Calm before the storm
- Healthcare providers
- Sustainable change
This study presents the good performances of elder care institutions. Since 2009, revenue has not been growing faster than inflation plus growth from the aging population, the sector has healthy profit margins and assets have been significantly strengthened.
However, in light of the recent coalition agreement, these quiet years may just be the calm before the storm. The agreement will lead to the sector contracting, which is unprecedented in the history of elder care. The simultaneously planned transfer of care to municipalities will bring extra challenges.
In this study, we describe a number of strategic consequences for healthcare providers and the government. Healthcare providers will have to adapt their ways of thinking to come up with new solutions during this time of contraction. We also reflect on the great variation between municipalities in healthcare consumption. This will complicate budget allocation but, at the same time, offers an opportunity to address undesirable variations in regional practices. The drawbacks of implementation by municipalities is another subject addressed in this study, in particular sky-high administrative expenditures, which under the WMO law are now over 10% compared to 1.5% under the AWBZ law. Working together with healthcare administration offices or health insurance companies could offer an effective solution.