EXCLUSIVE: Romanian Govt Pledges To Reduce In-Hospital Treatment, Drug Markup

Romania's Government plans to limit in-hospital treatment next year to 10% of its 2010 level and reduce the price markup paid for drugs used in treating cancer, diabetes, HIV/AIDS, TBC to 1.5% for retail and 4% for wholesale purchases.

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The measures considered by the Government to reduce spending in the healthcare sector are included in the additional letter of intent agreed upon with the International Monetary Fund and obtained by MEDIAFAX.

According to the document, the Government will "limit the number of contracted hospital in-patients by 10 percent relative to the 2010 levels, through annual contracts with the hospitals; eliminate mandatory contracting with all hospitals, allowing competitive contracting with selected hospitals […]; reduce the price markup paid by the government for drugs in the national programs (list C2) at both retail and wholesale levels to 1.5 and 4 percent, respectively."

List C2 comprises drugs used in the treatment of cancer, diabetes, HIV/AIDS and tuberculosis.

The Government also plans to "reduce the share of per-capita reimbursement of [family] doctors from 70 to 50 percent, in favor of per-service reimbursement."

The letter also says the package of benefits provided by the Government will be reformed, with assistance from the World Bank, "to exclude coverage of costly nonessential health services."

"To improve controls over the financial performance of the sector, [the Government] will cap the nominal amount of quarterly services contracted with hospitals, primary care doctors and pharmacies to budgeted amounts," says the letter.

Romania and the IMF last year signed a EUR13 billion loan agreement, part of a larger EUR20 billion aid package that includes funds from the European Commission, the World Bank and other foreign lenders.

Late October, joint teams from the IMF and EU visited Romania to assess the country's progress under the agreement and decide on whether to disburse new aid.

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