Background Briefing Hungary’s Healthcare System

In the aftermath of communist rule, Hungary transformed its healthcare system from centralised Semashko state control to a more pluralistic, decentralised model. Contracts between local governments and providers have replaced direct ownership, and privatisation within healthcare has grown since 1989. Influenced by both the French and German healthcare systems, funding is now predominantly through social insurance. But has recent decentralisation benefited the health of the Hungarians, who perhaps surprisingly have the lowest life expectancy in Eastern Europe (1)? Is the system designed to serve the interests of the patients? Does the system work for patients? To address these questions, we will briefly examine Hungary’s system in the context of visibility of patient’s contributions, method of insurance collection and allocation, physician incentives, hospital ownership, and system inequalities. Financing and Patient Contributions Hungary’s healthcare system is financed through the Health Insurance Fund (HIF), which is primarily responsible for recurrent health care costs. The HIF collect