FINANCING METHODS OF HEALTH SYSTEM AND ALLOCATION FINANCIAL RESOURCES TO HEALTHCARE ENTITIES IN REPUBLIC OF NORTH MACEDONIA
FINANCING METHODS OF HEALTH SYSTEM AND ALLOCATION FINANCIAL RESOURCES TO HEALTHCARE ENTITIES IN REPUBLIC OF NORTH MACEDONIA

Summary/Abstract: The health system in the Republic of North Macedonia is a complex system set up and structure as in the most countries from the former Socialist Federal Republic of Yugoslavia. Health activities are performed at the primary, secondary, and tertiary level of health care. The network at the primary and the secondary level of healthcare is divided into separate geographical areas, which can cover one or more municipalities. Tertiary healthcare includes specialized treatments for cases diagnosed and referred from primary and secondary healthcare levels that could not be treated in the institutions of those levels. The system for financing of healthcare is of crucial importance for the functioning of the healthcare system. The financing problem that arises relates to the increasing growth of healthcare expenditure, while the sources of funding remain limited. Financial resources for the health activities are provided by the budget of the Health Insurance Fund. Generally, healthcare in the Republic of North Macedonia has a stable financing system, but the main problem is inefficient organization and management, oversized institutions in terms of personnel and infrastructure. Since 2009, with the introduction of the diagnostic related group system, financing of hospitals is increasingly linked to hospital results, which has led to a large financial deficit in hospitals, as they provide more services than they receive funds for. The only positive fact is that the budget provided for healthcare is increasing every year. Public-private partnership in North Macedonia is very limited to one project and one ongoing initiative.

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