Originally Published October 2000
Q & A: Joachim M. Schmitt
BVMed Calls for Frank Talks on Healthcare Funding in Germany
As Germany embarks on a profound restructuring of its healthcare system under the framework of Healthcare Reform 2000, the national trade association BVMed has been actively promoting the industry viewpoint to ensure that its needs aren't lost in the shuffle. With the assistance of AdvaMed (formerly HIMA) in the United States and EUCOMED, it has issued a 148-page report titled "The Value of Medical Technology in the German Health Care System." The full-text German version of the report can be found at http://www.bvmed.de/innovation.htm; a complete English version of the report is available at http://www.bvmed.de/innovation.htm#english. EMDM spoke with Joachim M. Schmitt, director general of BVMed, about some of the issues raised by Germany's healthcare reform.
Q:
The Association of Leading Statutory Health Insurers and the German
Hospital Association recently came to a last-minute agreement
on a diagnosis-related group system, which is called for under
Healthcare Reform 2000. Could you tell us about that?
A: First I should explain that a type of DRG system already exists in the hospital sector. However, these lump sums only cover 25% of all cases. The healthcare reform law specifies that a DRG system needs to be implemented to cover all cases.
Q: I understand that several DRG models were considered.
A: Yes, it was mandated that the system be international in scope, and therefore the sickness funds and hospital association compared a number of existing systems. They ultimately decided that the Australian model was the best fit for Germany. It was also relatively inexpensive: the single royalty payment amounts to approximately €110,000.
Q: BVMed has stated that the introduction of a service-based payment system for the inpatient sector is a step in the right direction, but you do have some reservations regarding the lack of device industry input.
A: Yes, the decision makers in the healthcare sector need to become more aware of the problems that device manufacturers face. And industry needs to be more involved in the review process. BVMed has been lobbying for the creation of a permanent seat on the Federal Committee that would be occupied by experts selected with our participation. That way, when the committee makes procedural decisions, we will have some experts taking part at the start of the process. This would also ensure greater transparency.
Q: Numerous problems facing industry and the healthcare system were raised in the report on medical technology. What would you say are the key challenges facing he German healthcare sector?
A: Funding is the most critical issue right now, of course. We have to find new ways to adequately finance the healthcare system, and we must find an answer to the following question: How can we ensure that necessary and useful medical and technical advances can benefit as many patients as possible without delay? The time is ripe for an honest discussion on broadening the financial base of the German healthcare system.
The second point, which I mentioned earlier, is raising awareness about the medical device industry among decision makers. By and large, they don't see a difference between making drugs and developing medical devices. That is the reason we have set up Gesundheitsforum Innovationen, in which well-known professors and physicians show the public via different case studies the value of medical technology.
Adequate funding and reimbursement for innovative technology is a must.
BVMed can be contacted at Hasengartenstr. 14C, D-65189 Wiesbaden, Germany; phone: +49 611 976750; fax: +49 611 719769; e-mail: info@bvmed.de; Internet: http://www.bvmed.de.
