THE PROCEDURE OF FINANCING THE NATIONAL BLOOD SERVICE OF LATVIA

Zane Mistre, Ilva Rudusa, Anda Zvaigzne

Abstract


Abstract

The National Blood Service of Latvia is a set of regional medical institutions and their structural units in Latvia that produce blood components and supply them to medical institutions. The paper characterises the procedures and ways of financing the institutions preparing blood and blood components – the State Blood Donors Centre and the Blood Establishments – that are included in the National Blood Service of Latvia and analyses their cash flow and changes in it during the period 2005-2010. Hierarchically, the State Blood Donor Centre and the Blood Establishments, in which the holder of share of capital stock is the Latvian Ministry of Health, are at the same level of subordination to the Ministry. Yet the procedures of financing the institutions included in the Service are different and the State Blood Donor Centre Statute stipulates that the State Blood Donor Centre methodically manages, organises, and coordinates the production of blood components and supplies them to medical institutions on request, except the medical institutions having their own blood establishment.

The monographic and descriptive methods are used to study elements of problems and to synthesize interrelationships or formulate correlations. The inductive method was applied to make general conclusions from several facts or to determine correlations. The deductive method, in its turn, was used to logically systematise and theoretically explain empirical research results. The methods of analysis of balance sheet and financial indicators were applied to assess funding allocated to the organisations that are studied and its use efficiency. It was examined by a disperse analysis whether the funding allocated to preparing blood and blood components differs in various regions of Latvia.

In the final part of the research, the authors draw several conclusions on the procedures of financing the regional system of the National Blood Service of Latvia which was affected by both the overall economic situation in Latvia and the structural optimisation of the Service in 2006. The optimisation was based on the „Conception for Optimising the Structure and Operational Principles of the National Blood Service of Latvia in 2006-2010” developed for the State Blood Donor Centre. The change in the system of financing has especially affected the cost of producing blood and its components, as since 2010 the State Blood Donors Centre differentiates funding for the Blood Establishments according to the quantity of blood produced. At the same time, the agreements made between the State Blood Donors Centre and the BEs stipulate particular quantities of blood to be produced. It means that the output of blood at the Blood Establishments is limited; otherwise the medical institution, to which a particular Blood Establishment is subordinated, has to pay for the excess quantity of blood. Given the fact that a single system of distributing blood and its components exists in Latvia, such a model of financing is inefficient, as it does not allow production of blood in towns where more blood donors are available.

DOI: http://dx.doi.org/10.5755/j01.eis.0.5.1078


Keywords


National Blood Service of Latvia; financing

Full Text: PDF

Print ISSN: 1822-8402
Online ISSN: 2335-8831