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Economic conditions
The credit crisis and continuing financial fragility is impacting heavily on the health sector. For many countries, their ability to fund capital investment (through debt creation) is on hold for the foreseeable future with few signs of easement. Recourse to outsourcing debt to the operational level in health systems, hospitals and health institutions, for example by using PPP models to fund investment, is also high risk at a time when most governments are also seeking to incentivise reductions in the demand on expensive hospital facilities. The front line has little room for manoeuvre as the banking sector continues its risk-averse attitude towards debt creation in the public sector. This is likely to add up to a substantial increase in demand on SF funds for capital investment – as being perhaps the only remaining ‘free good’ sources of financing available. These pressures will add impetus to the need for transformational change as countries strive to reconcile rising health demands with lower levels of GDP.
