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USAID’s Health Finance and Governance (HFG)
project helps to improve health in developing
countries by expanding people’s access to health care.
Led by Abt Associates, the project team works with
partner countries to increase their domestic resources
for health, manage those precious resources more
effectively, and make wise purchasing decisions.
HFG UKRAINE
FINAL REPORT @HFG.ImagebyOlivierLeBlanc
The Health Finance and Governance (HFG) Project works
to address some of the greatest challenges facing health
systems today. Drawing on the latest research, the project
implements strategies to help countries increase their
domestic resources for health, manage those precious
resources more effectively, and make wise purchasing
decisions.The project also assists countries in developing
robust governance systems to ensure that financial
investments for health achieve their intended results.
With activities in more than 40 countries, HFG
collaborates with health stakeholders to protect families
from catastrophic health care costs, expand access to
priority services – such as maternal and child health care –
and ensure equitable population coverage through:
•	 Improving financing by mobilizing domestic resources,
reducing financial barriers, expanding health insurance,
and implementing provider payment systems;
•	 Enhancing governance for better health system
management and greater accountability and transparency;
•	 Improving management and operations systems to
advance the delivery and effectiveness of health care,
for example, through mobile money and public financial
management; and
•	 Advancing techniques to measure progress in health
systems performance, especially around universal
health coverage.
The HFG project (2012-2018) is funded by the U.S.Agency
for International Development (USAID) and is led by Abt
Associates in collaboration with Avenir Health, Broad
Branch Associates, Development Alternatives Inc., the
Johns Hopkins Bloomberg School of Public Health, Results
for Development Institute, RTI International, and Training
Resources Group, Inc.
The project is funded under USAID cooperative
agreement AID-OAA-A-12-00080.
To learn more, visit www.hfgproject.org
ABOUT THE HEALTH FINANCE AND
GOVERNANCE PROJECT 2012-2018
THE WIDE GROUND COVERED BY HFG HEALTH SYSTEMS
STREGTHENING ACTIVITIES IN UKRAINE
KYIV CITY
HIV testing integration
HFG ACTIVITIES
Strategic health purchasing
for TB and general hospitals
TB strategic purchasing
HFG strategic
purchasing interventions
covered a total
of
which
HFG’s data
analytics include
more than
of which
213
hospitals
2.1MILLION
hospital
cases
28
are TB
hospitals
34,000
are TB
hospital
cases
NUMBER OF PARTICIPATING HOSPITALS
Name 	 General (non-TB) hospitals	 TB hospitals
Lviv Oblast	 67	 11
Odesa Oblast	 57	 4
Poltava Oblast	 61	 8
Kyiv City		 5
HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018) 1
CHALLENGES
Since gaining independence more than a quarter
century ago, Ukraine has tried to provide quality,
accessible health care to its people. Despite a
constitutional guarantee of free health care for
all and health sector expenditures of 7.6 percent
of GDP, which are above average for a country of
its income level, Ukraine’s health indicators have
remained poor compared to other countries in
Europe.The country reports one of the highest
HIV/AIDS prevalence rates in Europe, one of the
worst multidrug resistant and extremely drug
resistant tuberculosis (TB) epidemics in the world,
and high rates of non-communicable diseases like
heart disease. Despite nominally free health care,
Ukrainians make high, primarily unofficial out-of-
pocket payments and are generally unsatisfied with
the health care they receive (World Bank 2017).
A major challenge emanates from Ukraine’s
primarily public health care system’s top-heavy
structure inherited from the Soviet Union.The
country has a vast hospital network with almost
twice as many hospital beds per capita as the
European Union.The World Bank refers to Ukraine
as having an “extensive health care infrastructure,
but low quality of health care services.” (World
Bank 2017, p. 49) The hospital networks are
costly to maintain—receiving 65 percent of
health funds—and the current payment system
encourages hospitalization rather than incentivizing
efficiency or improved treatment outcomes.
To address such issues toward improved health
outcomes, in late 2017 Ukraine codified into law
important changes in health care provision and
financing and is currently undertaking a series of
rigorous health system reforms, including a move
to strategic purchasing. Done right, when the
government shifts away from paying hospitals based
on inputs and instead pays for services specific to
diagnosis and strategically readjusts incentives as
needed,provider behavior can be improved and costs
contained through enhanced focus on preventive care
and reduction of unnecessary hospitalizations.
HFG OVERVIEW IN UKRAINE
@zokov
HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018)2
CHANGE
The Health Finance and Governance (HFG)
project began its work in Ukraine in 2013,
providing evidence, tools, and training to help the
country revamp its health care system and more
effectively address the health challenges facing
its population.
We first implemented a pilot in one oblast
(province) focused on integrating HIV counseling
and testing into primary health care.Then, through
our extensive strategic purchasing work beginning
in 2015—first focused on TB hospitals and then
more broadly—we contributed to the framework
for establishment of a national strategic purchasing
system that could remedy many of the health
care system inefficiencies Ukraine inherited from
the Soviet Union. Our efforts have succeeded in
building stakeholder understanding and consensus
on strategic purchasing for health.A new health
payer, the National Health Service of Ukraine
(NHSU), was established in 2018 to support
strategic purchasing rollout across the country.
Implementation of the strategic purchasing
approaches that HFG designed, developed,
and helped introduce has facilitated efficiency
improvements in the hospital sector, including
overall restructuring, repurposing of unnecessary
facilities, unification of departments, and shifting
of hospital specializations to improve efficiencies
and patient care.The oblasts where we piloted
these tools are reporting cost savings from
streamlined hospital systems.This implementation
has changed provider performance and contributed
to thoughtful design of a new case-based hospital
payment system. HFG demonstrated that strategic
purchasing approaches could improve resource use
and contribute to improvements in health systems.
The cost-accounting methodology we developed
and helped introduce has received approval from
the Cabinet of Ministers of Ukraine as the single
approved methodology to inform tariff policy
and design of new provider payment mechanisms
for case-based payments in the country.The new
case-based hospital payment system that HFG
designed together with national partners has
been approved by the prime minister for pilot
introduction in 2019 as a transition system to
the national diagnosis-related group (DRG)
system in 2020. Our work has, thus, put in
place the building blocks for strategic purchasing
in Ukraine and demonstrated their viability
and efficiency impact, paving the way toward
implementation of strategic health purchasing
throughout the country.
“To tell the truth, we thought we understood
everything before. But then, we started to
cooperate with HFG and looked more deeply
at our facilities and their use of resources, and
how the use of resources affected the provision
of quality care and we looked at forecasting,
we understood this was a completely different
instrument.We saw we needed to redirect
resources toward quality of care.We needed to
turn our brains over, to a new way of thinking.”
~ Dr.Viktor Lysak, Director, Poltava Oblast Health Department
@HFG.ImagebyOlivierLeBlanc
HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018) 3
RESULT AREA 1
Demonstrated effectiveness and efficiency of HIV testing at the primary
health care level
Since 2010,Ukraine has been strengthening primary
health care and restructuring secondary-care levels
in select regions of the country,but HIV services
remained outside of this reform;these services were
available only at a specialized,vertical network of HIV
clinics.Aiming to provide evidence for a national policy
dialogue on integrating HIV care into general (non-
specialized) facilities,HFG undertook a cost efficiency
study on the viability of providing HIV services
through the general primary health care network.
To pilot this approach, we worked in collaboration
with the Chernihiv oblast health department to
provide training and ensure access to necessary
equipment and supplies for HIV counseling and
testing at the primary health care level.We also
supported the pilot primary health care facilities in
letting the public know these new services
were available. Our study demonstrated that
in the pilot districts of Chernihiv oblast, HIV
counseling and testing per capita increased 3.52
times; the number of HIV cases detected per
capita doubled; the number of people tested
from among the most at-risk populations
increased eightfold; and the cost per detected
case decreased by 34 percent in pilot areas
versus non-pilot areas (Doroshenko 2015).
Our study provided the Ukraine government with
evidence and lessons on integrating HIV counseling
and testing into non-specialized primary health care,
thereby contributing to the national policy dialogue
on HIV integration into primary health care as a
way to improve access and efficiency.
MAKING A DIFFERENCE
@HFG.ImagebyOlivierLeBlanc
HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018)4
RESULT AREA 2
Improved TB care through a streamlined TB hospital system
Ukraine’s multidrug resistant TB epidemic is in
part blamed on the long hospitalizations that
most TB patients undergo. In Odesa oblast, for
example, the health department reports that a
startling 89 percent of those with TB in 2017
were hospitalized for a minimum of two months
and many for longer. Even patients who were not
contagious and whose treatment consisted only
of taking oral medication could expect to spend
months in aTB facility, often coming in contact and
being infected with more serious, drug resistant
forms of the disease.The country’s TB decision
makers recognized the need to combat over-
hospitalization. However, resistance to change
was rife: Hospitals continued to be paid based
on inputs such as the numbers of beds kept full,
meaning they were incentivized to hospitalize
patients and keep them in the hospital for a longer
time than necessary. HFG worked to strengthen
the health departments’ response to this challenge.
Through our sustained technical assistance and
tools, we equipped health decision makers in our
four pilot regions with resources and knowledge
to better monitor TB hospital performance and
make evidence-based decisions to scale down the
bloated hospital system.
Strategic purchasing approaches for
TB hospitals and health departments
HFG developed and helped introduce important
tools—a TB hospital performance monitoring
system and a simulation module—that are
changing how Ukraine makes decisions on hospital
services for TB.We worked with the health
departments in Poltava, Odesa, and Lviv oblasts;
Kyiv City; and the national Ministry of Health
(MOH) to introduce these tools.Through HFG’s
work, both health departments and hospitals
now have a user-friendly electronic dashboard
to monitor hospital performance, and individual
facility reports are provided to each hospital on a
regular basis. Health departments also have access
to an HFG-developed simulation module that
allows them to simulate changes in variables, for
example, to estimate cost savings if hospitalization
of non-TB cases were eliminated or if the average
length of stay was reduced for certain types of
cases as per WHO recommendations.
Together, these tools are allowing TB decision
makers to answer three key questions of strategic
purchasing: what to buy, from whom to buy,
and how to buy. Significantly, HFG’s work has
demonstrated that strategic purchasing tools
can be successfully implemented for change even
before new provider payment mechanisms are
introduced in the country.
	
“Armed with the analysis from the HFG system, we’ve merged
threeTB hospitals and one HIV hospital into a single, more
efficient facility which can address our patients’ needs.”
~ Dr. Svetlana Esipenko, Director, Odesa Oblast Center for Socially Significant Diseases
@HFG.ImagebyAlexandrKatsaga
With the tools HFG has developed,
Ukraine’s TB decision makers are now
able to see at the click of a button
what kind of TB cases are being
hospitalized and for how long and
what kind of services TB hospitals are
providing, to whom, and at what cost.
HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018) 5
Improved analysis for better decision
making
With the strategic purchasing approaches
introduced by HFG,TB decision makers are
for the first time able to see what the health
department is “buying” in the way of TB services.
With HFG’s hospital performance monitoring
system, decision makers are seeing, for the first
time, what kind of services TB hospitals provide,
for whom, and at what cost, and are able to
compare costs and other indicators across various
facilities.They can know at the click of a button
what kinds of cases are being hospitalized, the
demographic make-up of these patients, and
their average length of hospital stay.The hospital
performance monitoring system showed that
more than 40 percent of patients in TB hospitals
did not have TB at all, meaning they could be more
safely and less expensively treated in the general
health care system.
Health departments can use these data to make
decisions on what services should be offered at
which facility. Hospitals too have regular access
to analysis on their facility’s performance and can
compare indicators—like types of cases treated or
the average length of stay—with other hospitals
in their oblast.This has created a strong incentive
among hospitals to improve both the effectiveness
of their work toward improved outcomes and the
quality of their data.
Costs saved from a streamlinedTB
hospital system
As a result of HFG’s work, health departments
in Poltava, Odesa, and Lviv oblasts and Kyiv
City have made concrete plans for TB hospital
optimization, based on the data generated by
the TB hospital performance monitoring system,
and have successfully gained approval from their
local government administration to make these
changes. Based on analysis of the monitoring
SCREENSHOT OFTHETB HOSPITAL PERFORMANCE MONITORING SYSTEM DASHBOARD
The page shows case mix of TB admission, length of stay, and patient demographics.
Hospitals and health departments have ongoing access to these dashboards with up-to-date data analysis.
HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018)6
system’s data, Odesa oblast has restructured its
TB hospitals, merging three TB hospitals and an
HIV hospital into a single, integrated care facility.
Lviv oblast has closed down two unneeded
TB hospitals, and its department of health has
reinvested the resulting savings of 2 million UAH
(approximately US$77,000) into upgrading the
remaining TB facilities.
After extensive work with the HFG simulation
model and in line with national guidelines and
WHO recommendations, the health departments
have stated plans to have a total of 10 TB hospitals
closed HFG focus oblasts.They also intend to
restructure their inpatient TB treatment networks
to improve efficiency and effectiveness of care
and shift more care out of hospitals and into the
primary health care sector.
“We knew we had to downsize, as the longer the
patient is hospitalized, the higher the chance he’ll be
infected with another form of TB.The HFG data helped
us downsize rationally.Lviv oblast now has 785 beds for
TB patients, down from more than 4,000.”
~ Dr. Lyubomir Rak, Director, Lviv Regional Phthisiopulmonological Clinical 		
Treatment and Diagnostic Center
SCREENSHOT OF THE SIMULATION MODULE IN THE TB HOSPITAL PERFORMANCE
MONITORING SYSTEM
@HFG.ImagebyAlexandrKatsaga
The simulation module allows TB decision makers to change variables to see the potential effect on
efficiency.This particular simulation shows that decreasing the average length of hospital stay to match
national recommendations and eliminating the hospitalization of non-TB cases in TB hospitals could reduce
the number of bed-days by 80 percent and decrease the number of hospitalizations by more than 50 percent.
HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018) 7
RESULT AREA 3
Implementing sustainable approaches for a more effective and efficient
general hospital sector
Following the early success of HFG’s work in
streamlining the TB hospital sector, the MOH
requested HFG’s broader assistance in preparing
the country for the introduction of strategic
purchasing. Our support was specifically sought
for developing a national cost accounting system
for health providers as well as a framework and
tools for introduction of a case-based hospital
payment system. 	
At the local level,this would allow health departments
to streamline, or optimize, the hospital system
to allow for a relatively smooth transition to a
new payment system.Additionally, it would equip
hospital managers with the understanding and tools
to take this optimization forward and prepare them
for payment based on the cases they treat rather
than by the number of beds they fill.
We collaborated closely with the MOH and
regional partners to adapt the data collection
and analysis approach we had used for the
TB work. Beginning in 2017 with Poltava oblast,
we introduced cost accounting and a discharged
patient database in general hospitals; this fed
into a general hospital performance monitoring
system for the oblast.As with TB hospitals, each
participating hospital received individual facility
reports, and the health department got access
to a simulation module for the general hospital
system. HFG’s data analytics system has since
expanded and now covers 213 hospitals across
Poltava, Odesa, and Lviv oblasts.As in the TB sector
earlier, the tool allows health decision makers
to see provider productivity, patient volume, and
structure of inpatient care across providers and
levels of care; cost of services; and potential areas
for efficiency gains.
Lviv oblast’s health department plans to restructure
its hospitals, closing unneeded buildings and beds.
It has calculated that optimization of the oblast’s
health care facilities in 2018 will free up 50 million
UAH (about US$1.9 million), which the department
will keep in its budget to use for improvement of
the oblast’s health care system.
“Data have been collected for years and
years on paper. The papers have just sat
somewhere, maybe to be eaten by mice. Now
with the HFG system, we finally have data
that we can use.We will definitely continue
to collect data and use the system beyond
the end of the HFG project. It is a very good
management tool for us.”
~ Dr. Iryna Mykychak, Director, Lviv Oblast Health Department
@SaraFeinstein
HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018)8
“HFG developed instruments that we
can use for implementation of strategic
purchasing.They are based on our real
situation and not just theory… and now
we are moving toward implementation.”
~ Oleg Petrenko, Head of the new National Health
Service of Ukraine
RESULT AREA 4
Established systems enabling Ukraine to introduce strategic purchasing nationally
HFG has played a key role in supporting Ukraine’s
transition to strategic health purchasing, which is
a major step toward improved resource use for
health.The country has made some important
decisions that will ensure that public health funds
are used to efficiently purchase health services
and will begin case-based payment for hospitals in
2019.We worked hand-in-hand with government
partners and stakeholders in Ukraine to establish
the building blocks for strategic purchasing—
ensuring unified information systems are in
place, establishing a system for data analytics, and
supporting the development of the new case-
based payment system itself.
Building a national cost accounting system
In 2017, HFG’s cost accounting approach for
determining the cost of delivering services, which
we had earlier piloted in four regions of Ukraine,
received approval from Ukraine’s Cabinet of
Ministers to become the single methodology to
be used in calculating payment rates for the case-
based hospital payment system for all hospitals
across the country.This marks a huge step toward
institutionalization and planned introduction of
the case-based hospital payment system in 2019.
Establishing a system for data analytics
Expanding upon the hospital performance
monitoring system HFG had developed and
helped introduce, we developed a data analytics
platform linking cost accounting and discharged
patient data. NHSU, the strategic purchaser
in Ukraine, can use it to monitor hospital
performance.We designed the platform to include
an “early warning system” that alerts the payer
and the hospital itself to any activity outside
of the norms for that hospital and signals the
payer to look into the situation.The analytics
platform also includes a simulation module similar
to the one we introduced at the oblast health
department level. Information from this data
analytics platform is informing the design of the
new case-based hospital payment system and will
later be used for monitoring it.
Designing the new case-based hospital
payment system
HFG provided extensive support to the NHSU and
MOH to design a new payment model and define
the implementation steps needed to shift from the
current input-based line-item payments to a more
comprehensive output-based payment system based
@HFG.ImagebyOlivierLeBlanc
HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018) 9
HFG PROJECT COMPONENTS: SUPPORTING DATA-DRIVEN STRATEGIC HEALTH
PURCHASING DECISIONS IN UKRAINE
on DRGs for inpatient care.Taking a “learning by
doing” approach, we worked closely with the MOH
and NHSU to develop a new case-based hospital
payment system that would serve as a transition to
the national DRG system. In designing the case-based
payment system, we used internationally recognized
DRG development methodology and hospital-level
data from the pilot regions in Ukraine, including cost
accounting results from 70 general hospitals and data
for more than one million discharged patients from
the hospitals in the pilot regions.We also developed
steps for implementation of the system at the oblast
level. In May 2018, the NHSU and MOH received
the prime minister’s approval to move forward
with piloting the proposed hospital payment system
in Poltava oblast (and potentially other oblasts)
beginning in 2019.
Building institutional capacity on
strategic purchasing
We lent early capacity-building support to NHSU
when it was established by the Government
of Ukraine in March 2018 and provided initial
technical assistance to help the new agency
learn both the theory of strategic purchasing
and the nuts and bolts of the instruments for its
implementation.As a result of the systems we put
in place and handed over to NHSU, the strategic
partner now has a basic framework in place to
support further development and nationwide
implementation of the new case-based hospital
payment system and toward improved health
outcomes.
• TB cost data
• TB patient
data
Combining
data from all
sources in a
single online
platform
Analysis
Reporting
TB hospital performance
monitoring system
Individual TB hospital
reports
TB case-based hospital
payment system
TB simulation models
General hospital performance
monitoring system
Individual hospital
reports
Geographical mapping
Simulation module for the
general hospital system
Building a national cost
accounting system
Data snalytics for
NHSU
Case-based hospital
provider payment system
Building capacity of the
NHSU
TB strategic
purchasing
Data collection Data
processing
Project
components
National
institutionalization
• Cost data
• Patient data
TB
hospitals
General
hospitals
Strategic health
purchasing
HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018)10
@woodbe
HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018) 11
LESSONS LEARNED
HFG’s work in Ukraine has demonstrated that
even before new payment systems, strategic
purchasing approaches can have significant positive
results toward improved resource use. Our TB
strategic purchasing activity empowered health care
providers and decision makers with data analysis
on hospital effectiveness, resulting in increased
buy-in for reforms, structural changes to redirect
resources more wisely, and initiatives from facility
managers themselves to restructure and reprofile
their facilities.
Implementation of our new approaches and
systems in Ukraine has highlighted the importance
of building understanding and consensus.At the
hospital level, cost accounting implementation
highlighted the need for ongoing training and
remote support as facility-level finance specialists
and statisticians undertake the cost accounting
process; this support is critical to ensure that the
facility staff understand both the technical steps
as well as the objectives and importance of the
exercise.The experience also showed that when a
feedback loop is in place and health care facilities
have access to valuable analysis based on the data
they collect and submit, data quality improves
significantly.At the national level, HFG’s work in
Ukraine underlined the importance of spending
time to engage a wide array of key stakeholders—
in this case, the health, finance, and economics
ministries, along with key hospital managers—in
substantive policy dialogue to ensure common
understanding of and communication on key
aspects of the process.
Our work also highlighted a few key takeaways on
presentation of data: First, graphic presentation of
data and analysis is of utmost importance in helping
people understand information; and second, health
care facilities understand their own performance
better when they can see how their indicators
compare with other facilities, and benchmarking
against their peers serves as an incentive for
facilities to improve.
SUSTAINABILITY
Throughout its work in Ukraine, HFG worked
hand-in-hand with government partners and key
stakeholders of the health reforms agenda in the
country.We ensured ownership of the newly
introduced systems, databases, and processes
at each step of implementation and provided
partners with intensive hands-on experience
and support to lead the implementation.The
three pilot oblasts and Kyiv City1
now fully own
their hospital performance monitoring systems:
They upload the data themselves, regularly
access analysis, generate their own reports, and
use data analysis for decision making.They have
also stated their commitment to continue using
the hospital performance monitoring system
beyond the term of the HFG project, citing it as
a good management tool.At the national level,
our cost accounting methodology has been
institutionalized through a national approval by
the Cabinet of Ministers.
The biggest threat to the sustainability of the
strategic purchasing framework and tools stems
from the chance of a political change or instability.
With both parliamentary and presidential elections
scheduled for 2019, it is a race against time to see if
the NHSU can become strongly institutionalized and
the policies on moving toward strategic purchasing
can sufficiently be solidified so that a change in
government would not push the country off its
current trajectory toward strategic purchasing.
Taking the reforms process to the next level
requires that the NHSU receive continued support
in implementing strategic purchasing going forward.
Effective implementation of strategic purchasing
will require constant monitoring and tweaking of
incentives based on the results from monitoring.With
the NHSU completely new at strategic purchasing
and the new payment system to be rolled out across
the country,the NHSU will require continued hands-
on technical assistance and donor support.
LOOKING FORWARD
1
	 The three pilot oblasts have the hospital monitoring system for all hospitals (TB hospitals and general hospitals), while Kyiv
City has it only for TB hospitals.
HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018)12
REFERENCES
Cabinet of Ministers of Ukraine. 2017. Пocтаoва від 27 грудня 2017 р. № 1075“Про затвердження
Методики розрахунку вартості послуги з медичного обслуговування” (Ruling of 27 December
2017, № 1075 “On Approving the Methodology for Calculating the Cost of Medical Services”),Available
at: http://zakon2.rada.gov.ua/laws/show/1075-2017-п. Accessed 27 August 2018.
Central Intelligence Agency. World Fact Book, Country Comparison: HIV/AIDS – Adult Prevalence Rate.
Available at: https://www.cia.gov/library/publications/the-world-factbook/rankorder/2155rank.html.
Accessed 15 August 2018.
Cowley, Peter and Baktygul Akkazieva.August 2012. Optimization of HIV/AIDS ServicesWithin the Context of
Health Care Reform in Ukraine. Bethesda, MD: Health Systems 20/20 project,Abt Associates Inc.
Doroshenko, Olena, LisaTarantino, Peter Cowley, and Ben Johns.April 2015. Final Report on the Cost-
Effectiveness of Providing HIVTesting and Counseling Using RapidTests at the Primary Health Care Level in
Ukraine. Bethesda, MD: Health Finance  Governance project,Abt Associates, Inc.
Menon, Rekha. 2010. Europe and Central Asia Knowledge Brief, Combating Ukraine’s Health Crisis: Lessons from
Europe, Vol. 17, January 2010.Available at: http://siteresources.worldbank.org/INTECALEA/Resources/
KB_V17_2_2010.pdf.Accessed 18 April 2018.
Ministry of Health of Ukraine. Key Steps toTransforming Ukrainian Healthcare. Available at: http://en.moz.gov.
ua/healthcare-reform.Accessed 15 August 2018.
National Health Reform Strategy for Ukraine 2015–2020.Available at: http://healthsag.org.ua/wp-content/
uploads/2015/03/Strategiya_Engl_for_inet.pdf.
Nodieva A, I. Jansone, L. Broka, et al. 2010. International Journal ofTuberculosis and Lung Disease, 2010,
14(4):427-433, as cited in Barton Smith, Амбулаторное и стационарное лечение больных
туберкулезом, unpublished PowerPoint presentation, presented at a seminar of the USAID Quality
Health Care Project, Bishkek, Kyrgyz Republic, 2015.
Shen G., Z. Xue, X. Shen, et al. 2006. Recurrent tuberculosis and exogenous re-infection, Shanghai, China. Emerging
Infectious Disease. 2006; 12:1776–1778, as cited in Barton Smith, Амбулаторное и стационарное
лечение больных туберкулезом, unpublished PowerPoint presentation, presented at a seminar of the
USAID Quality Health Care Project, Bishkek, Kyrygz Republic, 2015.
StopTB Partnership. High Burden Countries.Available at: http://www.stoptb.org/countries/tbdata.asp.
Accessed 15 August 2018.
World Bank. 2017. Ukraine Public Finance Review (English).Washington, D.C.:World Bank Group.Available
at: http://documents.worldbank.org/curated/en/476521500449393161/Ukraine-Public-finance-review.
Accessed 23 May 2018.
World Health Organization. European Health Information Gateway. Available at: https://gateway.euro.who.int/
en/hfa-explorer.Accessed 21 June 2018.
@HFG.ImagebyOlivierLeBlanc
USAID Health Project Improves Healthcare in Ukraine

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USAID Health Project Improves Healthcare in Ukraine

  • 1. USAID’s Health Finance and Governance (HFG) project helps to improve health in developing countries by expanding people’s access to health care. Led by Abt Associates, the project team works with partner countries to increase their domestic resources for health, manage those precious resources more effectively, and make wise purchasing decisions. HFG UKRAINE FINAL REPORT @HFG.ImagebyOlivierLeBlanc
  • 2. The Health Finance and Governance (HFG) Project works to address some of the greatest challenges facing health systems today. Drawing on the latest research, the project implements strategies to help countries increase their domestic resources for health, manage those precious resources more effectively, and make wise purchasing decisions.The project also assists countries in developing robust governance systems to ensure that financial investments for health achieve their intended results. With activities in more than 40 countries, HFG collaborates with health stakeholders to protect families from catastrophic health care costs, expand access to priority services – such as maternal and child health care – and ensure equitable population coverage through: • Improving financing by mobilizing domestic resources, reducing financial barriers, expanding health insurance, and implementing provider payment systems; • Enhancing governance for better health system management and greater accountability and transparency; • Improving management and operations systems to advance the delivery and effectiveness of health care, for example, through mobile money and public financial management; and • Advancing techniques to measure progress in health systems performance, especially around universal health coverage. The HFG project (2012-2018) is funded by the U.S.Agency for International Development (USAID) and is led by Abt Associates in collaboration with Avenir Health, Broad Branch Associates, Development Alternatives Inc., the Johns Hopkins Bloomberg School of Public Health, Results for Development Institute, RTI International, and Training Resources Group, Inc. The project is funded under USAID cooperative agreement AID-OAA-A-12-00080. To learn more, visit www.hfgproject.org ABOUT THE HEALTH FINANCE AND GOVERNANCE PROJECT 2012-2018 THE WIDE GROUND COVERED BY HFG HEALTH SYSTEMS STREGTHENING ACTIVITIES IN UKRAINE KYIV CITY HIV testing integration HFG ACTIVITIES Strategic health purchasing for TB and general hospitals TB strategic purchasing HFG strategic purchasing interventions covered a total of which HFG’s data analytics include more than of which 213 hospitals 2.1MILLION hospital cases 28 are TB hospitals 34,000 are TB hospital cases NUMBER OF PARTICIPATING HOSPITALS Name General (non-TB) hospitals TB hospitals Lviv Oblast 67 11 Odesa Oblast 57 4 Poltava Oblast 61 8 Kyiv City 5
  • 3. HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018) 1 CHALLENGES Since gaining independence more than a quarter century ago, Ukraine has tried to provide quality, accessible health care to its people. Despite a constitutional guarantee of free health care for all and health sector expenditures of 7.6 percent of GDP, which are above average for a country of its income level, Ukraine’s health indicators have remained poor compared to other countries in Europe.The country reports one of the highest HIV/AIDS prevalence rates in Europe, one of the worst multidrug resistant and extremely drug resistant tuberculosis (TB) epidemics in the world, and high rates of non-communicable diseases like heart disease. Despite nominally free health care, Ukrainians make high, primarily unofficial out-of- pocket payments and are generally unsatisfied with the health care they receive (World Bank 2017). A major challenge emanates from Ukraine’s primarily public health care system’s top-heavy structure inherited from the Soviet Union.The country has a vast hospital network with almost twice as many hospital beds per capita as the European Union.The World Bank refers to Ukraine as having an “extensive health care infrastructure, but low quality of health care services.” (World Bank 2017, p. 49) The hospital networks are costly to maintain—receiving 65 percent of health funds—and the current payment system encourages hospitalization rather than incentivizing efficiency or improved treatment outcomes. To address such issues toward improved health outcomes, in late 2017 Ukraine codified into law important changes in health care provision and financing and is currently undertaking a series of rigorous health system reforms, including a move to strategic purchasing. Done right, when the government shifts away from paying hospitals based on inputs and instead pays for services specific to diagnosis and strategically readjusts incentives as needed,provider behavior can be improved and costs contained through enhanced focus on preventive care and reduction of unnecessary hospitalizations. HFG OVERVIEW IN UKRAINE @zokov
  • 4. HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018)2 CHANGE The Health Finance and Governance (HFG) project began its work in Ukraine in 2013, providing evidence, tools, and training to help the country revamp its health care system and more effectively address the health challenges facing its population. We first implemented a pilot in one oblast (province) focused on integrating HIV counseling and testing into primary health care.Then, through our extensive strategic purchasing work beginning in 2015—first focused on TB hospitals and then more broadly—we contributed to the framework for establishment of a national strategic purchasing system that could remedy many of the health care system inefficiencies Ukraine inherited from the Soviet Union. Our efforts have succeeded in building stakeholder understanding and consensus on strategic purchasing for health.A new health payer, the National Health Service of Ukraine (NHSU), was established in 2018 to support strategic purchasing rollout across the country. Implementation of the strategic purchasing approaches that HFG designed, developed, and helped introduce has facilitated efficiency improvements in the hospital sector, including overall restructuring, repurposing of unnecessary facilities, unification of departments, and shifting of hospital specializations to improve efficiencies and patient care.The oblasts where we piloted these tools are reporting cost savings from streamlined hospital systems.This implementation has changed provider performance and contributed to thoughtful design of a new case-based hospital payment system. HFG demonstrated that strategic purchasing approaches could improve resource use and contribute to improvements in health systems. The cost-accounting methodology we developed and helped introduce has received approval from the Cabinet of Ministers of Ukraine as the single approved methodology to inform tariff policy and design of new provider payment mechanisms for case-based payments in the country.The new case-based hospital payment system that HFG designed together with national partners has been approved by the prime minister for pilot introduction in 2019 as a transition system to the national diagnosis-related group (DRG) system in 2020. Our work has, thus, put in place the building blocks for strategic purchasing in Ukraine and demonstrated their viability and efficiency impact, paving the way toward implementation of strategic health purchasing throughout the country. “To tell the truth, we thought we understood everything before. But then, we started to cooperate with HFG and looked more deeply at our facilities and their use of resources, and how the use of resources affected the provision of quality care and we looked at forecasting, we understood this was a completely different instrument.We saw we needed to redirect resources toward quality of care.We needed to turn our brains over, to a new way of thinking.” ~ Dr.Viktor Lysak, Director, Poltava Oblast Health Department @HFG.ImagebyOlivierLeBlanc
  • 5. HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018) 3 RESULT AREA 1 Demonstrated effectiveness and efficiency of HIV testing at the primary health care level Since 2010,Ukraine has been strengthening primary health care and restructuring secondary-care levels in select regions of the country,but HIV services remained outside of this reform;these services were available only at a specialized,vertical network of HIV clinics.Aiming to provide evidence for a national policy dialogue on integrating HIV care into general (non- specialized) facilities,HFG undertook a cost efficiency study on the viability of providing HIV services through the general primary health care network. To pilot this approach, we worked in collaboration with the Chernihiv oblast health department to provide training and ensure access to necessary equipment and supplies for HIV counseling and testing at the primary health care level.We also supported the pilot primary health care facilities in letting the public know these new services were available. Our study demonstrated that in the pilot districts of Chernihiv oblast, HIV counseling and testing per capita increased 3.52 times; the number of HIV cases detected per capita doubled; the number of people tested from among the most at-risk populations increased eightfold; and the cost per detected case decreased by 34 percent in pilot areas versus non-pilot areas (Doroshenko 2015). Our study provided the Ukraine government with evidence and lessons on integrating HIV counseling and testing into non-specialized primary health care, thereby contributing to the national policy dialogue on HIV integration into primary health care as a way to improve access and efficiency. MAKING A DIFFERENCE @HFG.ImagebyOlivierLeBlanc
  • 6. HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018)4 RESULT AREA 2 Improved TB care through a streamlined TB hospital system Ukraine’s multidrug resistant TB epidemic is in part blamed on the long hospitalizations that most TB patients undergo. In Odesa oblast, for example, the health department reports that a startling 89 percent of those with TB in 2017 were hospitalized for a minimum of two months and many for longer. Even patients who were not contagious and whose treatment consisted only of taking oral medication could expect to spend months in aTB facility, often coming in contact and being infected with more serious, drug resistant forms of the disease.The country’s TB decision makers recognized the need to combat over- hospitalization. However, resistance to change was rife: Hospitals continued to be paid based on inputs such as the numbers of beds kept full, meaning they were incentivized to hospitalize patients and keep them in the hospital for a longer time than necessary. HFG worked to strengthen the health departments’ response to this challenge. Through our sustained technical assistance and tools, we equipped health decision makers in our four pilot regions with resources and knowledge to better monitor TB hospital performance and make evidence-based decisions to scale down the bloated hospital system. Strategic purchasing approaches for TB hospitals and health departments HFG developed and helped introduce important tools—a TB hospital performance monitoring system and a simulation module—that are changing how Ukraine makes decisions on hospital services for TB.We worked with the health departments in Poltava, Odesa, and Lviv oblasts; Kyiv City; and the national Ministry of Health (MOH) to introduce these tools.Through HFG’s work, both health departments and hospitals now have a user-friendly electronic dashboard to monitor hospital performance, and individual facility reports are provided to each hospital on a regular basis. Health departments also have access to an HFG-developed simulation module that allows them to simulate changes in variables, for example, to estimate cost savings if hospitalization of non-TB cases were eliminated or if the average length of stay was reduced for certain types of cases as per WHO recommendations. Together, these tools are allowing TB decision makers to answer three key questions of strategic purchasing: what to buy, from whom to buy, and how to buy. Significantly, HFG’s work has demonstrated that strategic purchasing tools can be successfully implemented for change even before new provider payment mechanisms are introduced in the country. “Armed with the analysis from the HFG system, we’ve merged threeTB hospitals and one HIV hospital into a single, more efficient facility which can address our patients’ needs.” ~ Dr. Svetlana Esipenko, Director, Odesa Oblast Center for Socially Significant Diseases @HFG.ImagebyAlexandrKatsaga With the tools HFG has developed, Ukraine’s TB decision makers are now able to see at the click of a button what kind of TB cases are being hospitalized and for how long and what kind of services TB hospitals are providing, to whom, and at what cost.
  • 7. HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018) 5 Improved analysis for better decision making With the strategic purchasing approaches introduced by HFG,TB decision makers are for the first time able to see what the health department is “buying” in the way of TB services. With HFG’s hospital performance monitoring system, decision makers are seeing, for the first time, what kind of services TB hospitals provide, for whom, and at what cost, and are able to compare costs and other indicators across various facilities.They can know at the click of a button what kinds of cases are being hospitalized, the demographic make-up of these patients, and their average length of hospital stay.The hospital performance monitoring system showed that more than 40 percent of patients in TB hospitals did not have TB at all, meaning they could be more safely and less expensively treated in the general health care system. Health departments can use these data to make decisions on what services should be offered at which facility. Hospitals too have regular access to analysis on their facility’s performance and can compare indicators—like types of cases treated or the average length of stay—with other hospitals in their oblast.This has created a strong incentive among hospitals to improve both the effectiveness of their work toward improved outcomes and the quality of their data. Costs saved from a streamlinedTB hospital system As a result of HFG’s work, health departments in Poltava, Odesa, and Lviv oblasts and Kyiv City have made concrete plans for TB hospital optimization, based on the data generated by the TB hospital performance monitoring system, and have successfully gained approval from their local government administration to make these changes. Based on analysis of the monitoring SCREENSHOT OFTHETB HOSPITAL PERFORMANCE MONITORING SYSTEM DASHBOARD The page shows case mix of TB admission, length of stay, and patient demographics. Hospitals and health departments have ongoing access to these dashboards with up-to-date data analysis.
  • 8. HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018)6 system’s data, Odesa oblast has restructured its TB hospitals, merging three TB hospitals and an HIV hospital into a single, integrated care facility. Lviv oblast has closed down two unneeded TB hospitals, and its department of health has reinvested the resulting savings of 2 million UAH (approximately US$77,000) into upgrading the remaining TB facilities. After extensive work with the HFG simulation model and in line with national guidelines and WHO recommendations, the health departments have stated plans to have a total of 10 TB hospitals closed HFG focus oblasts.They also intend to restructure their inpatient TB treatment networks to improve efficiency and effectiveness of care and shift more care out of hospitals and into the primary health care sector. “We knew we had to downsize, as the longer the patient is hospitalized, the higher the chance he’ll be infected with another form of TB.The HFG data helped us downsize rationally.Lviv oblast now has 785 beds for TB patients, down from more than 4,000.” ~ Dr. Lyubomir Rak, Director, Lviv Regional Phthisiopulmonological Clinical Treatment and Diagnostic Center SCREENSHOT OF THE SIMULATION MODULE IN THE TB HOSPITAL PERFORMANCE MONITORING SYSTEM @HFG.ImagebyAlexandrKatsaga The simulation module allows TB decision makers to change variables to see the potential effect on efficiency.This particular simulation shows that decreasing the average length of hospital stay to match national recommendations and eliminating the hospitalization of non-TB cases in TB hospitals could reduce the number of bed-days by 80 percent and decrease the number of hospitalizations by more than 50 percent.
  • 9. HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018) 7 RESULT AREA 3 Implementing sustainable approaches for a more effective and efficient general hospital sector Following the early success of HFG’s work in streamlining the TB hospital sector, the MOH requested HFG’s broader assistance in preparing the country for the introduction of strategic purchasing. Our support was specifically sought for developing a national cost accounting system for health providers as well as a framework and tools for introduction of a case-based hospital payment system. At the local level,this would allow health departments to streamline, or optimize, the hospital system to allow for a relatively smooth transition to a new payment system.Additionally, it would equip hospital managers with the understanding and tools to take this optimization forward and prepare them for payment based on the cases they treat rather than by the number of beds they fill. We collaborated closely with the MOH and regional partners to adapt the data collection and analysis approach we had used for the TB work. Beginning in 2017 with Poltava oblast, we introduced cost accounting and a discharged patient database in general hospitals; this fed into a general hospital performance monitoring system for the oblast.As with TB hospitals, each participating hospital received individual facility reports, and the health department got access to a simulation module for the general hospital system. HFG’s data analytics system has since expanded and now covers 213 hospitals across Poltava, Odesa, and Lviv oblasts.As in the TB sector earlier, the tool allows health decision makers to see provider productivity, patient volume, and structure of inpatient care across providers and levels of care; cost of services; and potential areas for efficiency gains. Lviv oblast’s health department plans to restructure its hospitals, closing unneeded buildings and beds. It has calculated that optimization of the oblast’s health care facilities in 2018 will free up 50 million UAH (about US$1.9 million), which the department will keep in its budget to use for improvement of the oblast’s health care system. “Data have been collected for years and years on paper. The papers have just sat somewhere, maybe to be eaten by mice. Now with the HFG system, we finally have data that we can use.We will definitely continue to collect data and use the system beyond the end of the HFG project. It is a very good management tool for us.” ~ Dr. Iryna Mykychak, Director, Lviv Oblast Health Department @SaraFeinstein
  • 10. HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018)8 “HFG developed instruments that we can use for implementation of strategic purchasing.They are based on our real situation and not just theory… and now we are moving toward implementation.” ~ Oleg Petrenko, Head of the new National Health Service of Ukraine RESULT AREA 4 Established systems enabling Ukraine to introduce strategic purchasing nationally HFG has played a key role in supporting Ukraine’s transition to strategic health purchasing, which is a major step toward improved resource use for health.The country has made some important decisions that will ensure that public health funds are used to efficiently purchase health services and will begin case-based payment for hospitals in 2019.We worked hand-in-hand with government partners and stakeholders in Ukraine to establish the building blocks for strategic purchasing— ensuring unified information systems are in place, establishing a system for data analytics, and supporting the development of the new case- based payment system itself. Building a national cost accounting system In 2017, HFG’s cost accounting approach for determining the cost of delivering services, which we had earlier piloted in four regions of Ukraine, received approval from Ukraine’s Cabinet of Ministers to become the single methodology to be used in calculating payment rates for the case- based hospital payment system for all hospitals across the country.This marks a huge step toward institutionalization and planned introduction of the case-based hospital payment system in 2019. Establishing a system for data analytics Expanding upon the hospital performance monitoring system HFG had developed and helped introduce, we developed a data analytics platform linking cost accounting and discharged patient data. NHSU, the strategic purchaser in Ukraine, can use it to monitor hospital performance.We designed the platform to include an “early warning system” that alerts the payer and the hospital itself to any activity outside of the norms for that hospital and signals the payer to look into the situation.The analytics platform also includes a simulation module similar to the one we introduced at the oblast health department level. Information from this data analytics platform is informing the design of the new case-based hospital payment system and will later be used for monitoring it. Designing the new case-based hospital payment system HFG provided extensive support to the NHSU and MOH to design a new payment model and define the implementation steps needed to shift from the current input-based line-item payments to a more comprehensive output-based payment system based @HFG.ImagebyOlivierLeBlanc
  • 11. HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018) 9 HFG PROJECT COMPONENTS: SUPPORTING DATA-DRIVEN STRATEGIC HEALTH PURCHASING DECISIONS IN UKRAINE on DRGs for inpatient care.Taking a “learning by doing” approach, we worked closely with the MOH and NHSU to develop a new case-based hospital payment system that would serve as a transition to the national DRG system. In designing the case-based payment system, we used internationally recognized DRG development methodology and hospital-level data from the pilot regions in Ukraine, including cost accounting results from 70 general hospitals and data for more than one million discharged patients from the hospitals in the pilot regions.We also developed steps for implementation of the system at the oblast level. In May 2018, the NHSU and MOH received the prime minister’s approval to move forward with piloting the proposed hospital payment system in Poltava oblast (and potentially other oblasts) beginning in 2019. Building institutional capacity on strategic purchasing We lent early capacity-building support to NHSU when it was established by the Government of Ukraine in March 2018 and provided initial technical assistance to help the new agency learn both the theory of strategic purchasing and the nuts and bolts of the instruments for its implementation.As a result of the systems we put in place and handed over to NHSU, the strategic partner now has a basic framework in place to support further development and nationwide implementation of the new case-based hospital payment system and toward improved health outcomes. • TB cost data • TB patient data Combining data from all sources in a single online platform Analysis Reporting TB hospital performance monitoring system Individual TB hospital reports TB case-based hospital payment system TB simulation models General hospital performance monitoring system Individual hospital reports Geographical mapping Simulation module for the general hospital system Building a national cost accounting system Data snalytics for NHSU Case-based hospital provider payment system Building capacity of the NHSU TB strategic purchasing Data collection Data processing Project components National institutionalization • Cost data • Patient data TB hospitals General hospitals Strategic health purchasing
  • 12. HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018)10 @woodbe
  • 13. HFG UKRAINE FINAL REPORT | HEALTH FINANCE AND GOVERNANCE PROJECT (2012-2018) 11 LESSONS LEARNED HFG’s work in Ukraine has demonstrated that even before new payment systems, strategic purchasing approaches can have significant positive results toward improved resource use. Our TB strategic purchasing activity empowered health care providers and decision makers with data analysis on hospital effectiveness, resulting in increased buy-in for reforms, structural changes to redirect resources more wisely, and initiatives from facility managers themselves to restructure and reprofile their facilities. Implementation of our new approaches and systems in Ukraine has highlighted the importance of building understanding and consensus.At the hospital level, cost accounting implementation highlighted the need for ongoing training and remote support as facility-level finance specialists and statisticians undertake the cost accounting process; this support is critical to ensure that the facility staff understand both the technical steps as well as the objectives and importance of the exercise.The experience also showed that when a feedback loop is in place and health care facilities have access to valuable analysis based on the data they collect and submit, data quality improves significantly.At the national level, HFG’s work in Ukraine underlined the importance of spending time to engage a wide array of key stakeholders— in this case, the health, finance, and economics ministries, along with key hospital managers—in substantive policy dialogue to ensure common understanding of and communication on key aspects of the process. Our work also highlighted a few key takeaways on presentation of data: First, graphic presentation of data and analysis is of utmost importance in helping people understand information; and second, health care facilities understand their own performance better when they can see how their indicators compare with other facilities, and benchmarking against their peers serves as an incentive for facilities to improve. SUSTAINABILITY Throughout its work in Ukraine, HFG worked hand-in-hand with government partners and key stakeholders of the health reforms agenda in the country.We ensured ownership of the newly introduced systems, databases, and processes at each step of implementation and provided partners with intensive hands-on experience and support to lead the implementation.The three pilot oblasts and Kyiv City1 now fully own their hospital performance monitoring systems: They upload the data themselves, regularly access analysis, generate their own reports, and use data analysis for decision making.They have also stated their commitment to continue using the hospital performance monitoring system beyond the term of the HFG project, citing it as a good management tool.At the national level, our cost accounting methodology has been institutionalized through a national approval by the Cabinet of Ministers. The biggest threat to the sustainability of the strategic purchasing framework and tools stems from the chance of a political change or instability. With both parliamentary and presidential elections scheduled for 2019, it is a race against time to see if the NHSU can become strongly institutionalized and the policies on moving toward strategic purchasing can sufficiently be solidified so that a change in government would not push the country off its current trajectory toward strategic purchasing. Taking the reforms process to the next level requires that the NHSU receive continued support in implementing strategic purchasing going forward. Effective implementation of strategic purchasing will require constant monitoring and tweaking of incentives based on the results from monitoring.With the NHSU completely new at strategic purchasing and the new payment system to be rolled out across the country,the NHSU will require continued hands- on technical assistance and donor support. LOOKING FORWARD 1 The three pilot oblasts have the hospital monitoring system for all hospitals (TB hospitals and general hospitals), while Kyiv City has it only for TB hospitals.
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