Perestrojka in the Dutch health care system: A demonstration project for other European countries

Abstract

The Dutch government and parliament have recently decided to radically reform the Dutch health care system. Direct government control over prices and productive capacities will have to make way for regulated competition among insurers and among providers. There appear to be some similarities between economic problems associated with the perestrojka in Eastern Europe and the perestrojka that is taking place in the Dutch health care system. In both cases serious problems may arise as the result of the absence of consumer information, the absence of cost-related prices, the absence of antitrust policy, and the absence of market-oriented management. Each of these issues will be discussed. It will be concluded that other - Western or Eastern - European countries can learn interesting lessons from the demonstration project that is taking place in the Netherlands.