!!!Krankenanstalten-Zusammenarbeitsfonds, KRAZAF

Krankenanstaltenzusammenarbeitsfonds, KRAZAF (Hospital Cooperation 
Fund), fund in existence from 1978-1996 based on a state treaty 
according to article 15a BVG (Federal Constitutional Act) between the 
state and the provinces, an important instrument for financing  
hospitals. The Hospital Cooperation Fund was financed mainly by the  
turnover tax and by  social insurance agencies (1997: more than ATS 47 
bn). Decisions were made in the Fund Assembly, a political body headed 
by the Health Minister. The Hospital Cooperation Fund distributed 
subsidies and other allowances for Austrian non-profit making 
hospitals and granted money used for structural reform and relief in 
the field of in-patient treatment. Conditions for obtaining grants 
were cost accounting, performance statistics broken down into the main 
diagnostic categories (ICD-9), authorisation for the construction or 
modification of buildings and for the purchase of large-scale 
equipment as well as compliance with the stipulated 
physician-to-hospital-bed ratio. The Hospital Cooperation Fund was 
also responsible for the preparation of an all-Austrian hospital plan 
and a system of hospital financing based on actual medical treatment 
administered and on diagnosis-related groups which came into force on 
January 1, 1997 based on an agreement between the state and the 
provinces (in force until December 31, 2000).


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