in content lists or on the content page.Press release 03.06.2010
The report, published by Sitra’s Municipal Programme, introduces an alternative way of reforming the healthcare system and of resolving the diverse challenges related to the current system. The goal of the new healthcare financing and steering system model is to ensure that citizens get equal basic healthcare, corresponding to the level of current occupational healthcare.
“Finland is in a transition, and the challenge is to shift from a production-based operating method and thinking to a human- and solution-oriented service economy. Reforming the healthcare system is one of the essential factors in promoting citizens’ well-being and in Finland’s sustainable development. Our existing, production-based system is no longer enough for our diverse and pluralistic society,” says Mikko Kosonen, President of Sitra.
“To promote well-being, citizens require the public healthcare system to provide more individual and higher-quality services, and on the other hand, the aging population and the weakening of the dependency ratio put pressure onto the economy. When adopting a human-centred steering of healthcare, citizens have more freedom of choice, and on the other hand, they are expected to more actively contribute to promoting their own health,” says Kosonen.
Time for reform
“Along with the report we have published, we want to promote reform through a societal discourse and to introduce an alternative way to organise healthcare. The problems in the Finnish healthcare system culminate in the financing being based on many channels, since the majority of the financing responsibility has been decentralised to over 300 municipalities. The municipalities provide healthcare services through budget steering, which does not encourage them to develop their service production in a cost-effective way and to match the citizens’ demand,” says Antti Kivelä, Director of the Municipal Programme.
Cost effectiveness through incentives and structural changes
“The objective of the new model is to ensure that all citizens get basic healthcare which is of the same level as the current occupational healthcare for working people. At first, the increased level of healthcare services will raise expenses, but in the long term, the structural change will decrease costs and have a positive impact on the national economy. Cost effectiveness is introduced into the model by creating the incentives, and changes in the structure of the provider field. “The competence and negotiating power of the national orderer-financier in relation to the providers will lower the costs,” says Research Professor Aki Kangasharju.
In addition to taking equal care of all citizens’ healthcare needs, the proposed reform intends to increase citizens’ freedom of choice. As a result of the reform, incentives would be created for different parties for promoting health and developing treatments with a cost impact. The system also aims to remove the existing supply focus, and the multi-channel approach in financing. Moreover, the reform is expected to clarify the responsibilities of different parties within the system, and to break the barriers that have emerged within the current system.
Further information:
Antti Kivelä, Director, Sitra’s Municipal Programme, tel. +358 40 482 7435
Aki Kangasharju, Research Professor, tel. +358 40 304 5578
Kirsi Mäki, Communications, tel. +358 400 978 578
Publication details:
Report on the new healthcare financing and steering system Contributors: Timo Aronkytö, Aatos Hallipelto, Aki Kangasharju
Sitra, the Finnish Innovation Fund
ISBN 978-951-563-711-6
ISSN 1796-7112