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Efficiency of Public Procurement in the Slovak Health Care
[Efektívnosť verejného obstarávania v slovenskom zdravotníctve]

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  • Juraj Nemec
  • Matúš Grega
  • Mária Horehájová
  • Matúš Kubák

Abstract

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.

Suggested Citation

  • Juraj Nemec & Matúš Grega & Mária Horehájová & Matúš Kubák, 2020. "Efficiency of Public Procurement in the Slovak Health Care [Efektívnosť verejného obstarávania v slovenskom zdravotníctve]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2020(1), pages 27-39.
    • Handle: RePEc:prg:jnlcfu:v:2020:y:2020:i:1:id:542:p:27-39
    DOI: 10.18267/j.cfuc.542
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    1. repec:adr:anecst:y:1999:i:54:p:06 is not listed on IDEAS
    2. Ido Millet & Diane H. Parente & John L. Fizel & Ray R. Venkataraman, 2004. "Metrics for Managing Online Procurement Auctions," Interfaces, INFORMS, vol. 34(3), pages 171-179, June.
    3. Antonio Afonso & Ludger Schuknecht & Vito Tanzi, 2010. "Public sector efficiency: evidence for new EU member states and emerging markets," Applied Economics, Taylor & Francis Journals, vol. 42(17), pages 2147-2164.
    4. Kristiaan Kerstens, 1999. "Decomposing Technical Efficiency and Effectiveness of French Urban Transport," Annals of Economics and Statistics, GENES, issue 54, pages 129-155.
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    Cited by:

    1. Beata Gavurova & Matus Kubak, 2021. "The efficiency evaluation of public procurement of medical equipment," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(3), pages 193-209, March.

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    More about this item

    Keywords

    Public Procurement; Helth care; Slovakia; Efficiency; Verejné obstarávanie; Zdravotníctvo; Slovensko; Efektívnosť;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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