Application Areas of the Shared Service Concept within the Romanian Health System

Abstract

The Romanian healthcare system can be characterized by chronic under financing, leading to poor services towards the patients, corruption and high debts of the public institutions towards their suppliers. In order to cope with the situation, the Romanian state approved in 2010 the emergency ordinance 48/2010 on the decentralization of the health systems. Due to this legislation more than 370 hospitals across the country had been transferred under the administration of local public administration officials, whereas only roundabout 60 hospitals remained under the control of the Ministry of Health. As a consequence, local authorities have to familiarize themselves with questions concerning the proper management of the assigned hospitals. The present paper explores the different application areas of the shared service concept and the benefits this concept can add to the healthcare system. Three areas from the administration and from the operative function of the hospitals had exemplarily been selected in order to demonstrate the potential of shared services in terms of reducing the existing costs, while increasing the quality and performance of the services in question. In order to provide a holistic picture, possible disadvantages are highlighted and explained. The paper concludes that the benefits of the shared service concept can counterbalance the possible negative aspects and support the Romanian health system in overcoming this crisis and improve overall performance.Healthcare, Local Public Services, Shared Services, Contracting out, Privatization