CPT Scott J. Stokoe
HCA 5312, Issues in International Health
06 February 2004
Austria
Nestled in the center of central Europe lies the Republic of Austria. It was created in 1918 after the collapse of the Austro-Hungarian Empire. In 1938, it fell under German control and became part of the Third Reich. Despite its liberation from Germany in 1945, Austria continued to experience internal change until 1955 when it officially became free and independent (U.S. Department of State, 2004). In spite of Austria’s size and location, it is well known for its world contributions in music, physics, psychology, and philosophy. Some of the well-known names associated with Austria are: Wolfgang Amadeus Mozart, Johann Strauss (senior and junior), Kurt Goedel, and Sigmund Freud (Wikipedia, 2004).
Austria is a landlocked country, which is broken down into nine states: Voralberg, Tyrol, Salzburg, Carinthia, Styria, Upper Austria, Lower Austria, Burgenland, and Vienna. The capital city is located in Vienna. Austria shares its northern borders with Germany and Czech, its eastern borders with Slovakia and Hungary, its southern borders with Italy and Slovenia, and its western borders with Switzerland and Liechtenstein. Comparably, it is smaller than the U.S. state of Maine, measuring 83,858 square kilometers (1,120 square kilometers are water and 82,738 square kilometers are land). The western region of the country holds the remarkably beautiful and world-renowned Alps mountain region, while the eastern and northern regions remain generally flat with occasional sloping terrain. The climate is temperate with snow found in the mountain regions and rain in the lowlands. The winters are often cold and the summers cool (CIA World Factbook, 2003).
Demographics
With an annual growth rate of 0.22%, Austria’s current population is estimated at 8,032,926. Historical ties with its surrounding neighbors resulted in its current ethnic mix of German, non-national, and naturalized citizens. The non-national mix includes migrants from Croatia, Slovenia, Hungary, Czech, Slovakia, and Roma. Austria still experiences small annual migration, which measures 2.44 migrants per 1000 people (CIA World Factbook, 2003). The ethnic mix also introduced a number of religions. Roman Catholic is the primary religion, followed by Muslim and other, then Protestant. There is also a small number with an undeclared religious preference. The primary language spoken throughout the country in German; however, other languages spoken within the country include French, Slovenian, Czech, Polish, Greek, Farsi, Turkish, and Arabic (Country Watch, 2004).
Austria has been challenged with a growing number of refugees seeking asylum. In 2000, they received 18,284 requests for asylum, in 2001, 30,135, and by October 2002 they had received 29,817 requests (UN Refugee Agency, 2003). The final tally for 2003 was 30,240 requests (UN Refugee Agency, 1998). The number of refuges seeking asylum almost doubled in 1998 because of the war in Kosovo. Since then, it has been primarily the Kosovars that have caused the increase in asylum requests. Other groups seeking a new life in Austria include the Armenians, Azerbaijanis, Georgians, Turks, Macedonians, and Yugoslavs (UN Refugee Agency, 2003).
The country’s primary natural resources are iron ore, oil, timber, magnesite, lead, coal, lignite, copper, and hydropower. Of the primary natural resources, hydropower provides 67.2% of the country’s electricity (CIA World Factbook, 2003). In 2002, energy production reached 66 terawatt hours and was sufficient to support its hydroelectric consumption of 39.3 terawatt hours. Austria’s primary energy consumption, however, was generated from oil, in which 30,660,000 gallons per day were produced and 11,298,000 gallons per day were consumed. Following oil, in succession of energy consumption, was hydroelectricity, natural gas, and coal (BP, 2003).
Labor within Austria is split between services, industry and crafts, and agriculture and forestry, all of which support the country’s import and export businesses. Imports to Germany, Italy, the United States, and France generate $138 billion and exports to the same (replacing France with Switzerland) generate $145.7 billion annually. The major export and import products are relatively similar and include machinery, transport equipment, consumer goods, travel services, insurance, and financial services. Austria’s internal industries provide additional export products, like food, chemicals, lumber and wood processing, paper and cardboard, and communication equipment (CIA World Factbook, 2003; Index of Economic Freedom, 2004). Year-round tourism brings 15 million visitors annually and greatly contributes to the country’s financial strength. Despite high production costs, internal agriculture provides roughly 80% of the domestic food requirements (Country Watch, 2004).
On the Human Development Index (HDI), which measures a country’s quality of life, Austria ranked 16th out of 175 countries. When broken down further, 16th reveals that Austria had significant achievements in the three main areas of human development: longevity, knowledge, and education (Country Watch, 2004). For population, Austria is ranked 88th out of 227 countries (Nationmaster, 2003) and has median age (or probably better know as the baby boomers) of 39.2 years (2002). The population pyramid predicts that this age group will remain the largest group in 2025, causing the age group of 80 and older to double. Future predictions also indicate that Austria’s population growth will be 0% between 2010 and 2020. A negative population growth rate is expected to follow this decade (U.S. Census Bureau, 2004). Current population challenges, such as Austria’s current birth rate, death rate, and fertility rate may be the early indicators that point to the future population changes. With 9.43 births and 9.69 deaths per 1000 people, Austria exchanges one birth for one death. The fertility rate is also relatively low at 1.41 children per woman (CIA World Factbook, 2003).
As noted by the World Health Organization’s ranking of nine, Austria is known worldwide for maintaining a high health status (www.geographic.org, 2004, International Network for Health Policy and Reform, 2003). Facilities and housing standards allow 100% of the population to use improved water sources and adequate sanitation facilities. Though not a measure of actual health status, self-perceptions of health status are relatively high (UNICEF, n.d.). On a scale of very good to very bad, 74.3% viewed their health status above the median of fair (34.3% very good and 40.4% good). Health status restricts the daily activities of only 5% of the total population (World Health Organization, 2003). To counter disease, the government provides 100% financing for vaccines. However, despite government financing, not everyone receives vaccines. For example, only 90% of the population received a vaccination for measles and 83% for polio3 (Hofmarcher & Rack, 2001; UNICEF, n.d.). The running incidence rate of tuberculosis is 15 per 100,000 people (World Bank, 2000).
The average life expectancy in Austria is 78.17 years, with only a 10.6% chance of not reaching the age of 60. With 15.5% of the population 65 years and older, and future projections for growth, Austria is on the verge of facing the same health care challenges as other developed countries throughout the world. On the opposite end of the spectrum, Austria’s infant mortality rate is extremely low at 4.33 deaths per 1000 (CIA World Factbook, 2003).
Austria’s life expectancy is challenged by two main causes of death: cancer and cardiac disease. The combined effect of these two illnesses accounted for 76.1% of all deaths in 2001. Unchanged for roughly 25 years, every fourth death in men and every fifth death in women are attributed to cancer (World Health Organization, 1998). It is estimated that cancer takes 139.2 lives per 100,000 people (Nationmaster, 2003). The Austrian lifestyle is important note because it is a product of long-standing cultural traditions and beliefs. With drinking and smoking as a cultural norm, the incidence of stomach cancer, in particular, is important to address. Although declining, it still causes of 9.2 deaths per year (World Health Organization, 1998). In addition to cancer and cardiac disease, circulatory disease is the cause 255.7 deaths per 100,00 people (Nationmaster, 2003).
Austria’s health care is delivered under a national heath care program. Social insurance and government contributions, both federal and state, support the medical infrastructure throughout the nine states. Individuals are primarily insured through state social insurance funds, employer based insurance, or special programs that cover civil servants, farmers, craftsmen, or liberal professions. The required tax payments into the social insurance program are dependent on individual gross income. Social insurance, which finances roughly half of Austria’s total health spending, includes health insurance, pension insurance, and work accident insurance. Private insurance is also an option, but it is mainly purchased as supplemental insurance to cover nicer, more comfortable room and services (Hofmarcher & Rack, 2001). Providing health care under a national health care system has led to 99% of the population possessing some sort of insurance. The federal government maintains oversight and responsibility for legislation, formulation of health policy, technical supervision of health services and training, and supervision of the country’s health insurance system (World Health Organization, 1998).
Health insurance funds contract with general practitioners (GP) and form networks in which patients can select doctors. Both GPs and specialists provide primary health care services through outpatient centers provided by the social insurance agencies and local hospitals (World Health Organization, 1998). In April 2001, Austria experienced a 0.6% decline in hospitals bringing the final count to 310 (Statistics Austria, 2004). A potential reason for this decline is the requirements necessary to start up a hospital. Before a private or public hospital can be set up, the provincial government must grant approval and licensure. According to Austria’s Hospitals Act, public hospitals “must be accessible to all patients, charge the same prices for equivalent services, and may set aside no more than 20% of beds for patients with supplementary private insurance.” Medical treatment is required to be the same regardless if a patient has supplementary private or general insurance (World Health Organization, 1998). With 310 hospitals, Austria’s current “bed to patient ratio” is 8.8 hospital beds per 1000 people (Nationmaster, 2003).
Due to the dearth of updated literature on healthcare providers in Austria, the following information is reflects the provider status as of 2001. An interesting fact written by Statistics Austria states that “compared to 10 years ago… one hospital doctor had to cater for the medical needs of 6.1 hospital beds, on average, and there was one nurse for every 1.4 hospital beds.” Increased medical training and improvements in health have changed this fact and one hospital doctor is now responsible for 4 beds, while one nurse is responsible for 1 bed. Of the 35,812 practicing doctors in 2001, 31% were GPs, 42% specialists, 10% dentists, and 16% trainees (Statistics Austria, 2004).
Doctors within Austria are required to join the Austrian Medical Association. As their primary professional representative, the organization (or regional organizations) is responsible for providing input toward doctor training, awarding of contracts with health insurance funds, and administering the doctor registry. Other professional organizations exist throughout the country, but these are mainly organized into voluntary associations (Hofmarcher & Rack, 2001).
The most accurate and up to date information regarding health care expenditures is stated in the 2004 version of Statistics Austria. As this reference is primarily written in German, its finance figures have been converted from euros at a $1.25 exchange rate (FOREX, 2004). In 2002, Austria allocated 7.7% of its gross domestic product (GDP) or $21 billion towards health care expenditures. This is a 5.5% increase from 2001. The majority of health care expenditures was in public health and reached $14 billion (5.4% of the 7.7%). The largest portion of public health spending was on hospital services at $6.5 billion. Closely following hospital services was outpatient services at $4.5 billion, medical equipment/products at $2.9 billion, preventive health at $344 million, research and development at $8.8 million, and other at $1.1 million (Statistics Austria, 2004).
Health reform has been underway in Austria for a number of years. Historically, reforms have focused on changes in hospital structures, financing, integrated delivery systems, nursing, social services, and health promotion/prevention. In addition to the changes mentioned in the HIV/AIDS section regarding the Social Security Act, some other health initiatives have been the Tobacco Act (1995), Genetic Engineering Act (1996), Hospital Financing Act (1996), and Medical Devices Act (1997) (World Health Organization, 1998). Some of the most recent policies include the Long Term Care policy (2003), which seeks to reorganize the long-term health care program, and the Pharmaceutical Policy (2003/2004), which seeks to reduce the average cost increase of public pharmaceutical expenditures from 7-9% to 3-4% annually by 2006 (International Network for Health Policy and Reform, 2003). Another important reform involves hospitals improvements. Austria currently exceeds the European average of beds per 1000 people by 2.1. These extra beds cost the federal government almost three billion euros. A reduction of beds and internal improvements will produce large savings for the government (Auswaertiges Amt, 2003).
Austria’s government is a Federal republic that democratically elects its president and nine state/provincial governors. The majority vote by the Austrian People’s Party reelected Thomas Klestil as president in 1998. He will continue to serve until the new elections in spring 2004. The president is elected for a six-year term and is limited to serving two consecutive terms. The two primary duties executed by the president are to act as the head of state and the commander-in-chief of the armed forces. The president appoints a prime minister to form the government. If successful, the prime minister recommends additional government officials for presidential approval. The federal government maintains control over its nine states, but delegates the responsibility for welfare matters and local administration to the provincial governors. The political parties within Austria consist of the Austrian People’s Party, the Social Democratic Party of Austria, the Freedom Movement, and the Greens (Country Watch, 2004).
The government’s executive, legislative, and judicial authorities are similar to that of the United States. The executive authority is responsible for the development and implementation of Austria’s domestic and foreign policies. The legislative party is broken into two parties, the National Council (Nationalrat) and the Federal Council (Bundesrat). The National council consists of 183 members, who are elected for a maximum of four years, and the Federal Council’s 64 representatives, which are elected by the provincial parliaments and serve for a term of five to six years. Austria’s highest judiciary authorities consist of the Constitutional Court for constitutional matters, the Administrative Court for bureaucratic issues, and the Supreme Judicial Court for civil and criminal cases (Country Watch, 2004).
On January 1, 1995, Austria officially became a member of the EU. Its membership brought a number of foreign investors and helped improve its international competitiveness, both of which helped reinforce its reputation as a well-developed market economy (U.S. Department of State, 2004). Averaging a score of 2.1 on a five-point scale (five being the worst), Austria was ranked number 20 by the Index of Economic Freedom. Fiscal burden to of the government and regulation scored the worst at 4.5 and 3.0 (Index of Economic Freedom, 2004).
Estimates from 2001 state that Austria’s revenue reached $53 billion and its expenses reached $54 billion. The country’s continued expenditures added to country’s external debt raising it to $12.1 billion. Drawing the figures down further, revenue per capita was $6487.20, expenditures per capita was $6609.60, and the external debt per capita was $1481.04 (Nationmaster, 2003). Austria’s economic growth rate reached 1.1% in 2002 (CIA World Factbook, 2003).
Transparency
International ranks the level of corruption in 133 countries. They rate countries on a scale of one to
ten, with ten being the best (or highly clean). The score reflects the sentiments of business people, academics,
and risk analysts. In 2003, Austria
tied with Hong Kong at number fourteen with a Corruption Perception Index of
eight on the ten-point scale.
Corruption influences from Austria’s eastern neighbors pose the greatest
threat (Transparency International, 2003). To curb corruption, Austria’s
penal code assesses up to $350 dollars per day for up to 365 or up to seven
years imprisonment for bribery crimes (Country Review, 2004).
Recent changes within Austria have prompted
the government to deregulate the telecommunications and power generation
industries. Deregulation has allowed
larger private and state owned agencies to acquire these new markets. Research indicates that there are no
shortages in telecommunication abilities and that the telephone system is
highly developed and efficient throughout the country (Country Watch,
2004). In 2001, there were four million
main telephone lines, which equated to 48 main lines for every 100
persons. Cellular telephones have
expanded communication abilities and have reached the six million mark. Austria’s per capita level for
telecommunications is 734.4 cell phones, 744.19 radios, 520.2 televisions, and
452.88 Internet users per 1000 people (Nationmaster, 2003).
Followings its declaration of being free and independent in 1955, the Austrian constitution was drafted with two important laws: 1) Austria declares of her own free will her perpetual neutrality, and 2) …in future times Austria will not join any military alliances and will not permit the establishment of military bases on her territory. World events have prompted Austria to reevaluate its security position, which led to its granting of over-flight rights for the United Nation sanctioned action against Iraq in 1991 and its joining Partnership for Peace with the North Atlantic Treaty Organization (NATO) (U.S. Department of State, 2004). Austria currently holds an observer status in the Western European Union (WEU) and has contemplated becoming a full member of the WEU and NATO (Country Watch, 2004).
Being a landlocked country, Austria maintains both land and air forces. Compared to its neighbors, their military strength is smaller than Germany, Italy, Switzerland and Czech, but is larger than Hungary, Slovakia, and Slovenia (StrategyPage, 2003). In fiscal year 2001-2002, Austria devoted 0.8% of its GDP, or $1.5 billion, on military spending (CIA World Factbook, 2003). Their military active duty strength is roughly 38,000 men, with 800 armored fighting vehicle, and 120 combat aircraft. On a ten-point scale (with 10 being the highest), leadership, equipment, experience, support, and tradition ranked between five and seven. The largest shortfall was in mobility, which ranked number three. On the whole, Austria’s armed forces are ranked number 19 out of the 40 European countries (StrategyPage, 2003).
There are a few
important implications military planners should keep in mind when studying the
country of Austria. Only 16% of the
current population is over the age of 65.
This means that in the next 25 years, health care needs, demands, and
services will dramatically change and increase. Unless fertility rates increase to at least 2.1 children per
woman, the overall population will continue decline throughout the next decade. It is difficult to predict how future events
will affect immigration in Europe, but Austria’s overall economic and health
status will continue to attract large numbers of immigrants seeking
asylum. As asylum is granted and
immigrants are accepted, they will arrive with varying health and financial
statuses that could positively or negatively affect Austria’s current
conditions.
Austria’s relationships with Germany,
France, Switzerland, Italy, and the United States provide many opportunities
and strengths. Austria’s location in
Europe makes it the gateway, link, and central hub for much of the business
throughout Europe. This provides them
the opportunity to stay abreast of new technology, trade opportunities,
partnerships, and continued growth.
Good business practices and trade agreements with its import and export
partners provide the potential to increase its 1.1% growth rate and reduce its
4.8% unemployment rate. Austria’s
central location in Europe and its opportunities for expansion are key elements
for military planners to keep in mind.
The literature does not allude to any
current security or terrorist threats within Austria, but that does not mean
that there is a potential for future growth in this area. Despite the positives associated with its
central location, there are also some negatives. The primary negative aspect of Austria’s location is its
potential to become a primary travel route or meeting place for terrorists
traveling throughout Europe. It is
important for the country to maintain a strong security posture. In the future, it is also likely that
Austria will become a full member of the Western European Union and NATO. Membership will reinforce its relationships
and ties with the world and possibly increase training opportunities and joint
military operations.
A comparison between Austria and the United States (see appendix) shows that the two countries are remarkably similar in a number of areas. However, health expenses per GDP are roughly 6% lower in Austria. The primary reason is that Austria’s health care is delivered through a national health care program. Government control and intervention have allowed Austria to control its health care delivery and insure 99% of its citizens. Despite the lack of a nationwide national health program in the United States, lessons can be drawn from the area of health insurance design and coverage. Health insurance costs have risen within the United States and have dramatically increased the number of uninsured. Streamlining how insurance is designed and delivered within the United States will help reduce health care expenditures and the number of insured.
The information age has also brought increased demands to automate the practice of medicine. Studies and literature throughout the medical arena indicate that the use of electronic medical records reduces error and improves quality of care. The Harris Poll indicated that European Union, especially Austria, exceeded the United States in its use of electronic medical records. The World Health Organization has validated Austria’s health care; therefore, the United States could potentially draw experience and ideas from Austria on how to better expand the use of electronic medical records within its own system.
A
final note is that both the United States and Austria will soon begin to feel
the burden of increased health demands as the baby boomers continue to
age. Changes in health demands, health
needs, and an increasing mix of acute and chronic diseases will challenge both
health systems. A key to overcoming
these challenges is continued information exchanges between the two, and the
rest of the developed world, to share best practices. Contributions made by both countries on new treatment methods,
improved technology, and cost control measures will inevitably improve the
status of both health systems.
For a small country nestled in central Europe, Austria continues to stand out as a country with a strong reputation in economics and health. The greatest challenges Austria must face in the future is its shrinking and aging population. An older population with fewer replacements will introduce a number of economic and health challenges for the country. Early action and intervention on Austria’s part will help maintain their world recognized economic and health posture.
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Appendix
Comparison of the United States and Austria
