Interview with Artur Białkowski, Managing Director of the Business Services Division at Medicover

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Interview with Artur Białkowski, Managing Director of the Business Services Division at Medicover

The private healthcare market in Poland is entering a new phase of development. In a conversation between PMR and Artur Białkowski, Managing Director of the Business Services Division at Medicover, we reviewed the key trends affecting this market. “The private and public healthcare systems in Poland are two mutually supportive entities; today, one cannot function without the other,” says Artur Białkowski. Why? Read the article for more information.

Artur Białkowski

Managing Director of the Business Services Division, Member of the Board of Directors of Medicover, President of the Board of Directors of the Association of Private Healthcare Employers

Today, rising prices appear to be the key challenge facing the market. According to data from the Central Statistical Office (GUS), inflation in the medical services market in 2023 stood at around 14%. What factors have the greatest impact on prices in the healthcare market?

Today, the healthcare system is indeed primarily grappling with rising costs. This is happening in both private and public facilities. It is true that inflation in the healthcare market has always been high—usually higher than the overall CPI. However, what we are seeing now is the result of many factors. First, the population is aging, and as a result, the demand for medical services is growing—we are seeing that patients are using medical services more frequently than in the past. The technology used to provide medical services is also changing—new, innovative, but more expensive components are emerging, for example in diagnostics, which increases the cost of providing medical care.

In addition, we are seeing wage increases in the healthcare sector that stem from two factors: first, an increase in the minimum wage; and second, a shortage of staff. These two factors are interrelated; as minimum wages rise, other employee groups expect their wages to increase as well.

You mentioned the issue of human resources. What are we doing to address this, and does Poland deviate significantly from European standards in this regard?

The issue of the availability of medical personnel has been a topic of discussion for many years. On the one hand, everyone agrees that there are not enough specialists. Increasingly, however, people are beginning to say that the situation isn’t so bad after all, because we’re almost at the European average (NIL data). It is worth noting, however, that the assessment of medical staff availability is influenced not only by their total number per capita. There is another factor to consider: the frequency of doctor visits—and this is where Poland faces a problem. Poles use medical services more frequently and visit the doctor more often than, for example, Swedes do. With this in mind, we would need significantly more medical staff to ensure the same level of access to doctors. An additional problem is the age of medical staff, not only in Poland. Currently, however, there is a strong emphasis on educating and training more doctors. Of course, this won’t happen overnight, as it takes time, but I think there’s a chance that, at some point, we’ll be able to replace them with new staff.

In light of staffing shortages, there are also ideas to optimize certain processes, automate certain procedures, or expand telemedicine services.

Epidemiological data show that there are two infection seasons in Poland and that the number of patients with upper respiratory tract infections increases significantly during these periods.

At Medicover, during certain months of the flu season, we see year-over-year increases of about 20%. Such increases create a tremendous need for good organization and optimization of clinic operations, because it’s not feasible to hire doctors for just three or four months a year, when demand is at its highest.

There’s a lot of talk about the healthcare system also lacking funds. Have you noticed any steps being taken to improve healthcare funding in Poland?

I wouldn’t look at this solely from the perspective of how much funding is lacking or how much more needs to be added. I think it’s worth considering whether the funds we already have today are being spent optimally, and whether we should consider whether reorganizing certain areas of the healthcare system might lead to a more efficient use of what we have. The report “Work. Health. Economy,” published by Medicover, illustrates, for example, the savings that can be generated among employees through reduced absenteeism and presenteeism if they are under Medicover’s care, that is, when they receive care as part of a coordinated medical care system rather than through the standard system. It turns out that this approach could potentially save approximately 25 billion PLN annually nationwide.

Furthermore, it is worth noting that there is an ongoing discussion—in which I am participating as part of the Polish Chamber of Insurance—regarding tax breaks for entrepreneurs who invest in health insurance. Today, the vast majority of people who have health insurance or health plans are, in effect, paying twice for health care. These individuals pay the standard health insurance premium and, in addition, purchase (either on their own or through their employer) private health care. Currently, there are no government incentives in this area. If such incentives were introduced—and here we’re talking about two levels, both for personal income tax (PIT) and corporate income tax (CIT), meaning for both individuals and employers—such an incentive could lead more people to opt for this type of care. Admittedly, no one has yet decided to sit down at the table and discuss specific solutions, although I know that various calculations are already being made in different places. Let’s not forget that today we can no longer speak of two separate systems: private and public healthcare. These are two interdependent systems that support one another. One cannot function without the other. Looking at the scale of private service utilization in specific areas, we see a huge demand from patients for these types of services—there are also fields, such as dentistry, where most services are provided through private financing.

As Medicover, you are expanding in many areas of healthcare, as well as in the overall well-being of patients. Where did the idea for such a comprehensive range of services come from?

Generally speaking, if we look at the pyramid of healthcare services, prevention comes first, followed by primary and specialty care (in the area of outpatient services), and finally inpatient care. In Poland, spending on inpatient care is the highest, so this pyramid is, in a sense, upside down. In light of all the challenges we’ve discussed earlier—that the system is becoming increasingly expensive and the population is aging—it is precisely a comprehensive approach to healthcare that may be the most effective. At Medicover, we are developing so-called “health-promoting” areas, including the concept of holistic patient care. It’s worth noting that in Europe, as well as in Poland, there is increasing talk of preventive health care and lifestyle medicine; new forums dedicated to these topics are emerging, promoting this type of approach to healthcare. We know that the Ministry of Health and the National Health Fund are also interested in developing this area and investing more resources in it.

The topic of preventive care or lifestyle medicine should be one of the key areas we focus on. How we eat and whether we exercise are areas in which we should invest heavily. When it comes to curative medicine, we can, of course, take certain measures on a case-by-case basis, right here and now. However, we must think strategically—if we don’t invest in prevention now, healthcare will become much more expensive in a few years.

There are also discussions underway to expand preventive care within the framework of occupational medicine. Today, occupational medicine is funded by employers, and it is clear that additional preventive screenings would place a significant burden on them. However, if they were funded by the National Health Fund (NFZ), this idea would have a good chance of success. Certainly, some mechanisms need to be developed in this regard, but given what the pandemic has shown us, it is clear that something like this can be organized.

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