Salary increases in hospitals: is PLN 15 billion enough?

The context of the meeting of the Parliamentary Team for Solving the Problems of "County and Municipal" Poland and the Parliamentary Team for Local Government Hospitals was clear - the increases that went into effect on July 1, and which hospitals must implement as early as August, when they pay the first indexed salaries. In order for providers to meet this obligation, in the second half of the year - starting in 2022 - the Fund increases the valuation of services and annexes contracts according to the recommendation, selected by the Minister of Health. The option signed by Minister Izabela Leszczyna is expected to cost more than PLN 15 billion annually. This year, Fund representatives said, 7.6 billion zlotys will be allocated for this purpose, which is expected to cover not only the increase in minimum salaries, but also the increase in the cost of labor for those employed on civil law contracts and other costs (such as higher utility bills). The money is also expected to be enough to increase valuations in some areas (there is an ongoing dispute over the valuation of surgical procedures).

- Currently, the provincial departments are in the process of preparing, as the implementation of this recommendation is being carried out by annexing practically all concluded contracts for the provision of health care services, and the NFZ has more than 34,000 contracts concluded with hospitals and other health care facilities that will be subject to the annexing process," informed Dariusz Jarnutowski, director of the Economic and Financial Department of the NFZ, adding that the signing of annexes is scheduled to end on July 31.

The problem is that although the Health Minister has chosen the maximum option, the amount of 15 billion zlotys per year may not be enough to cover all the costs it should theoretically cover.

Will it be enough to fund the increases? Hospitals are in the process of calculating, but from statements made during the meeting, it appears that there is enough money for the implementation of the Minimum Wages Act itself, but already for other costs that would be financed by this additional amount (including the effects of inflation) - not necessarily. Previously, hospitals estimated that the total costs they will incur from July 1 on an annual basis will oscillate around PLN 18-20 billion.

On Thursday, the Health Minister, following a meeting with representatives of local governments and local government hospitals, will announce a "roadmap" for changes in the health care system with a special focus on the hospital sector. Earlier statements by Izabela Leszczyna indicate that the emphasis will be very much on the cost-cutting aspect of the operations of these facilities.