D20 - Production and Organizations: GeneralReturn

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Competition in public procurement in the Czech healthcare system and its impact on the final price

Mária Horehájová, Milan Křápek, Juraj Nemec

Český finanční a účetní časopis 2021(1):23-35 | DOI: 10.18267/j.cfuc.553

Due to the growing volume of public procurements in the Czech Republic every year, the topic of their quality setting and the achieved result is extremely relevant. One of the important qualitative criteria of public procurement (PP) is the degree of competition, which, as domestic and foreign studies show, affects the final, competitive price of PP. In our article, we focused on the relationship between the degree of competition and the achieved savings from PP in the Czech healthcare system in the period from 2014 to 2019. Our analysis confirmed a statistically significant inversely proportional relationship between the number of offers and the final price achieved through PP. A negative finding is the fact that the number of offers and thus the level of competition in the Czech healthcare system has been declining since 2014, which is related to the growing number of PPs with one offer.

Efficiency of Public Procurement in the Slovak Health Care

Juraj Nemec, Matúš Grega, Mária Horehájová, Matúš Kubák

Český finanční a účetní časopis 2020(1):27-39 | DOI: 10.18267/j.cfuc.542

Increased efficiency of public procurement represents one of key factors of functional public finance. Slovak health care is the example of a service delivery area, suffering from permanent financial problems – improved public procurement would serve as one of tools to cope with them. The goal of this paper is to analyse the current situation of the public procurement in the Slovak health care system. We map both technical and allocative efficiency dimensions. The research sample represents all procurement cases of health care institutions in Slovakia for the period 2014 - 2019 (2141 cases). We also mapped in very detailed way all purchases of health technologies by Slovak hospitals in 2017 (11 cases). Our results mirror the core problems of the system. Efficiency is limited because of limited competitiveness (the potential of competition to achieve economy and efficiency is not utilised), because of the excessive use of the lowest price selection criterion and because of the fact that procurements are prepared without necessary ex-ante analysis of effectiveness of the planned purchase.