TCPHEE   

Tobacco Control and Public Health in Eastern Europe
founded in honor of professor Ilya N. Andreev,
the first coordinator of the coalition 
‘For smoke-free Tatarstan'

 

ISSN 2222-2693 (Print)
ISSN 2222-4629
(Online)

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Conference abstract

Alternative mechanisms of state public health institutions financing in Ukraine
Anastasiya Hural, Irena Gryga

BACKGROUND. The main source of state public health institutions financing in Ukraine is budgetary funding. In order to overcome the underfunding, the idea of multichannel health financing was proposed in the late 1990s. The main forms of extrabudgetary financial support of public health institutions in Ukraine are voluntary health insurance, non-profit self-financing, charity and sponsorship. The study aims to deeper understand the nature of alternative financing mechanisms of state public health institutions in Ukraine and peculiarities of their use in practice.
METHODS. The proposed study is exploratory. Case-study was selected as research method. Nine unstructured interviews were conducted in six health care facilities that have agreed to participate in the study. All studied facilities were in-patient.
RESULTS. The sources of financial revenues of the studied institutions were as follows: reimbursement for treatment of insured patients, reimbursement for treatment of sickness funds members, payments for services (medical examinations, counseling, transportation to the hospital), rental of premises, payment for internship from the students of paid forms of medical education, charitable contributions, contracts with companies, contracts with private clinics based in public institutions’ premises (limited liability companies, private entrepreneurs), sponsorship, grants, gifts, payments for services for foreigners, and in-kind revenues. Major health facilities expenditures were the following: salaries (not covered from extrabudgetary revenues; ranged from 70% to 92% of the funds provided to the institutions from state (municipal, regional) budget), energy carriers (partially covered from extrabudgetary funds), patients nutrition, medicines, materials, household expenditures, reparation of premises, and purchase of equipment (mostly covered from extrabudgetary revenues). In the studied cases, funds raised by alternative funding mechanisms amounted from 2% to 22% of the total annual institutions budgets, depending on the type of facilities and administrative subordination.
CONCLUSIONS. Alternative financing mechanisms (extrabudgetary revenues) help to support functioning of public healthcare institutions. In the studied cases, extrabudgetary revenues amounted on average 10% of the annual institutions budget. Considering that 70-92% of the funds provided to the institutions from state (municipal, regional) budget were spent on salaries, extrabudgetary funds significantly help public health institutions to work.

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