Privatisation in Public Health Care System

Abstract:

Public health protection is one of primary social needs. It is also considered to be a significant component determining public interest issues. Further specification of these issues demands including medical and economic criteria. The importance of these criteria varies depending on the type of medical goods/services provided within a certain services market (public, club, social, market goods). These markets require effective regulations. Health care systems include both public sector entities, as well as private sector entities. Cross-sector proportions are different for particular countries and change simultaneously with socio-economic development processes. Privatisation processes performed within privatisation market regulated by the state are indispensable at a defined level of development. The objective of this article is emphasizing the significance of a certain privatisation pace and factors determining this pace through modelling processes. This research is aimed at creating a model of the state assets privatisation pace, including privatisation limits. Healthcare system demands permanent and variable in time responses to questions concerning substitutability and complementarity ranges of ownership sector. These ranges result from the demand to reduce the sum of direct and indirect costs, as well as transaction costs under possibly high medical services quality.

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