French government initiates major new developments in proximity healthcare

The French government has today issued a decree creating a new category of hospitals, known as “Hôpitaux de Proximité” or proximity hospitals. The decree sets out the criteria that define these hospitals, their objectives, and their financing mechanisms. Frontier (Europe), in collaboration with Ylios, advised the French government on these issues.

The criteria which define proximity hospitals are predominantly based on the specific economic and demographic characteristics of the population the hospital serves, and indicators of whether that population can access other healthcare services. The decree also seeks to promote efficiencies in the healthcare system as a whole: it requires that proximity hospitals take advantage of interdependencies between themselves and other actors (such as community and social care), and by coordinating patient pathways.

The financing mechanisms specified by the decree consist of a mix of fixed payments and payments by activity. The fixed component itself consists of two parts: one based on revenues earned in previous years, and another calculated on the basis of the healthcare needs and characteristics of the population served.

Frontier (Europe) regularly advises clients in the health sector in France and across Europe.

For more information, please contact Goran Serdarevic on g.serdarevic@frontier-economics.com, or call +44 (0)20 7031 7000.

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