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Books by Grigory Yavlinsky
NIZHNI NOVGOROD PROLOGUE
Economics and Politics in Russia
The Center for Economic and Political Research (EPIcenter)
Nizhni Novgorod-Moscow, 1992
 
SECTION TWO
NIZHNI NOVGOROD - THE FIRST STEP
CHAPTER 4. EXPERIENCE AND PRACTICE

4.1 Entrepreneurship and Property

4.1.1 Conversion of the Social Infrastructure

Health Services

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In view of the great social significance of health institutions, their conversion should be approached with particular care.

Previous experience in the transfer of polyclinics and hospitals to the financial statements of municipal bodies indicates that these organisations frequently fall into decline very quickly. Local authorities did not have therequisite means to support the previous level of medical services. Enterprises were able to acquire the necessary medical equipment, including foreign purchases and guarantee existing services, and also pay medical employee bonuses from their own funds, provide their children with places in factory kindergartens, and render other services. For this reason the enterprise managers and work collectives do not always support proposals to transfer health establishments to local authorities. It is sufficient to note that when the Nizhniy Novgorod Council of People's Deputies adopted such a decision, on the basis of a resolution by the Russian Supreme Soviet dated December 27, 1991, regarding the division of state property, on the GAZ production association's drug addiction centre, the latter sued them.

In addition, one has reason to hope that, with the transition to insured medicine, which is supposed to be implemented as of January 1, 1993, the utilization of medical establishments will not incur losses, but will instead derive profits. Admittedly, the enterprises will not be exempted from paying the appropriate contributions to insurance funds.

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