Dutch Health Care Costs Shock

Health care expenditures in the Netherlands will be much higher in 1998than was anticipated in September 1996. While at that date it was forecast than an increase of 300 billion guilders would be necessary, estimates of extra spending are now rising as high as 1 billion guilders ($530.6 million).

One of the most difficult areas is home care, Health Minister Els Borst has told parliament. New arrangements introduced on January 1, 1997, are now in total chaos, due to weak management resulting from the many reorganizations in recent years. Other problems include the fact that many advisory committees, which were formerly important but are now defunct, have not been eliminated.

Most importantly, notes the Marketletter's local correspondent, is the feeling that the Health Ministry lacks any vision as to long-term planning. Parliamentarians say that actions by Mrs Borst and her Secretary of State, Mrs E Terpstra, always have to be "repaired;" for example, oral contraceptives were removed from fund reimbursement and then reinstated.