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The Efficiency Of Public Procurement In The Health Sector – The Platform On Sustainable Public Finances

Author

Listed:
  • Beata GAVUROVA

    (MBA, Center for Applied Economic Research, Faculty of Management and Economics, Tomas Bata University in Zlín, Zlín, Czech Republic)

  • Matus KUBAK

    (Technical University of Kosice, Kosice, Slovak Republic)

  • Martin MIKESKA

    (Department of Economics, Faculty of Management and Economics, Tomas Bata University in Zlín, Zlín, Czech Republic)

Abstract

At present, public procurement processes and their efficiency represent one of the key determinants of public finance system. Many countries of the European Union work intensively on reforming public procurement processes. The main aim of public procurement is to create an open competition in order to achieve the most efficient use of public funds. The Slovak hospitals, that have been inefficiently managed in the long run, are the weakest segment of the healthcare system. Also, the public hospitals continue to generate substantial losses even if many reforms had been implemented to increase cost efficiency. However, medical debt consolidation did not help the hospitals to set optimal functioning of the economic processes in order to improve their management permanently. The primary aim of the study is to examine an impact of selected determinants on an efficiency of public procurement processes in the healthcare system of the Slovak Republic during the 2014 – 2017. The data were obtained from the registers of the Public Procurement Office of the Slovak Republic. The multinomial logistic regression was used to determine the following findings: in case of zero, or positive savings, the number of offers, year of public procurement, type of public procurement procedure, NUTS level of procurement and participation of a subcontractor in procurement process are significant categorical variables. The study results enable a creation of multi-dimensional analyses and support models in order to make effective public procurement processes in the healthcare system. Similarly, these results enable to create comparative benchmarking analyses, and may lead to a creation of new agencies and institutions.

Suggested Citation

  • Beata GAVUROVA & Matus KUBAK & Martin MIKESKA, 2020. "The Efficiency Of Public Procurement In The Health Sector – The Platform On Sustainable Public Finances," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2020(35), pages 21-39, December.
    • Handle: RePEc:rom:rampas:v:2020:y:2020:i:35:p:21-39
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    References listed on IDEAS

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    1. Andrey Berezin & Bruno S. Sergi & Natalia Gorodnova, 2018. "Efficiency Assessment of Public-Private Partnership (PPP) Projects: The Case of Russia," Sustainability, MDPI, vol. 10(10), pages 1-18, October.
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    4. Paulina Ucieklak-Jeż & Agnieszka Bem & Rafał Siedlecki & Paweł Prędkiewicz, 2018. "Concentration of Hospital Infrastructural Resources as a Source of Inequalities in Access to Health Care Benefits in Poland," Springer Proceedings in Business and Economics, in: Agnieszka Bem & Karolina Daszyńska-Żygadło & Taťána Hajdíková & Péter Juhász (ed.), Finance and Sustainability, pages 1-10, Springer.
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    Cited by:

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    2. Ewa Cichowicz & Ewa Rollnik-Sadowska & Monika Dędys & Maria Ekes, 2021. "The DEA Method and Its Application Possibilities for Measuring Efficiency in the Public Sector—The Case of Local Public Employment Services," Economies, MDPI, vol. 9(2), pages 1-13, May.

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    More about this item

    Keywords

    public procurement; public contract; savings; sector efficiency; healthcare system efficiency; sustainability of public finances.;
    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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