Governor of the Bank of Israel Karnit Flug has warned of a severe crisis looming in the health system, following many years of neglect. Figures presented by her at the Israel Democracy Institute Eli Hurwitz Conference show that a health crisis in the coming years is practically unavoidable.
Israel is already ranked last among Organization for Economic Cooperation and Development (OECD) member countries in the density of beds in emergency medical wards, while Israel has the highest rate of population growth in the OECD, and its elderly population will grow even faster - 52% by 2030 - and the number of handicapped people will grow by 68%.
This is the less alarming part of the problem. The more serious aspect is the number of doctors in Israel, which is currently in the middle of the OECD in per capita number of doctors; however, Israel has the oldest doctors in the OECD: over half of the doctors in the health system are over 55 years old.
In addition, the rate of doctors graduating medical school in Israel is the lowest in the OECD, which means that the number of per capita doctors in Israel is projected to fall sharply in the coming years, unless Israel imports large numbers of foreign doctors.
"The Israeli healthcare system is considered very high-quality by international comparison. However, given the overcrowding in the hospitals, the long wait for various procedures, and the low rate of doctors and nurses per capita, the level budgeting for the healthcare system must be adjusted to the tasks imposed on it, a significant increase in the physical infrastructure and human capital in the system, and streamlining the long-term care system, with particular attention to improving systemic coordination. These can be advanced only through a multi-year plan based on a detailed analysis of future needs," Flug said.
Worrisome marks by students in Israel
Flug severely criticized the educational system's achievements, saying that the achievements of students in Israel were "very unimpressive, and that is an understatement." In view of these trends, Flug cited an OECD analysis that found that the future contribution of human capital to expected growth in Israel in the next 15 years was near zero, the lowest in the OECD. She added, "There are grounds for great concern about the future contribution of human capital to our growth."
Flug expressed support for affirmative action in the educational system, and implicitly criticized the failure to deal with the problem of haredi (ultra-Orthodox) education, which does not train its graduates for the labor market inn Israel. She quoted a Bank of Israel study that found that a haredi man with 17 years in the Torah educational system had the equivalent of only 10 years of education in terms of earning capacity.
"In particular, the quality of secondary and college education must be strengthened and improved, including in the post-secondary technological schools and in professional training for graduates," Flug concluded. "The future needs of the labor market must be examined, and skills and qualifications must be adjusted to dynamic needs, including by providing cognitive skills that will provide the ability to adjust to a changing labor market."
Published by Globes [online], Israel business news - www.globes-online.com - on May 25, 2016
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