Different health indicators of the population in different countries of the world, as well as the degree to which the needs of the population in medical services are met, are largely explained by the public spending on health care. The average public spending on health care in 2017-2019 was 6.2% of GDP in advanced countries and 4% of GDP in emerging market economies. Since the beginning of the pandemic in 2020-2021, health care financing increased in all countries. In Ukraine, public expenditures on health care increased from 3.3% of GDP in 2017-2019 to 4.1% in 2020.
These data signal the insufficient level of financial provisions for health care in Ukraine, compared to both emerging market and advanced countries. The average expenditures on health care in Ukraine 3.3% of GDP before the pandemic is significantly lower than the average in these groups of countries – 4% and 6.2% of GDP, respectively. In 2020–2021, health care financing increased in all countries (not only in Ukraine), and therefore Ukraine lagged behind many countries around the world.
World experts recognize that until the end of the pandemic, health care sector should receive emergency financing for providing new hospital beds for COVID-19 patients, involving additional medical staff and its training, purchasing necessary medicines, materials and drugs, and widespread vaccination. In the future, priorities should focus on expanding the medical infrastructure and medical institutions, including the providing incentives for medical staff to work in the remote areas.
Read more in the study of Doctor of Economics Tetiana Bogdan “Transforming Public Finances: Global Processes and Challenges for Ukraine”.