Saturday, April 29, 2006
Sweden's health system is held up as a model for cost effective efficiency. But 35 years ago, it was a very different story.
Waiting lists were very long, hospitals run down and health workers' pay low. With an aging population and also demands for health services increasing, the government decided drastic action was also necessary. One of the more controversial reforms encouraged groups of health workers to set up private clinics that sold their services back to the government.
In Sweden, local government is responsible for managing health care, paying around 80 per cent of all costs. An additional four per cent comes from user fees. Patients pay 100 krona ($15) when every visit to a doctor, 250 krona ($37) for a specialist. Central government makes up the balance. Unlike Canada, doctors and other medical staff are on annual salaries.
Stockholm, the largest local government, pioneered private clinics. Under the system, known as the Stockholm model, the government pays to the private sector to provide a wide range of services. Someone may need a hip replacement, for example, could go to a state funded hospital or to a private clinic at government expense. Patient choice is paramount and the public sector is forced to compete with the private. Today, more than half of Stockholm's primary care is supplied by private companies.
posted by kanth
@ 2:05 AM
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