1. bookVolume 12 (2018): Issue 1 (May 2018)
Journal Details
License
Format
Journal
First Published
15 Dec 2017
Publication timeframe
1 time per year
Languages
English
access type Open Access

The internalization context of private health service providers in Europe: Romanian market case study

Published Online: 15 Jun 2018
Page range: 1038 - 1047
Journal Details
License
Format
Journal
First Published
15 Dec 2017
Publication timeframe
1 time per year
Languages
English

This paper looks at the opportunities and constraints of the private healthcare sector in Europe today. Using the case study of Romania, I explore the attractiveness of foreign and domestic private capital investments in companies that supply healthcare services. In the aftermath of the economic crisis, the private provision of healthcare services has been growing steadily, and there are clear signs in the common market that the liberalisation policies will only increase the attractiveness of such investment still. As large-scale investment projects like general hospitals require large amounts of upfront investment, it is only natural to assume that at least part of this capital will be obtained through internationalisation decision of foreign companies. This paper also presents in depth a comparative overview of the two most developed private healthcare provisions in Romania: dialysis centres and medical laboratories. Part of their success is due to their longstanding relationship with the National Health Insurances House. These medical services generally benefit from large scale public subsidies that support the delivery of private health care provision in Romania. The private providers of medical services in Romania have recorded a steady annual growth dynamics over the past years. In the case of private medical laboratories, the geographical distribution shows a heavy concentration on the main municipalities in Romania. This gives us a perspective on the limited ability of private providers to penetrate smaller markets without the incentive of public subsidies. The Romanian market has proved to be an attractive destination for foreign investors in the medical sector. This is driven in part by the quantitative limitations of the public sector that is struggling with an overload in urban areas, but also by the attractiveness of private health insurance packages offered by many private health care providers. The main international health care providers in Romania that constitute the case studies of this paper are: Medlife, Regina Maria, Medicover, Sanador and Gral Medical.

Keywords

Crespy, A., & Menz, G. (2015). Commission Entrepreneurship and the Debasing of Social Europe before and after the Eurocrisis. JCMS: Journal of Common Market Studies, 53(4), 753-768.Search in Google Scholar

Goschin, Z., Constantin, D. L., Roman, M., & Ileanu, B. V. (2009). Specialisation and concentration patterns in the Romanian economy. Journal of applied quantitative methods, 4(1), 95-111.Search in Google Scholar

Hermann, C., & Flecker, J. (Eds.). (2013). Privatization of public services: impacts for employment, working conditions, and service quality in Europe. Routledge.Search in Google Scholar

Horobeţ, A. Popovici, O. (2017) Investit iile stra ine directe Evolut ia s i important a lor n Roma nia, Foreign Investors Council (FIC) Study, accessible at http://www.fic.ro/Documents/view/Studiu-Investitiile-straine-directe-evolutiasi-importanta-lor-in-RomaniaSearch in Google Scholar

Jaehrling, K. (2015). The state as a ‘socially responsible customer’? Public procurement between market-making and market-embedding. European Journal of Industrial Relations, 21(2), 149-164.Search in Google Scholar

Karanikolos, M., Mladovsky, P., Cylus, J., Thomson, S., Basu, S., Stuckler, D. & McKee, M. (2013). Financial crisis, austerity, and health in Europe. The Lancet, 381(9874), 1323-1331.Search in Google Scholar

Mori, A. (2015). Outsourcing public services: local government in Italy, England and Denmark. The outsourcing challenge, 137.Search in Google Scholar

Nikolic, I. and Maikisch, H. (2006) Public-Private Partnerships and Collaboration in the Health Sector: An Overview with Case Studies from Recent European Experience. Health, Nutrition and Population (HNP) Discussion Paper, World Bank Publications.Search in Google Scholar

Preker, A. S., & Feachem, R. G. (1995). Market mechanisms and the health sector in Central and Eastern Europe (Vol. 293). World Bank Publications.Search in Google Scholar

Saltman, R. B., Figueras, J., & Sakellarides, C. (1998). Critical challenges for health care reform in Europe. McGraw-Hill Education (UK).Search in Google Scholar

Volintiru, M. (2016) The Role of the Private Sector in Delivering Public Health Services in Romania, Paper prepared for the „Competition and Competitiveness in European Regions and Cities” Workshop, 19th -20th of May 2016, ASE, BucharestSearch in Google Scholar

Volintiru, M. (2017) International Standards and Private Health Services in Romania. EGE 2017 Conference PaperSearch in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo