The present state of financial support for the public health service

Economic Annals-ХХI: Volume 155, Issue 11-12, Pages: 73-77

Citation information:
Hnydiuk, I. (2015). The present state of financial support for the public health service. Economic Annals-XXI, 155(11-12), 73-77. https://ea21journal.world/index.php/ea-v155-16/

Inna Hnydiuk
PhD (Economics),
Associate Professor,
Vinnitsa Trade and Economic Institute of KNUTE
87 Soborna Str., Vinnytsia, 21050, Ukraine
gnudyk@mail.ru

The present state of financial support for the public health service

Abstract. The state of the public health service in Ukraine can be described as unsatisfactory. Since Ukraine gained its independence in 1991, its health sector has passed through three main phases: the first phase of revival, the second phase of intersectional and international integration, the third phase of reform and creation of a viable model of health care. In this regard, the issue of financing the health industry has always been essential. We used the dialectical method to uncover theoretical principles of financial support for the public health service. The method of statistical analysis was used to assess the financial provision of health care in Ukraine. The national health budget model is currently in practice in Ukraine. This can be explained with the fact that the country’s health sector is financed from the State and local budgets. Given the figures, we can define principles of the public health service financing in Ukraine. For all the above, the share of spending on health care is minimal; it increased slightly only in the 2011-2013. It should be pointed out that the increase in expenditures from the State Budget of Ukraine occurred due to pay rises for health workers. This situation is unacceptable. The financing of health care in 2010-2014 did not meet the needs of citizens. Additionally, we have detected the unlawful and inefficient use of resources. There are a number of issues related to poorly organised work of state bodies, inadequate planning, corruption and lack of transparency. Such problems require urgent solution before conducting further reform. In our opinion, it will be appropriate for Ukraine to use the experience of foreign countries with regard to the transformation of health care system. Actually, it should be adjusted to reforms in Ukraine, and it must not be a blind imitation of the reformatory activity which does not give any positive results. We believe that the complexity and urgency of such reforms is the most serious challenge facing Ukraine. Our country needs a financial mechanism of health care transformation based at individual financial support for the public health service within the background of the overall renewal of the financial system of Ukraine.

Keywords: Finance; Healthcare; Health Expenditures; Budget; Funding

JEL Сlassіfіcatіon: Н61; І22; Н72

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Received 3.11.2015