Author:

Abstract

The Czech Republic's reform of its health care system, a process that began in 1989, includes the development of a tax-based social insurance system and a rapid move toward privatization of the delivery system. Few countries in the region have taken steps as bold and consistent as those of the Czech Republic in the area of health care reform. Understanding the Czech health care reform process, including its successes and pitfalls, is therefore of primary importance to all countries in central and eastern Europe. This paper examines the economic and political aspects of Czech health care reform, utilizing 1997 data from the Organization for Economic Cooperation and Development and 1993 data from a survey conducted by the Czech Academy of Sciences. Two major research questions are addressed: What have been the effects of privatization and markets on the cost of health care and access to care in the Czech Republic? What has been the impact of the introduction of government-supported health insurance? The paper concludes that the cost of health care is increasing rapidly and that privatization is having a substantial impact on the structure of the health care system. Finally, the paper provides policy recommendations on health care reforms for the Czech Republic as well as other countries considering privatization.

Full Article [PDF]