Consolidations Not a Silver Bullet for Finnish County Financial Woes
In a recent interview with Helsingin Sanomat, Mika Kortelainen, a professor of health economics in Finland, expressed his skepticism about the effectiveness of consolidations in solving the financial challenges faced by well-being services counties. The debate over county finances has intensified as projections show a combined deficit of 1.45 billion euros for 21 counties this year, a significant increase from previous estimates.
Well-being services county Varha in Southwest Finland is already implementing cost-saving measures by adjusting the terms of employees and officials to reduce costs by 11 million euros. Prime Minister Petteri Orpo and Minister of Finance Riikka Purra have acknowledged the dysfunctionality of the social and health care system.
Kortelainen emphasized that research does not provide a clear answer on the optimal number of counties for economic efficiency. He cautioned against assuming that consolidations would lead to significant savings, pointing out the potential problems they could create. Despite calls for consolidations, the government is considering other avenues to address funding and operational efficiency in the counties.