A surreal maze representing the complexities of European healthcare systems and informal payments.

The Hidden Costs of Healthcare: How 'Informal Payments' Undermine European Systems

"Uncover the surprising truth about unofficial fees in European healthcare and what it means for you."


In many countries, particularly those in Eastern Europe, patients often make 'informal payments' to healthcare providers—unofficial fees for services they're already entitled to. This can range from cash to valuable gifts and are often rooted in a desire for better treatment, fear of denial, or simply following local customs. These practices can severely undermine a healthcare system based on fairness and equal access.

While seemingly small on the surface, these payments can have significant consequences. They contribute to corruption, reduce equal access to care, and create a two-tiered system where those who can afford to pay receive preferential treatment. Understanding the dynamics of these informal payments is crucial for building a more equitable healthcare system.

This article explores the hidden world of informal patient payments in Europe, shedding light on why they occur, who is most affected, and what can be done to tackle this pervasive issue, drawing insights from institutional theory.

Why Do Informal Payments Exist? The Institutional Asymmetry

A surreal maze representing the complexities of European healthcare systems and informal payments.

Institutional theory suggests that informal payments arise when there's a mismatch between a country's formal rules (laws and regulations) and its informal institutions (social norms, values, and unwritten rules). When these systems are out of sync, practices like informal payments can take root.

Imagine a society where the formal healthcare system is underfunded, leading to long wait times and perceived low-quality care. Simultaneously, there's a deeply ingrained cultural norm of expressing gratitude through gifts or payments. In such a scenario, patients might feel compelled to offer informal payments to ensure they receive adequate attention, even if it technically violates formal regulations.

  • Formal Institutional Imperfections: Legal and ethical shortcomings, socio-cultural factors (tradition of gratitude), governance failures (lack of accountability), and economic factors (underfunding).
  • Institutional Asymmetry: Disconnect between formal laws/regulations and informal social norms/values.
The greater this 'institutional asymmetry,' the more likely informal payments become. It's not just about individual corruption but reflects deeper systemic issues.

Tackling Informal Payments: A Multi-Pronged Approach

Addressing informal payments requires a comprehensive strategy that targets both formal and informal institutions. Altering informal institutions involves advertising campaigns, normative appeals, and tax education to change perceptions and behaviors regarding these payments.

For formal institutional changes, interventions include increasing health expenditure, improving service provision, modernizing governance, and shifting focus from curative to preventative care. These measures can reduce institutional asymmetry and the urge to pay informally.

By understanding the root causes and implementing targeted interventions, Europe can strive towards more equitable and transparent healthcare systems, ensuring that access to quality care isn't determined by the ability to make unofficial payments.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1016/j.healthpol.2017.08.007, Alternate LINK

Title: Rethinking Informal Payments By Patients In Europe: An Institutional Approach

Subject: Health Policy

Journal: Health Policy

Publisher: Elsevier BV

Authors: Colin C. Williams, Adrian V. Horodnic

Published: 2017-10-01

Everything You Need To Know

1

What are 'informal patient payments' in the context of European healthcare systems?

Informal patient payments in Europe are unofficial fees or gifts given by patients to healthcare providers for services they are already entitled to. These payments can include cash or valuable gifts, often motivated by a desire for better treatment, fear of service denial, or adherence to local customs. These practices undermine the principles of fairness and equal access within the healthcare system.

2

According to institutional theory, why do 'informal payments' occur in healthcare systems?

Institutional theory explains that informal payments arise due to 'institutional asymmetry,' which is a mismatch between a country's formal rules (laws and regulations) and its informal institutions (social norms and values). When formal healthcare systems are underfunded, and there's a cultural norm of expressing gratitude through gifts, patients may feel obligated to offer informal payments to ensure they receive adequate care, even if it violates formal regulations. Factors such as legal shortcomings, tradition, governance failures, and economic issues contribute to this asymmetry.

3

What are the consequences of 'informal payments' on a healthcare system?

Informal payments have significant consequences, contributing to corruption, reducing equal access to healthcare, and creating a two-tiered system. In this system, those who can afford to pay receive preferential treatment, undermining the fairness and equity of the healthcare system. This can lead to decreased trust in the system and poorer health outcomes for those unable to pay.

4

What strategies can be used to address 'informal payments' in healthcare, focusing on both formal and informal institutions?

Addressing informal payments requires a multi-pronged approach that targets both formal and informal institutions. Addressing informal institutions includes advertising campaigns and normative appeals to shift perceptions and behaviors regarding these payments. A broader strategy would incorporate elements such as strengthening regulatory enforcement, improving funding and resources for healthcare systems, and promoting transparency and accountability in healthcare practices. Additionally, efforts must focus on changing cultural norms that perpetuate these practices.

5

How does 'institutional asymmetry' contribute to the problem of 'informal payments', and what are its implications for addressing this issue?

The concept of 'institutional asymmetry' highlights the disconnect between formal regulations and informal social norms as a driver for informal payments. For example, even with laws prohibiting unofficial fees, a deeply ingrained culture of gift-giving to show appreciation can lead patients to offer payments to healthcare providers. This asymmetry reflects systemic issues beyond individual corruption, showing a need to address both the formal and informal institutional factors to tackle informal payments effectively.

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