On price cuts
The notion that healthcare would be protected from cuts is looking increasingly silly.
We’ve already seen enormous reimbursement rate drops. In Italy, Alliance Medical reports average tariff cuts of 20% over the past year. Global Health Partner gives the same figure for the scale of cuts to elective surgery tariffs in Sweden. Cuts in Greece are reportedly even higher: Iaso reckons tariffs in the private sector have fallen by 50%. Portugal made two consecutive 13% price cuts in the outpatient sector.
That’s not to say that everyone is doomed. Some countries, such as the UK, haven’t been making broad-based tariff cuts yet. Even where there have been quite large cuts, private sector players are adjusting. Lab, imaging and dialysis players haven’t quit Portugal. Iaso continues to make a small profit on its private-pay activities. Alliance Medical is confident it can make money in Italy.
If the private sector can continue to thrive, it will reinforce the argument that healthcare has been plagued by inefficiencies and poor management. And the good news? Private operators will look far more attractive to public-sector payors if they can provide services at a lower price than the public sector. That’s exactly what’s happening, too, all across the continent.
We would welcome your thoughts on this story. Email your views to Max Hotopf or call 0207 183 3779.
