have given a new impulse to the transformation of the health care system in Hungary. The provision of health care to the population crucially rests upon the pillars of ambulatory and inpatient care. Thus the question of how much in funds is being made available by the government in order to keep the system up and running is of significant relevance. The principles and policies governing the allocation of those funds merit further investigation as well. This paper argues that the health care system should be regarded as a new factor in economic competitiveness. It is easy to see that the future functioning of the health care sector is contingent upon the path followed by public finances, which in turn are closely mirroring the key aspects of the new convergence programme. The study demonstrates with empirical methods that the health care and the social security systems, already crisis-ridden, are very likely to face even more serious problems if the budget deficits persist. The planned rationalisation measures in the health care sector may hamper efforts to reintegrate socially marginalised individuals and the long-term unemployed into the labour market. Due to the funding problems of the health care system the objective of maintaining and improving the optimal health status of the economically active population, allowing people to stay in good health while working, is also at risk. It is a straightforward conclusion then that the health care system, as a new competitive factor, is in need of investment and an overhaul in order to become more efficient and to be able to tackle the challenges lying ahead. It is reasonable to assume that the tasks facing the health care system will multiply in the years to come. This prospect calls not for a curtailment of but an increase in funding, as the health care system, being a new competitive factor, is creating value by maintaining and enhancing the health status of the population.