While Mihály Varga, the Minister of Finance, only hinted last week at the government's intentions to address hospital debts by stating they were exploring possibilities, Népszava has learned that a decision has essentially been made. According to this decision, the government will in two installments by summer settle approximately 104 billion forints of debt. It is understood that the first installment, amounting to about 64 billion forints, will be transferred within a month, with an additional 40 billion forints to follow in June to the accounts of healthcare institutions. Strict conditions are attached to these payments, requiring that the first installment primarily clears the accounts of state suppliers, including energy providers. Consequently, medical equipment suppliers and pharmaceutical companies may once again be deprioritized.

By the end of March, the debt of healthcare institutions – including universities and church institutions – was almost 110 billion forints. While in 2023, the debt increased by an average of 3.7 billion forints per month, it is expected to grow by 20 billion forints monthly in 2024.

Peter Takács, the State Secretary, had previously indicated on several forums that he would eliminate the constant indebtedness through restructuring financing. Plans for this, costing around 100 billion forints, have reportedly been presented to the government. However, the government has for now rejected this solution due to its cost.

"The management of hospital debts poses a particularly heavy burden on pharmaceutical suppliers," highlighted Antal Feller, former CEO of Hungaropharma and president of the Association of Pharmaceutical Wholesalers (GYNSZ), at the weekend meeting of the Hungarian Chamber of Pharmacists. He observed that the debt consolidation at the end of last year did not significantly reduce the debts, which then accelerated early this year.

Referring to the increasingly frequent drug shortages, Feller discussed improving drug supply through cooperation between various sectors - government, suppliers, and distributors.

He reminded that drug shortages have been common since the Covid pandemic, with 247 products added to the shortage list in Hungary over the past 12 months. Six of the top 20 active ingredients are concurrently in short supply in more than ten other European countries, presenting a considerable challenge to acquisition. Despite these challenges, 33% of shortages in Hungary were resolved in less than a month. He suggested that preventing extra purchases, for example, by providing timely and clear information to doctors and pharmacists on what is in short supply, alternatives, and treatment adjustments, would ease the resolution of drug shortages. "We are in a difficult situation since if we filter and delay the information about shortages and pass it on, it might do more harm than good," Feller said, implying that news of shortages immediately triggers mass buying.

In case of a shortage, wholesalers look for alternative sources, which are typically more expensive. Generally, wholesalers procure drugs directly from manufacturers or their representatives, but during shortages, they may need to buy from resellers.