IHS Global Insight Perspective | |
Significance | Croatia's healthcare system has achieved financial stability, according to Health Minister Darko Milinovic, as a new drug reimbursement list is introduced including a number of new originator medicines. |
Implications | The savings made under the healthcare reforms in the first half have resulted in the stabilisation of the Croatian healthcare system's finances, making it possible to add new originator drugs to the reimbursement list. |
Outlook | The pharmaceutical industry stands to benefit from the stabilisation of the Croatian healthcare system's return to financial health, as the new update to the drug reimbursement list demonstrates. |
The revenues of the Croatian Institute for Health Insurance (HZZO) were higher than its planned expenditures by 4 million kuna (US$805,880) in the first six months, Croatian Health Minister Darko Milinovic is reported as saying in Croatian newspaper Poslovni Dnevnik. During the first half of the year, the HZZO brought down its debts by 311 million kuna, and the debts of Croatia's hospitals were reduced by 320 million kuna during this period, according to the statement by Milinovic. Although Milinovic stated that the HZZO's income in the first half was 11 billion kuna, a shortfall in revenues of 94 million kuna from self-insured people will mean that the HZZO will in fact be slightly in the red for this period, according to HZZO director Tihomir Strizrep, quoted in Poslovni Dnevnik. However, Strizrep emphasised that collection of unpaid health insurance contributions will be tightened, meaning that the HZZO will ultimately achieve a positive financial balance for the period.
The reduction in the rate of sick-leave pay, introduced as part of the health reforms initiated in Croatia at the beginning of 2009, has resulted in savings of 150 million kuna, the source quotes Milinovic as saying. The expansion of supplementary health insurance and the introduction of patient co-payments in hospitals has also meant that the revenues of Croatia's hospitals have risen by 344% in the first half, according to Milinovic.
Healthcare Savings Make Expansion of Reimbursement List Possible
The savings made as a result of the healthcare reforms launched at the beginning of 2009 have made it possible to expand the drug reimbursement list to include a number of new originator medicines, Croatian newspaper Vecernji List quoted Milinovic as saying, following the recent release of the new update to the country's drug reimbursement list.
The new reimbursement list includes 14 new originator medicines on the basic list. Among these are Danish company Novo Nordisk's long-acting insulin drug Levemir (insulin detemir), and U.S. pharma Pfizer's erectile dysfunction blockbuster Viagra (sildenafil). As well as these, the supplementary list (which includes drugs that require a co-payment) includes six new medicines, although no details of these are provided.
Selected New Originator Drugs on Croatian Basic Drug Reimbursement List |
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Source: Vecernji List |
Outlook and Implications
The healthcare-sector reforms introduced by Milinovic at the beginning of 2009 came at a time when the country's healthcare system was reported to be near collapse, and although the reforms have been unpopular, they appear to have been effective (see Croatia: 14 January 2009: Nurses in Croatia Criticise Healthcare Reforms).
The reforms have included the introduction of a reference-pricing system for prescription medicines, as well as special tenders for expensive drugs. Certain very expensive treatments for rare diseases have been withdrawn from the reimbursement list during this period (see Croatia: 12 June 2009: Fabry Disease Drug Taken Off Expensive Medicines List in Croatia).
However, the addition of a number of new originator drugs to the reimbursement list indicates that the efficiencies made in the first half have paid off, and that the tight management of the country's healthcare funds instigated as part of the reforms has ultimately benefited the pharmaceutical industry.