Croatian Hospitals Face Debt Crisis of 800 Million Euros

The news in Croatian

1. zdravstveni
   koji se odnosi na zdravlje ili medicinsku skrb ↩︎
2. sustav  (m.)
   skup elemenata koji zajedno djeluju ↩︎
3. dug  (m.)
   obveza plaćanja novca koji netko duguje ↩︎
4. farmaceut  (m.)
   osoba ili tvrtka koja proizvodi lijekove ↩︎
5. reforma  (f.)
   izmjene i poboljšanja u sustavu ili organizaciji ↩︎
6. upravljanje  (n.)
   proces vođenja ili kontroliranja ↩︎

Translation

Text comprehension

Question 1: How much of the hospital debt to pharmaceutical companies has not been paid?

Question 2: What does HUP want to ensure for patients?

Vocabulary

Croatian	English
zdravstveni	health
sustav  (m.)	system
dug  (m.)	debts
farmaceut  (m.)	pharmacist
reforma  (f.)	reform
upravljanje  (n.)	management

Read the full story

In recent months, Croatian healthcare facilities have been grappling with a substantial financial burden, as the debt owed by hospitals to pharmaceutical wholesalers surged past 800 million euros by the end of September. Of this staggering amount, over 600 million euros remain unpaid, inciting significant concern among industry stakeholders.

The Croatian Employers’ Association (HUP) has expressed mounting anxiety, highlighting a monthly increase of 40 million euros in debt. Irena Weber, the association’s Chief Executive, has stressed the urgent need for a strategic overhaul of the national healthcare system, abandoning temporary solutions for sustainable long-term reforms. She underlined how the chaotic financial state impacts not only the supply chain but also threatens patient safety as consistent delivery of medications cannot be guaranteed without financial stability.

Jasminko Herceg, Chairman of the HUP Coordination of Wholesalers and CEO of Medika, has warned about imminent legal proceedings against 34 hospitals failing to meet payment obligations. These hospitals have received payment reminders, with impending enforcement actions due shortly after deadlines lapsed. Medika, a major player in the industry, highlights their receipt of only 12 million euros out of an 80-million-euro relief package, a figure they deem insufficient for operational viability.

The government, having recognized the critical nature of medicine distribution, considered it vital infrastructure; however, industry experts argue that current financial interventions fall short of addressing the core issues. Concerns have been compounded by extended non-payment periods, reaching over 500 days in some institutions, putting additional pressure on an overstretched distribution network.

Stakeholders, including Ana Gongola, President of HUP’s Medicine Manufacturers Association, assert that while patients have not yet faced access issues, the ongoing financial strain endangers the overall healthcare framework. They call for comprehensive solutions, proposing a minimum state intervention of 500 million euros alongside adherence to legal payment deadlines to avert further fiscal deterioration.

The persistent financial challenges are attributed in part to unrealistic budgeting within the public health sector. As Hrvoje Stojić, Chief Economist at HUP, outlines, inefficient financial management coupled with comprehensive reforms, such as optimizing hospital networks and reducing unnecessary diagnostics, could lower expenses significantly.

Despite efforts to maintain continuity in drug supplies, continuing the current path without addressing the underlying budgeting issues might lead to dire repercussions for both health service providers and patients, marking a critical juncture for the Croatian healthcare system and its governance.

Info: ‘Croatian Learner News’ is a service from ‘Let’s Learn Croatian’, a dedicated language school offering a variety of online Croatian courses. We focus on delivering structured tutorials and interactive learning experiences for students of all levels, helping them progress in mastering the Croatian language.