Technical Brief: Hospital Drug Expenditures – Estimating Budget Needs at the Regional Level in Ukraine

Resource Type: Technical Report
Authors: Sergei Muratov, Alexandr Katsaga, Olga Zues
Published: September 2018

Resource Description: Ukraine has recently embarked on health reforms. Transformation of health financing and health services purchasing is a key element of the reform package. To assist the Ministry of Health with its implementation, the USAID Health Finance and Governance Project (HFG) has supported the design and introduction of health purchasing operating systems, including development of a new case-based payment system for hospitals (quasi-DRG). The HFG supported three oblasts in Ukraine to conduct cost accounting study in 180 multiprofile hospitals. The results were used for the design of case-based payment model. However, the task is complicated by uncertainty around the magnitude of out of pocket payments which affects the calculation of the appropriate payment rates to the providers. Another issue is the practice of prescribing drugs with poor evidence and realization that public money should not cover such products. This study therefore aimed to estimate the magnitude of hospital budget deficit on medications at the regional level and to estimate the costs of inpatient prescriptions with poor evidence.




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