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Health systems in transition

Portugal

33

a study assessing the performance of the NHS local health units

(

Unidades Locais de Saúde

) in terms of access to health care, service

quality, production, efficiency, and economic and financial performance

(ERS, 2015e).

2.4.1 Regulation and governance of third-party payers

The RHAs play an essential role in the contracting of health care providers

to work with the NHS. They are responsible, together with ACSS, for setting

up (and paying for) contracts (i.e. the contracting of private sector providers

to provide NHS patients with specific health care services) and contracts

(

contratos-programa

) with the hospitals (based on cost history, utilization and

complexity variables; see section 3.7.1,

Payment of hospitals

). RHAs are also in

charge of negotiating and signing Public–Private Partnership (P-PPs) contracts.

These follow the procedure used in the contract that established the first public

hospital under private management, signed between the private operators and

an RHA.

The delivery of diagnostic and therapeutic services by private providers to

the NHS is an area that for several years has been of concern to Portuguese

authorities. The public procurement framework of such contracting by the

NHS that has been in place since the late 1980s was responsible for a lack of

competition within this subsector and for the substantial cost to the NHS for

such services (ERS, 2006). In fact no new private providers were allowed to

contract with the NHS for some time, so the NHS was subjected to the prices of

those already contracted. These conventions are responsible for almost 10% of

the NHS total costs, which makes it a key issue with respect to cost-containment.

To tackle this problem, in 2013 the government approved a new legal

framework for private services contracted by the NHS (Decree-Law

No. 139/2013, of 9 October 2013). According to this new framework, NHS

authorities can choose whether they contract by adhesion contracts or public

tenders, and this choice must be based on the potential competition in each

relevant market (i.e. public tenders for markets with substantial number of

potential competitors for contracts with the NHS, while contracting by adhering

to pre-determined conditions, particularly prices for services, for markets with

few competitors). The rationale for this measure is to make public procurement

more sensitive to market competition and as a result, to achieve lower prices.

Health subsystems manage the provision of NHS and private sector services

through their own “contracted health care providers”.