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Contracts with State Owned Enterprises in the National Health System

Author

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  • Luis Cracel Viana
  • Luis Gomes Centeno

Abstract

In this occasional document, the authors show that the National Health Service (NHS) management, despite using some of the tools considered state-of-the-art in the sector, is hampered by the increasing complexity of the planning system. More than half of the amount of the expected transfer provided by the State Budget (OE) to the NHS is intended for the programme contracts process with state owned enterprises integrated into the NHS. Contracts do not, however, make a correct correspondence between contracted services and financial needs, considering, for example, expected losses as a source of financing. Thus, as in the budget preparation phase itself a negative net result (a deficit) is expected, the cyclical need for discretionary financial injections by the Ministry of Finance (MF) is structural, promoting hospital management discredit and unaccountability.

Suggested Citation

  • Luis Cracel Viana & Luis Gomes Centeno, 2019. "Contracts with State Owned Enterprises in the National Health System," CFP Occasional Papers 02/2019, Portuguese Public Finance Council.
    • Handle: RePEc:alf:opaper:2019-02
    Note: This publication is only available in Portuguese.
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    File URL: https://www.cfp.pt/en/publications/other-publications/contracts-with-state-owned-enterprises-in-the-national-health-system
    File Function: First version, 2019
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