Subject: Econimic Press Monitor
From: Sarke Information Agency <[email-masked]>
Date: Wed, 29 Jan 2020 10:53:43 +0000

ECONOMIC PRESS MONITOR
January 29, 2020

1. REZONANSI: “SALARY CUT OR DISCHARGE OF EMPLOYEES – DISPUTE BETWEEN THE MINISTRY AND CLINICS REACHES PEAK”
Archil Chukhrukidze, vice-president of Georgian Cardiologists Association, says that estimate of expenses, sent by the Healthcare Ministry to clinics of the country, envisage decrease of salary expenses by 35%. Besides, many problems arise to patients, who cannot receive some services anymore, he declares.

“Already 2 months passed after [the Ministry’s] resolution #520 [introduction of unified tariffs for clinics, involved in the state program of universal healthcare], we worked and tried to reach the agreement with the Ministry, but no result is achieved so far”, Chukhrukidze points.

In her turn, the Minister Ekaterina Tikaradze claims that “upon calculation of tariffs within the resolution #520, no changes were made in terms of salaries’ payment and clinics have no reasons for salary cut”.

“Within the resolution #520, the Ministry’s obligation of payment to clinics will enter in force in May, respectively, stories, which they tell, allegedly they have to cut salaries for medical staff now, are a lie”, Tikaradze declares.

Sergo Chikhladze, expert of health sector, notes that nobody opposes tariffing, but estimate of expenses, adopted on the basis of the resolution #520, is unfair and inadequate that caused clinics to discharge staff or cut salaries (published on January 28).

2. FORBES GEORGIA: “COMPETITIVE INSURANCE SYSTEM AND CHALLENGES OF UNIVERSAL HEALTHCARE”
Author of opinion, published in the magazine’s blog (doctor of medicine Tengiz Verulava, director of Healthcare Policy Institute), considers that effectiveness of operation of the state program of universal healthcare by insurance companies is higher.

Insurance companies compete on volume and price of insurance packages, therefore healthcare expenses of the state decrease, the author indicates. Whereas in case of single payer, when the state program is operated by Social Service Agency, monitoring of expenses is weak, he notes.

Some will say that similar insurance model existed in Georgia until 2013, i.e. under ruling of National Movement, the author says, arguing that until 2013, there was no competitive insurance system. As he explains, the state divided the country into 26 insurance areas, and only one insurance company had provided services within the state program in each area.

Therefore, noncompetitive insurance system, existed until 2013, was same system of single payer, as the system of Social Service Agency, the author considers. At the same time, he indicates that introduction of competitive system in Georgia is hampered by a number of obstacles.

In particular, definite part of clinics, including those in regions, are owned by insurance companies, because of which they try to request as much as possible from the state, respectively, in such system this model is cost-ineffective, the author specifies and notes at the same time that vertical integration of pharmaceutical company, insurance company and clinic significantly degrades quality of health service.

In Georgia, both clinics and insurance companies are private profitable organizations. Whereas in the countries, where competitive insurance model operates, both profitable private and non-profitable state clinics and insurance companies exist, the author specifies (published on January 28).

3. BANKEBI DA FINANSEBI: “MAYA MELIKIDZE – CHARGING OF ELECTRIC VEHICLES IN TBILISI WILL BE POSSIBLE ON ABOUT 300 LOCATIONS”
Georgian National Energy and Water Supply Regulating Commission plans to develop this year new rules of electric vehicles’ charging.

The Commission member Maya Melikidze says that “in this part, we will consider international and European practice”. For this end, “we start now so-called twinning” (Georgian public agencies’ cooperation with respective European structures), she notes.

According to Melikidze, chargers for electric vehicles have to be installed “on about 300 locations, especially on parking places”. “Besides, they have to be [installed] also outside the city. They are installed there by the private company now, which gains income, but it will be good, if at the first stage the state worked in this term”, Melikidze declared in program Business Partner of Public Broadcaster (published on January 28).

4. BANKEBI DA FINANSEBI: “IN THE END, EVERYBODY HAS TO PAY ELECTRIC BILL – TURNAVA ON ELECTRICITY TARIFF PAYMENT BY SVANETI INHABITANTS”
Georgia’s Minister of Economy and Sustainable Development Natia Turnava points that in Svaneti, alpine region of the country, “unaccounted consumption has increased”. “At that, there were also suspicions that illegal mining [of cryptocurrency] was conducted to some extent there”, she specifies.

According to the Minister, “certain actions were held, including those by EnergoPro Georgia [regional energy distributor] with our help, and this problem will be gradually solved”.

To residents of mountain settlements of the country, Georgian government subsidizes 50% of consumer tariff, while residents of Zemo Svaneti are exempted from payment of electricity bills at all, the newspaper specifies.

The article notes that answering to the question of InterPressNews, whether residents of Svaneti will have to pay their electricity bills, Turnava said: “We take certain specifics into account, but in the end, everybody has to pay cost of electric power” (published on January 28).