Demographic Platform for the Formation of a Model Healthcare Budget (Reformatory Value and Actuarial Valuation)

Abstract

The practice of social budgeting in Ukrainian healthcare sector requires certain improvement. This is determined by a number of factors: the limitedness of principles and simplification of the mechanisms for formation the budgets of medical institutions; the disregard for demographic factors, importance of which is growing in the context of the Pandemic-19; and the conduct of military actions on the territory of Ukraine. The article defines the theoretical foundations of the organization of healthcare social budget and the institutional characteristics of its improvement. The budgeting process in the country’s healthcare system is considered, including the history of healthcare reform, and its inconsistency with the needs of the population in medical treatment is noted. Risks in the healthcare budgeting process mostly emerge because of the disregard for demographic factors of population’s morbidity whose impact on budgeting significantly increases in the current crisis situation in Ukraine. Therefore, the problem of balancing local budgets and determining the amount of financial assistance based on an improved normative approach seems to be relevant. The aim of the article is to implement the problem of financial stabilization of the healthcare system based on the cost elasticity depending on demographic factors. The novelty of it is the theoretical substantiation and modeling of financial processes, taking into account the age-sex structure of the population. Along with the deductive one, the probabilistic research method was used. As a new approach to the organization of healthcare social budget, a funding model based on gender and age is proposed. A medical and demographic matrix has been developed that allows to perform various operative financial calculations and determine the cost of medical treatment of the population depending on the structure and dynamics of demographic factors.