Israel's 1998 Budget And Moves To Health Reforms

In Israel, health is "becoming a macroeconomic issue, and the problemswhich could arise in the health area are of such a size that they require continuous solutions," says David Milgrom, head of the Treasury's Budgets Division.

An additional budget of 500 million shekels ($141.8 million) is intended for updating health care services, including geriatric hospitalization and increased physician and nursing staff.

The Treasury has indicated its desire for changes to the National Health Insurance Law, which, says Mr Milgrom, "creates a lack of efficiency and motivation for the sick funds to balance their budgets. The root of the problem is that on the one hand, the NHIL gives the funds the responsibility to provide the services, but on the other hand, it takes from them, by virtue of almost full 'nationalization,' the crucial degrees of freedom. In this situation the funds show apathy, as they have been turned into subcontractors of the government. The consequence is the creation of deficits which are rolled over to the door of the government."