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198 Economic <strong>crisis</strong>, <strong>health</strong> <strong>systems</strong> <strong>and</strong> <strong>health</strong> in Europe: country experience<br />

Emergency hospitals receive an additional budget for emergency room <strong>and</strong><br />

admission services. The hospitals bear the financial risk of running over their<br />

budgets if they have higher costs, even if they treat more patients or provide more<br />

services. In 2012, a decision was taken to introduce Nord-DRG (the Nordic<br />

DRG scheme) in hospitals in 2014. This is seen as a considerable advantage<br />

compared with the current payment system.<br />

Emergency care restructuring<br />

A reform of the emergency car service was undertaken in 2009 in order to save<br />

financial resources <strong>and</strong> to increase the effectiveness of service provision in the<br />

pre-hospitalization phase. As a result of the reform, the emergency care services<br />

of 39 municipalities, each with its own unique structures for the provision of<br />

emergency care, were merged into the state service under the supervision of the<br />

Ministry of Health. Consequently, the accessibility <strong>and</strong> quality of emergency<br />

care in most of the country has been harmonized <strong>and</strong> inefficiencies have been<br />

reduced. Access also improved through better coordination of emergency care<br />

(there is now a central call centre in Riga providing a single system for the<br />

whole country).<br />

Reductions in <strong>health</strong> sector salaries <strong>and</strong> changes to working<br />

conditions<br />

In addition to these changes to the <strong>health</strong> sector structure, the average monthly<br />

remuneration of all employees working in the <strong>health</strong> sector decreased by 3%<br />

between 2009 <strong>and</strong> 2010 (from LVL 446 (€635) to LVL 434 (€618)) while the<br />

average monthly salary stayed the same, at LVL 335 (€477). The average monthly<br />

remuneration of physicians, which includes salary, additional payments <strong>and</strong><br />

bonuses, was, according to the Ministry of Health, LVL 657 (€935) in 2010.<br />

Since 2011, there has been a slight increase in salary levels (Mitenbergs et al.,<br />

2012).<br />

Pharmaceutical sector reforms<br />

In 2012, after difficult <strong>and</strong> controversial discussions, the government amended<br />

the Regulations on the Reimbursement System for Pharmaceuticals <strong>and</strong> Medical<br />

Devices to rationalize the pharmaceutical care provided by the NHS. The reference<br />

pricing system for pharmaceuticals in the reference list was changed. Previously,<br />

the NHS paid the same (lowest) price (reference price) for all products in the<br />

same reference group (products with similar chemical/therapeutic characteristics)<br />

<strong>and</strong> pharmacists <strong>and</strong> patients could choose any one of these products. The patient<br />

would need to pay the difference between the reference price <strong>and</strong> the actual price<br />

of the chosen drug OOP (in addition to the regular drug co-payment) if the drug<br />

was more expensive than the reference price. According to the new regulations,

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