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Country profiles of health system responses to the crisis | Latvia 427 User charges • Co-insurance rates for drugs for some conditions (mainly cardiovascular diseases) increased from 25% to 50% or from 10% to 25% (2009); the 50% rate was lowered to 25% in 2010. • Introduction of new exemptions from user charges for households with an income below LVL 120 per family member per month, while households with an income below LVL 150 per family member per month became eligible for a 50% reduction in user charges (2009). • Increase in co-payments for physician and outpatient department visits and inpatient stays (2009). • Increase in the cap on OOP payments for an inpatient stay and for a year (from LVL 80 and LVL 150 to LVL 250 and LVL 400, respectively) (2009). • Introduction of a co-payment of up to LVL 30 for inpatient surgical interventions and increased co-payments for various diagnostic services (up to LVL 25, but not for prescribed laboratory tests) (2009). • Modification of the reference pricing system so that patients purchasing any but the cheapest drug in a group must pay the full price as OOP payment (2012). • From 2012, only households with an income below LVL 90 per family member per month would be exempt from user charges (2012). Changes to health service planning, purchasing and delivery Prices of medical goods • Introduction of a pay-back system if the NHS drug budget is exceeded, with €5.6 million paid back to the NHS in 2011. • Expanded reference price groups to include more drugs and reduced the number of products in a group for List A drugs (interchangeable products) to one (the cheapest) (2012). • Prescriptions for new patients must specify the active ingredient (2012). • Pharmacists must dispense the cheapest drug in a reference group (2012). Salaries and motivation of health sector workers • An average 20% reduction occurred in the salaries of all health workers in 2009 and a fall in overall average monthly remuneration of health sector workers by 3% between 2009 and 2010, with slight increase in 2011. Payment to providers • Increased day-care payment rate in order to shift patients away from inpatient care (2009).
428 Economic crisis, health systems and health in Europe: country experience • A combination of per diem fees and activity-based payments was replaced by global budgets to pay for hospital care (2010). • Introduction of a DRG-based hospital payment system planned for 2014. Overhead costs: restructuring the Ministry of Health and purchasing agencies • Reduction of the number of employees of the Ministry of Health and its agencies by 55% between 2009 and 2012. • Numerous agencies closed, including the State Agency of Health Statistics and Medical Technologies, the State Centre of Medical and Professional Education and the Public Health Agency (2009). • Various agencies were reorganized: the Health Payment Centre was established in 2009 and, in 2011, merged with the Centre of Health Economics under the umbrella of the Latvian NHS. Provider infrastructure and capital investment • The State Emergency Medical Service was established in order to gradually take over emergency medicine functions from medicare institutions, centralize the emergency system (provision of emergency care services used to be decentralized across 39 municipalities) and save administrative costs (2009). • The number of hospitals providing inpatient care decreased from 88 in 2008 to 67 in 2010; the number of hospital beds decreased from 746 to 532 per 100 000 inhabitants between 2008 and 2010. At the same time, the number of the NHS-contracted hospitals decreased from 79 to 39. • Most specialized hospitals were closed or transformed into day-care and outpatient institutions; several local hospitals were downgraded to low intensity “care hospitals” (catering for patients after discharge from acute care hospitals) (2009 onwards). Some hospitals were still left with excess infrastructure. • A pilot e-health system commenced in 2012. The full system will include e-receipts, e-health records, e-bookings, e-referrals and an e-portal and is expected to be implemented in 2014. Priority setting or protocols to change access to treatments, coordination of care and patterns of use • Introduction of a programme to increase responsibilities and duties of family doctors, including increased support of the provision of medical care at home (2009). • Social Safety Net resources used to support the introduction of home care services for the chronically ill, development of day-care centres for the
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Country profiles of <strong>health</strong> system responses to the <strong>crisis</strong> | Latvia<br />
427<br />
User charges<br />
• Co-insurance rates for drugs for some conditions (mainly cardiovascular<br />
diseases) increased from 25% to 50% or from 10% to 25% (2009); the<br />
50% rate was lowered to 25% in 2010.<br />
• Introduction of new exemptions from user charges for households with an<br />
income below LVL 120 per family member per month, while households<br />
with an income below LVL 150 per family member per month became<br />
eligible for a 50% reduction in user charges (2009).<br />
• Increase in co-payments for physician <strong>and</strong> outpatient department visits<br />
<strong>and</strong> inpatient stays (2009).<br />
• Increase in the cap on OOP payments for an inpatient stay <strong>and</strong> for a year<br />
(from LVL 80 <strong>and</strong> LVL 150 to LVL 250 <strong>and</strong> LVL 400, respectively) (2009).<br />
• Introduction of a co-payment of up to LVL 30 for inpatient surgical<br />
interventions <strong>and</strong> increased co-payments for various diagnostic services<br />
(up to LVL 25, but not for prescribed laboratory tests) (2009).<br />
• Modification of the reference pricing system so that patients purchasing<br />
any but the cheapest drug in a group must pay the full price as OOP<br />
payment (2012).<br />
• From 2012, only households with an income below LVL 90 per family<br />
member per month would be exempt from user charges (2012).<br />
Changes to <strong>health</strong> service planning, purchasing <strong>and</strong> delivery<br />
Prices of medical goods<br />
• Introduction of a pay-back system if the NHS drug budget is exceeded,<br />
with €5.6 million paid back to the NHS in 2011.<br />
• Exp<strong>and</strong>ed reference price groups to include more drugs <strong>and</strong> reduced the<br />
number of products in a group for List A drugs (interchangeable products) to<br />
one (the cheapest) (2012).<br />
• Prescriptions for new patients must specify the active ingredient (2012).<br />
• Pharmacists must dispense the cheapest drug in a reference group (2012).<br />
Salaries <strong>and</strong> motivation of <strong>health</strong> sector workers<br />
• An average 20% reduction occurred in the salaries of all <strong>health</strong> workers in<br />
2009 <strong>and</strong> a fall in overall average monthly remuneration of <strong>health</strong> sector<br />
workers by 3% between 2009 <strong>and</strong> 2010, with slight increase in 2011.<br />
Payment to providers<br />
• Increased day-care payment rate in order to shift patients away from<br />
inpatient care (2009).