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Lack of cooperation betwen countries resulting in higher prices in those weaker at bargaining -a good point I never thought of.

However, here are some critical notes.

  • There are some further factors why medicine is more expensive here. One is PPP: these drugs are imported with the normal exchange rate, but our money is less worth (i.e., say, if you exchange as much Euros as you'd spend on food for a month in Vienna for levs, you could buy food for two or three months in Sofia).
  • The discounts a phamraceutical company itself gives and the social discount a welfare state gives are very different things - the latter is paid in the end to the pharmaceutical by the state. To do an European levelling on the latter front, we'd need an EU-wide welfare redistribution framework, not common negotiation with pharmaceuticals. (I would favour it, though.)
  • That spending on medicines is lower as a percentage of GDP (and not just in absolute per capita numbers) in countries of our region is not a fault of anyone in the West: that damns the priority-setting of our governments.
  • I think comparing healthcare in our region and Western Europe is not a simple thing. While doctors are overworked and less nice, and hospitals and equipment looks aged, in some countries it is still more comprehensive than in Western Europe, waiting lists are shorter and required in less cases.
  • Same for (Western) Europe and the USA. In the USA, as others told, there are strong class differences in the level of treatment people get. But every statistics shows that overall, the US level of service is lower, while it is more expensive. Some studies that I saw quoted here on ET pointed mainly at private insurers' administrative costs as reason, but I think a rush to provide profitable (expensive) services even if they aren't necessary (plastic surgery etc.) also plays a role. (Fat suction is more profitable than healing AIDS in the Third World.)
  • The only field where the European and American healthcare markets are in competition is top-end luxury treatment for jet-set millionaires. That is too small a market to spoil the system at the damage of the overwhelming majority. For the above reasons too, I don't want to see a healthcare 'market' - I want healthcare to be public service.


*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Mon Feb 13th, 2006 at 06:04:38 AM EST
I forgot another important point up front:

* The poor health of the populations in our region also reflect a more unhealthy lifestyle (which also leads to increased demand for medicines relative to the West). Public authorities could battle this with preventive measures (not budget increases).

Furthermore, notes on two specific countries I know:

  • In Slovakia, the outgoing government acted as a neoliberal avantgarde, and the worst and most clearly hated of its 'reforms' was the elimination of social supports and privatisation in healthcare. The number you quote reflects that - in fact, many poor Slovakians just don't buy medicines anymore. This is the reason left-populist parties are now in wide majority in polls.

  • In Hungary, the main problems in healthcare (beyond the unhealthy lifestyle) are the underfunding of hospitals and, even after social discounts, the price of medicines for retirees. But hospital privatisation was averted for the time being, and at the moment the two main parties compete with promises to further increase supports.


*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Mon Feb 13th, 2006 at 06:18:18 AM EST
[ Parent ]
Dodo, thank you for the feedback and the important comments you made on the problem. I couldn't agree more with you. If anyone is also interested in borader health issues, "Transparency International" released its Global Corruption Report. It is mainly about corruption in the health sector.

And I wish everyone to stay healthy:-)!

I can resist anything but temptation.- Oscar Wilde

by Little L (ljolito (at) gmail (dot) com) on Mon Feb 13th, 2006 at 06:54:49 AM EST
[ Parent ]
Little L: excellent diary! Top of the charts! But I would also challenge the statement that the US has the best medicine. I think this really bears more digging into, though I would be hard pressed to say how you could compare systems, beyond anecdotal statements...

"Once in awhile we get shown the light, in the strangest of places, if we look at it right" - Hunter/Garcia
by whataboutbob on Mon Feb 13th, 2006 at 01:09:39 PM EST
[ Parent ]
Thank you for saying that, whataboutbob, and for encouraging my first efforts to put a diary together. I will later give my reasons why I believe American healthcare is generally better than European (it's personal experience above everything else).

I can resist anything but temptation.- Oscar Wilde
by Little L (ljolito (at) gmail (dot) com) on Mon Feb 13th, 2006 at 01:54:11 PM EST
[ Parent ]

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