This presentation was made by Azerbaidjan at the 3rd Health Systems Joint Network meeting for Central, Eastern and South-eastern European Countries held in Vilnius, Lithuania, on 25-26 April 2019

1. - Health financing reforms and introduction of
a mandatory health insurance
- Procurement mechanism to reduce the cost
of and the increase the quality of the drugs
25- 26 April 2019, Vilnius, Lithuania

2. 2
Demographic indicators
▪ Gender ratio (2018) 0.99 males/female
▪ Population up to 14 years (%, 2018) 22.6
▪ Population between 15-64 years (%, 2018) 70.9
▪ Population over the age of 65(%, 2018) 6.5
Development indicators
Basic information
▪ Total population (mln, 6 April 2019) 10
▪ Population growth (annual %, 2018) 0.9
▪ Birth rate (per 1,000 population, 2017) 16.3
▪ Total area (thousand sq kms) 86.6
▪ Life expectancy at birth (2017) 73.1 years (m)
77.8 years (f)
▪ GDP per capita ($, PPP, 2016) 17,398
▪ Below-poverty-line population (%, 2016) 5.9
▪ Healthcare expenditures in 2019 (mln USD) 616.6
▪ Healthcare expenditures constitute 4.2 % of state expenditures
Turkey
AZERBAIJAN HEALTHCARE OVERVIEW
Azerbaijan is a middle-income country with almost 94% of its population living above the poverty line

3. 3
Productivity per doctor
28
58
2016 2017
+108%
17
48
2016 2017
×2.8
Activity per doctor increased by 108% due to:
▪ Consolidation of workforce and assets and thereby higher
demand per doctor
▪ Higher salaries and incentives
Activity per bed increased by 2.8 times due to:
▪ Consolidation of assets (closing down beds)
▪ Change of incentives for providers to reduce average length of stay
# of inpatient cases # of inpatient cases
Inpatient cases per bed
37% increase in
inpatient activities
Bed occupancy rate
45% to 65%
Avg. length of stay
9.6d4.9d
19% doctor
reduction
Number of beds
612300
Overview – effects of the reform in 2017 in Mingachevir

4. 4
▪ Everyone, sick or healthy,
contributes for the well-
being of all
▪ No one has to worry about
himself, his child,
or his relatives
▪ Everyone receives
– the right treatment
– at the right time
– in every hospital in the country
– without any financial hardship
Targets:
▪ Share of out-of-pocket spending will reduce
▪ Catastrophic expenditure on health will decrease
▪ Impoverishing expenditure on health will decrease
▪ Delay in care among population will reduce
The healthcare reform has a bright vision for the population as a whole
Azerbaijan healthcare vision

5. 5
Current Healthcare system of Azerbaijan
Patients
Regulators
Purchasers
Providers
Sources of
Funding
Ministry of Health Ministry of TaxesMinistry of Finance
Employers
Employees
Self-employed
Income taxes,
VAT, etc.
Private Health Insurers
Voluntarily
contribute to
Population
Provide services Formal and informal OOP
Local executive
powers
Other government
bodies1
Transfers
Regulates Transfers
Reimburse for
additional care
Private providers and
pharmacies
Ministry of Health
Providers
Other public providersRegional hospitals
Ministry of Health

6. 6
Target Healthcare system of Azerbaijan: Provider, Purchaser and Regulator separation option
Patients
Regulators
Purchasers
Providers
Sources of
Funding
Ministry of Health Ministry of TaxesMinistry of Finance
MHI Agency
Transfers
Employers
Employees
Self-employed
Mandatory
contribute to
Purchases covered services
Reimburse for
additional care
Regulates
Economically inactive
population1
Transfers
contributions
Subsidizes
Population
Provide services Formal OOP for non-covered services
Private providers and
pharmacies
Provider authority
Voluntarily
contribute to
Private Health Insurers

7. 7
Efficiences in procurement for TB, HIV and Hepatitis C medicines and diagnostics
In 2018, the Ministry of Health of the Republic of Azerbaijan joined to an international drug procurement platform. As
a result, an agreement was signed between the Ministry of Health of the Republic of Azerbaijan and the United Nations
Development Program which covers 2018-2020 years. The purpose of this project is to provide quality services to the population
of Azerbaijan through the purchase of reagents and medicines for the fight against HIV/AIDS, TB and Hepatitis C.

8. 8
State programs and measures
In 2019 136.4 mln USD of healthcare expenditures were directed to financing targeted programs and
measures:
- Measures to treat diabetes – 26 mln USD
- Measures on fight against cancer – 24.2 mln USD
- Measures to combating chronic renal failure – 17.7 mln USD
- Hemophilia disease program – 7.2 mln USD
- State program on fight against thalassemia – 6.6 mln USD
- Fight against malignant blood diseases – 3.9 mln USD
- Immunoprophylaxis of infectious diseases – 3.8 mln USD
- Other healthcare measures – 47 mln USD

9. 9
THANK YOU FOR YOUR ATTENTION!