LABORATORY MEDICINE IN CENTRAL AND EASTERN EUROPE: CAN WE CATCH UP?



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Jugoslov Med Biohem 2004; 23 (3) 299 UC 577,1; 61 ISSN 0354-3447 Jugoslov Med Biohem 23: 299 304, 2004 Stru~ni rad Professional paper LABORATORY MEDICINE IN CENTRAL AND EASTERN EUROPE: CAN WE CATCH UP? Gábor L. Kovács* Institute of Diagnostics and Management, University of Pécs and Central Laboratory, Markusovszky Teaching Hospital, Hungary Summary: Laboratory medicine, as defined by the IFCC and FESCC, is the application of chemical, molecular and cellular concepts and techniques to the understanding and evaluation of human health and disease. At the core of the discipline is the provision of results of measurements and observations relevant to the cause of disease, the maintenance of health and the conversion of these data into specific and general patient- and disease-related information at the laboratory-clinician interface. The discipline is committed to deepening the understanding of health and disease through fundamental and applied research. Furthermore, there are increasing health care expectations and consequently increasing demands of health care resources. Because of the increasing health costs, governments of many European countries have cut health care expenditure, often by decreasing the funding of acute care facilities, closing hospitals, outsourcing services or privatizing health care. Medical laboratories, highly dependent on rapidly changing, expensive and sophisticate technologies, have especially been affected by these policies. Several trends in medical laboratories are developing simultaneously: Centralization of diagnostic medical laboratories, rationalization of services, increased emphasis on cost-benefit analysis and cost-effective total patient care, linked to improving outcomes. Development of highly specialized laboratories at the interface with research. Implementation of point of care technology. Development of molecular biology procedures improving diagnosis of infections and inherited diseases. Computerization and telecommunication, which facilitates fast communication between laboratory and clinicians. Automation and robotics are changing the face of classic laboratories. A general trend towards accreditation or certification of laboratories in order to increase and recognize quality and excellence, including consultation services, pre -and post-analytical procedures. Medical laboratory specialists, whether of medical or non-medical training background, are responsible for comprehensive laboratory services including production of analytical results, consultation with clinicians, management, quality assurance, and computer technology. When possible, they conduct research and training in laboratory medicine. There are considerable differences among countries in particular between highly developed countries of the European Union and countries of Central/Eastern Europe in social, economical and health system developments, which affect the practice of medicine. The ultimate goal of laboratory specialists in the Central/Eastern European countries is to catch up with all these processes and also to reduce the gap between east and west in this respect. However, sufficient governmental financial resources are lacking as well. Thus, national laboratory societies bear a higher than ever responsibility in working out and implementing successful strategies, convincing public opinion, political opinion-leaders and the media about the importance of laboratory medicine, a discipline inevitable for successful predictive, preventive and clinical curative medicine. Key words: CEE countries, European Union, gap, clinical laboratory, service, research, training, quality, responsibility * Member-at-large Executive Board of the Forum of European Societies of Clinical Chemistry and Laboratory Medicine (FESCC)

300 Jugoslov Med Biohem 2004; 23 (3) Healthcare in the CEE countries after the political transition Western, Central and Eastern Europe have universal access health care systems. The systems in Central and Eastern Europe (CEE), however, are characterized by historical and continuing underfunding resulting in poor infrastructure and lack of staff incentives. A legacy of the communist concentration on inpatient care is the vast oversupply of hospital beds which continue to take up a disproportionate amount of the already limited healthcare budget stopping the more cost effective focus on ambulatory care and preventive medicine. The underfunding and inappropriate allocation have led to the development of a secondary healthcare market within the public system, in which the individual patient is often forced to pay from their own pocket to access a theoretically free at the point of delivery service. The efficiency and quality of care deteriorated, and ultimately the population's health status worsened. Life expectancy, for example, fell significantly throughout the CEE countries, with the greatest drop occurring in Hungary: 3.5 years from 1970 to 1990. During the same period age-standardized male mortality rates in Bulgaria, Czechoslovakia, Hungary, and Poland increased by 2 to 13 percent, compared with a decline of 12 to 27 percent in Western European countries. Between 1965 and 1989 death rates for males increased by 7 percent in the German Democratic Republic and by 13.1 percent in Hungary. Similar negative trends occurred throughout the Soviet Union as well. A substantial portion of the high death rates can be attributed to the prevalence of noninfectious diseases, such as cardiovascular and respiratory illnesses, cancer, and accidents. Highly cost-effective interventions, such as promoting healthy lifestyles, launching antitobacco campaigns, implementing anti-alcohol regulations, and so on, could have prevented most of these diseases. This clearly indicates the erroneous approach of a health care system that emphasized curative care and the prevention of infectious diseases, yet ignored the noninfectious diseases to which most of the high death rate was attributable, a typical manifestation of non-needs-based planning. The high mortality rate, along with the economic crisis and high military spending, aggravated the sharp economic downturn that started in the CEE countries in the early 1980s. The mortality rate burdened the region's economy because of the lost investment in human capital, the increased state medical expenditures, and the more general opportunity cost of lost lives. Thus, not only health care reforms were essential for improving the population's deteriorating health status, but also for reviving the economy and maintaining of international competitiveness. From 1995 to 2000, total health expenditure as a percentage of GDP shrank to 5.8 percent in the CEE countries, compared with 8.5 percent of a much higher GDP in the EU. Similarly, total per capita expenditures on health were much lower in the CEE countries and the CIS than in the EU. Over 1995 2000 such expenditures increased from $415 to $500 in the CEE countries, and from $1.680 to $1.920 in the EU. Fleshing out the patterns of health care reform across the CEE countries is a complicated endeavor. The health sector cannot be reliably regulated by purely bureaucratic, governmental coordination or by purely market coordination, but must employ a combination of the two. Governments' ability to achieve a sustainable balance between multiple health sector objectives depends on the development of an appropriate mix of supply-side interventions at the micro (institutional) and macro (system) levels. This mix should increasingly include carefully constrained role for certain market-oriented incentives as well as for traditional regulatory instruments. Viewing the early 1990s as catastrophic for their health care systems, many policymakers have attempted to make too many fundamental changes too quickly. Sometimes new policy decisions have undermined the dependency theory, that is, that every new policy, regardless of how radical a change is designed to bring about, is nonetheless built on a former system. Attempts to build a new system without taking the ramifications of the old into account tend to prove ineffective. Different countries in the region are at different stages of implementing health reforms. Many CEE countries have switched to a system based on social insurance principles. Not only do the countries vary according to how much they have advanced with respect to reforms, but they also vary in relation to the strategies they have chosen. While Bulgaria has privatized almost its entire provider sector, Lithuania has transferred health facilities to local governments, while in Ukraine these facilities still remain the property of the central government. Croatia, which had a fairly decentralized system prior to the 1990s, has attempted to strengthen the central government's role and has therefore centralized certain aspects of health service provision and financing. In still other countries decentralization is one of the key components of the reforms. Thus, talking about common policy strategies that are appropriate and applicable across the entire region is premature. There is a reasonable level of clinical competence and training in most of the CEE countries, and in some countries there are world class practitioners in certain specialties. This underlines the conclusion that the main problem regarding the reform of the health sector in CEE is not primarily the medical competence among the healthcare professionals but instead the funding allocations and financial motivation, along with the integration of the different components of health care, in order to provide the best possible care as cost efficiently as possible. This requires appropriate funding mechanisms, integrating public and private contributions.

Jugoslov Med Biohem 2004; 23 (3) 301 0.14 IVD tests, % of GDP 0.12 0.10 0.08 0.06 0.04 E, P, I Japan EEA F, D, CH USA 0.02 UK, DK, N, N HU 0.00 0 2 4 6 8 10 12 14 16 Health care, % of GDP Figure 1. Expenditure on laboratory tests and health care expenditure in the EU (EDMA statistics) 1800 1771 12 10.7 1600 10 9 8.8 US 1400 1200 1000 800 600 400 200 943 743 642 385 198 % of GDP 8 6 4 2 0 7.7 7.2 7.2 6.5 5.2 5.1 5.7 4.5 3.5 2.8 2.6 0 EU average Czech Republic Slovenia Hungary Poland Slovakia EU average Croatia Serbia/Macedonia Slovenia Czech republic Slovakia Hungary Pooland LithuaniaA Bulgaria Latvia Bosnia Aabania Romania Figure 2. Health care expenditures in the EU and in some CEE countries in 1997 (in US $/capita) The following trends can be distinguished in most countries in the region: Changing method of financing from central budgetary control to centralized insurance-based reimbursement systems. The gradual introduction of market principles between providers of care and the central insurance fund payers. Figure 3. Health expenditures as the percent of gross domestic products (GDP) in the EU and in some CEE countries An increasing acceptance that the public system will remain underfunded and therefore will be complemented with private funding and insurance. An increased involvement from employers regarding the health status of their employees. An increased awareness and demand from the public for an accessible, humane and affordable system.

302 Jugoslov Med Biohem 2004; 23 (3) Table I Major international trends in laboratory medicine Trends in international laboratory medicine (EU countries) Centralization of diagnostic medical laboratories, rationalization of services, increased emphasis on cost-benefit analysis and cost-effective total patient care, linked to improving outcomes. Development of highly specialized laboratories at the interface with research. Implementation of point of care technology. Development of molecular biology procedures improving diagnosis of infections and inherited diseases. Computerization and telecommunication, which facilitates fast communication between laboratory and clinicians. Automation and robotics are changing the face of classic laboratories. A general trend towards accreditation or certification of laboratories in order to increase and recognize quality and excellence, including consultation services, pre and post-analytical procedures. Trends in laboratory medicine (CEE countries) Cheap labour costs, relatively expensive instrumentation, reagents. No capital to invest. Cost-effective laboratories instead of cost-effective total patient care. The same tendency, especially in the University settings. However, these laboratories often do not function as nation-wide reference laboratory centers. Low interest for research in the young generation. Clinical pressure often extremely high. Key issues of POCT implementation yet to be cleared: education, budget, data recording (LIS), and quality assurance. 5 10 years of delay. Lack of guidelines and protocols. Occasional mismanagement by various for-profit organizations (mass production of unnecessary test results). New cost elements without additional budget. 5 10 years of delay. Large gap between the technical level of small and big laboratories. Laboratory often in a»subordinate«position to clinicians in communications. No experience with E- health. Automation: quite some progress (clinical chemistry, hematology, immunoassay, coagulation, microbiology). Robotics: too early. Quite some progress in some countries (Baltic Countries, Czech Republic, Hungary, Slovenia). A gradual increase in life expectancy to Western European levels, which will substantially increase demand for health services. One of the problems among many in the communist era health care systems of CEE countries was the relatively small amount of funding that was provided by the state to finance health care. This is a legacy that has started to be addressed in some of the countries, most notably in the Czech Republic, but still causes large problems. The lack of funding is compounded by the fact that many of the inputs for health care, from pharmaceuticals to diagnosis equipment cost the same if not more in CEE than they do in Western Europe, and so are a much larger percentage of the funding than in Western Europe. This leaves even less funding in real terms than the headline GDP % dedicated to health care. A clinical laboratory unit costs very much the same to buy in Warsaw, as it does in Hamburg. The CEE governments have also set as key objectives joining the Euro zone, with the fiscal disciplines that the Maastricht treaty imposes and making their countries tax friendly environments for business investment and entrepreneurs. These objectives are contrary to increasing the allocation of tax revenues to state health care. None of the CEE governments have woken up to these inherent conflicts and problems, and in none of the countries have the governments actively set out to seek private financing for the short fall between state financing and the public's health care expectations. The most progressive environment for this dual type of system is unexpectedly Lithuania, where private and employer contributions to private health coverage schemes are fully tax deductible and not taxed as a benefit to the employee, and not subject to payroll taxes. In addition, Lithuania has provided an environment that minimizes the hidden taxation of health care services that comes with an exempt value added tax rate, and provided for health care provision to be treated as a zero rated activity. If CEE governments had the insight to really understand the inherent unsolvability of their state health care system's problems they would be queuing up to follow Lithuania's enlightened lead. Laboratory medicine in the CEE countries Laboratory medicine, as defined by the IFCC and FESCC, is the application of chemical, molecular and cellular concepts and techniques to the understanding and evaluation of human health and disease. At the core of the discipline is the provision of results of measurements and observations relevant to the cause of disease, the maintenance of health and the conversion of these data into specific and general patient-

Jugoslov Med Biohem 2004; 23 (3) 303 and disease-related information at the laboratory-clinician interface. The discipline is committed to deepening the understanding of health and disease through fundamental and applied research. Furthermore, there are increasing health care expectations and consequently increasing demands of health care resources. Because of the increasing health costs, governments of many European countries have cut health care expenditure, often by decreasing the funding of acute care facilities, closing hospitals, outsourcing services or privatizing health care. Medical laboratories, highly dependent on rapidly changing, expensive and sophisticate technologies, have specially been affected by these policies. Laboratory tests are among the most important and pervasive aspects of modern medicine. The College of American Pathologists estimates that»laboratory services drive 80 percent of clinical decisions from diagnosis through therapy and prognosis.«europe has an opportunity now to increase spending on in vitro testing in order to raise standards of health and ensure effective treatment in health care. This opportunity arises due to the following factors: Concerned individuals in the general population are learning (often via the Internet) about the information that in vitro tests can provide regarding risks of disease, state of health and effectiveness of treatment. Health policy must open up to the popular demand for information that is developing. New technologies such as genetic testing will have a positive impact on health and the shift towards prevention of disease. Apart from informational value in individual decisions about health and life style, genetic testing will allow selection of patients to suit existing drugs that may have unacceptable side effects in the general population as well as selection of new drugs to suit patients that have the necessary receptors on which the drugs exert effects. Health Technology Assessment is being used to assess the medical utility of health care technologies in given clinical situations. In vitro testing provides objective information is an essential element in HTA. However, it is important that HTA is not misused outside the medical application in health care to deny access to technologies that give individual benefit. The existing low regional expenditure on in vitro testing compared with the US and Japan, must be increased to ensure that the diagnosis is correct, that the treatment given is monitored for effectiveness and to increase the weight of preventive medicine in health policy. Modernization and increases in health care spending in Central and Eastern Europe and the need to emphasize diagnosis in these countries will provide steady increases in the amount of in vitro testing in these countries. Globalization of commerce and tourism and other larger scale enterprises (e.g. in agriculture) increase the risk of spread of diseases. The IVD industry is the major supplier of tests not only for human medicine, but also veterinary, food and environmental tests. It is vital that a viable IVD industry exists to respond quickly to new threats (as it did for HIV testing). Medical laboratory specialists, whether of medical or non-medical training background, are responsible for comprehensive laboratory services including production of analytical results, consultation with clinicians, management, quality assurance, and computer technology. When possible, they conduct research and training in laboratory medicine. There are considerable differences amoing countries in particular between highly developed countries of the European Union and countries of Central/Eastern Europe in social, economical and health system developments, which affect the practice of medicine. The ultimate goal of laboratory specialists in the Central/Eastern European countries is to catch up with all these processes and also to reduce the gap between east and west in this respect. However, sufficient governmental financial resources are lacking as well. Thus, national laboratory societies bear a higher than ever responsibility in working out and implementing successful strategies, convincing public opinion, political opinionleaders and the media about the importance of laboratory medicine, a discipline inevitable for successful predictive, preventive and clinical curative medicine.

304 Jugoslov Med Biohem 2004; 23 (3) LABORATORIJSKA MEDICINA U CENTRALNOJ I ISTO^NOJ EVROPI: MO@EMO LI JE DOSTI]I? Gábor L. Kovács Institute of Diagnostics and Management, University of Pécs and Central Laboratory, Markusovszky Teaching Hospital, Hungary Kratak sadr`aj: Laboratorijska medicina, kako je defini{u IFCC i FESCC, je primena hemijskih, molekularnih i celularnih pristupa i tehnika za razumevanje i procenu zdravlja i oboljenja kod ljudi. Sr` discipline je obezbe ivanje rezultata merenja i posmatranja odgovaraju}ih uzroka oboljenja, odr`avanje zdravlja i prevo enje ovih podataka u specifi~ne i op{te informacije koje se ti~u pacijenta i oboljenja u komunikaciji laboratorija-klini~ar. Disciplina je orjentisana potpunom razumevanju zdravlja i oboljenja primenom fundamentalnih i primenjenih istra`ivanja. Ovo zahteva ulaganje velikih materijalnih sredstava kako bi se postigli `eljeni ciljevi. Zbog pove}avanja tro{kova le~enja, vlade mnogih evropskih zemalja su smanjile potrebne izdatke za zdravstveno zbrinjavanje, {to ide preko zatvaranja bolnica i privatizacije istih. S druge strane medicinske laboratorije u velikoj meri zavise od visoko sofisticirane tehnologije. Iz navedenih razloga u medicinskim laboratorijama istovremeno se razvijaju slede}i pravci: Centralizacija dijagnosti~kih medicinskih laboratorija, racionalizacija slu`be, Razvoj visoko specijalizovanih laboratorija koje se oslanjaju na istra`ivanje, Primena»point-of-care«tehnologije, Razvoj procedura molekularne biologije, {to pobolj{ava dijagnozu infektivnih i naslednih oboljenja, Kompjuterizacija i telekomunikacija sa pobolj{avanjem brze komunikacije izme u laboratorije i klini~kih odeljenja, Automatizacija i robotika menjaju lice klasi~ne laboratorije, Op{ti stav prema akreditaciji ili sertifikaciji laboratorija da bi se pove}ao kvalitet uklju~uju}i sve faze rade, pre- i post-analiti~ke procedure i konsultacije. Medicinski laboratorijski specijalisti, bilo da su medicinske ili ne-medicinske orjentacije su odgovorni za celokupan rad laboratorijske slu`be uklju~uju}i izradu analiti~kih procedura, konsultacije sa klini~arima, menad`ment, osiguravanje kvaliteta i kompjutersku tehnologiju. Kad god je to mogu}e u laboratorijama treba da se odvijaju istra`ivanje i edukacija iz oblasti laboratorijske medicine. Postoje o~igledne razlike izme u pojedinih zemalja i to naro~ito visoko razvijenih zemalja Evropske Zajednice i zemalja Centralne i Isto~ne Evrope i to u socijalnom i ekonomskom pogledu {to uti~e na razvoj i primenu medicine. Iz ovog razlog cilj laboratorijskih specijalista u ovim zemljama je da dostignu `eljeni napredak kako bi se razlike izme u zapada i istoka umanjile. Me utim, neodostatak finansijskih sredstava ograni~ava ovaj napredak. Klju~ne re~i: CEE zemlje, Evropska zajednica, razlike, klini~ka laboratorija, slu`ba, istra`ivanje, edukacija, kvalitet, odgovornost References Suggested reading (web-pages): 1. FESCC: www.fescc.org 2. IFCC: www.ifcc.org 3. Shakarishvili, G. Curing sick healthcare systems in transition countries. 4. European Diagnostic Manufacturing Association (EDMA): www.edma-ivd.be 5. Health Care Systems in Transition. European Observatory on Health Care Systems (e68317.pdf). 6. Medicover Annual Report 2002 (The annual report 22 april 2003.pdf). 7. Second ECA Poverty Forum, 2001, Budapest (who is paying.pdf). 8. Eurostat Report 2003 (eurostatapril2003.pdf). 9. Europa. The European Union On-Line (www. europa.eu.int) 10. OECD Recent Publications. www.oecdwash.org 11. World Health Organization. www.who.org Received: October 10, 2003 Accepted: March 9, 2004