This paper investigates the trends
in business activity of the private health care sector in Croatia from 2011 to
2018. Databases of Croatian provider of financial and electronic services - Financial
Agency (FINA) - have been employed to explore key performance indicators of
private health care sector companies, in particular trends in total employment,
business revenues and operating profits. In addition, the most important
features of voluntary health insurance (VHI) provided by private health
insurance companies and the Croatian Health Insurance Fund (HZZO) have been
presented. Furthermore, this paper provides both a relevant analysis of the
private health care sector as well as private spending on health care in
Croatia. The results indicate that users of health care services are willing to
pay more to gain faster access and higher quality services. In 2018,
expenditures for private health care services reached almost HRK 5 billion.
Nearly 60% were out-of-pocket (OOP) payments and 40% were paid through the VHI.
Despite the persistent recession, the private health care sector in Croatia
experienced an average annual growth rate of 10% in the analysed period. More
recently, the trend of introduction of more complex services within private
providers can be observed indicating the rise in investments, and
competitiveness. In conclusion, private health care sector’s presence in
Croatia is a reality that should be addressed adequately. Original findings in
this paper might serve as starting point for future discussions regarding the
private health care sector role in the overall health care system financing.
The paper brings a deeper insight into Croatian private health care sector
market using original and most recent microdata thus shedding the light on
important part of our health economy. Nevertheless, paper has certain limitations
that are mainly reflected in relatively narrow set of indicators used in private
health care sector business analysis. This though might be addressed properly
in future research.