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Methods of financing health expenditure: benefits and prospects of reform

The article examines the main categories of health care financing, factors that influence the development and modernization of the medical sector. As a result of the study, it was emphasized that the financial support provided by special methods of the financial mechanism is important for this industry. The author revealed the content of methods of financing health care. Financing of health care expenditures is carried out using such methods as: budget and estimate, program-target, method of financing for the services actually provided.The advantages and disadvantages of each of the methods of financing health care have been studied. The author pointed out that in the budget process the program-target method is used at the level of the state budget and at the level of local budgets. The article revealed the components of the program-target method, which are budget programs, responsible executors of budget programs, passports of budget programs, performance indicators of budget programs. It is established that the characteristic features of the program-target method are: focus on the results to be achieved as a result of program implementation; the ability to assess the consequences of budget decisions in the process of their adoption; strengthening responsibility for spending budget funds; the possibility of conducting a thorough analysis of budget expenditures on the basis of performance indicators; ensuring the transparency of the budget process. It has been proven that the most traditional and widespread method of financing health care expenditures in Ukraine is budget financing, so the emphasis was on the advantages of this method of financing.In addition, the author revealed the relevance of the method of financing health care expenditures for services actually provided, which is most in demand among other methods in countries with developed market economies. The author considered the positive and negative aspects of this method of financing and stressed that the actual implementation of financing of paid services may become positive due to the introduction of compulsory state social health insurance, which will be an additional source of funding for health care.