Changes in Healthcare System Allocation to Promote Equality between Center and Periphery: Is it for Real?
Author: Dov Chernichovsky Policy Research

Since the beginning of the year a new capitation formula has been in place for allocation of some NIS 27 billion to the healthcare system in Israel.

This represents about 80 percent of the total public budget for financing medical services in Israel – the services given by the sick funds. The new formula is intended primarily to narrow the growing gaps between the Center and the periphery geographical regions. This much needed change would bring additional money and resources to the periphery. Unfortunately, the implementation of this change will not bring relief to the periphery mainly because it is not based on the representation of the different sick funds in the periphery, on their ability to compete, and their ability to move resources from the Center to the periphery while expanding their services.

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