Romanian health system thrown into crisis

Romanian health system thrown into crisis
By Alexandru Alexe, Associated Press Writer May 13, 2005

BUCHAREST, Romania -- Romanian pharmaceutical wholesalers announced Friday they were joining medical supplies sellers in a boycott of indebted hospitals, throwing the Romanian health system into its deepest crisis since the country shook off Communism in 1989.

The Association of Drug Distributors and Importers and the Association of Romanian Drug Suppliers, two groups representing most companies on the drug market, said they could no longer grant credit to hospitals.

The groups claim that 90 percent of hospitals have unpaid bills, which amount to over euro200 million (US$260 million) in unpaid bills. The crisis is caused by chronic underfunding of the health system in recent years.

Moreover, a recent auditors' report found that the previous government misspent 22,000 billion lei (US$780 million, euro600 million) in funds collected for health insurance on other priorities.

The drugs boycott is to begin on Monday, and suppliers said they were also cutting off indebted pharmacies. Most pharmacies already refuse to fill prescriptions under the state health insurance plan. Distributors said they have agreed to cut prices on some drugs, but want the government to make a firm commitment to pay the debts.

In addition, health workers' unions are threatening to strike next week, and called on the government to allocate more funds to the health system.

Prime Minister Calin Popescu Tariceanu said Thursday the health system was having "grave problems," that were caused "by poor management of funds."

He pledged to "find solutions to rehabilitate the health system."

The Health Ministry announced it was taking over deliveries of medical supplies through state-owned companies to ensure that hospitals continue to operate.

Health Minister Mircea Cinteza has said the government was making efforts to pay past debts to suppliers and called on them to continue deliveries.

Since Communism fell in 1989, Romania has struggled to reform its antiquated health system and poor management and a chronic lack of funds has led to periodic shortages of drugs and medical supplies.