State to pay debts of hospitals and Republic Health Insurance Fund to pharmaceutical companies by end-2015

Health Minister Slavica Djukic Dejanovic and Finance Minister Mladjan Dinkic had a meeting with the representatives of pharmaceutical companies operating in Serbia on Wednesday (31 October 2012), at which they expressed the state's readiness to pay the debts of the Republic Health Insurance Fund and hospitals to pharmaceutical companies, the Ministry of Finance said in a release.

The Serbian government is ready to turn all outstanding debts into a public debt and pay arrears to drug manufacturers quarterly over the period of three years starting from 2013, reads the release.

Ministers Djukic-Dejanovic and Dinkic pointed out that the state's intention was to enter the next year with all debts in the health care sector cleared as well as to introduce discipline in future payments, which would secure a stable functioning of the health care sector and ensure liquidity in the operations of of the pharmaceutical sector.

The two sides agreed on an adjustment of the state's debts with pharmaceutical companies, as well as on the write-off of 50 percent of debts for drugs delivered to hospitals and not paid in previous years. It was also suggested that all debts of the Republic Health Insurance Fund that are overdue for more than 30 days, by 31 October 2012 inclusive, should be turned into a public debt, so the Fund could enter the next year without debts.

Health Minister Slavica Djukic Dejanovic said that that ministry would do everything it can to bring order to the health care sector and improve the quality of medical services.