Industry Trend Analysis - A Transformative Year For Healthcare - MAR 2018

BMI View : T he long-overdue signing of Ukraine's healthcare reform bill provides long-term opportunities to drugmakers and healthcare providers alike. While the impact on revenue-generating opportunities will be limited through its implementation phase in 2018, both access to and demand for medicines will increase over the coming years. Government healthcare expenditure will also be boosted by these approved plans over the short term.

The year 2018 will be a vital period for the long-term future of healthcare in Ukraine and will consequently shape the long-term growth opportunities for pharmaceutical firms. In October 2017, the Verkhovna Rada (Ukrainian parliament) passed bill No. 6327, 'On State Financial Guarantees For The Provision Of Medical Services And Medication' ( see ' Reform Bill Passing Does Not Alter Negative Healthcare View ' , October 24 2017).

This was followed in November by the passing of bill No. 6604, 'On Amendments To The Budget Code Of Ukraine On The Provision of State Financial Guarantees For The Provision Of Medical Aid And Medicines' and bill No. 7117, 'On Increasing Access And Quality Of Medical Services In Villages'. These two bills, which provide state funding for the implementation of medical reforms and for the network of rural medical institutions respectively, are the final legislative requirements needed before the country's health reforms can be finally implemented. On December 28, President Poroshenko signed the laws, enabling the documents to come into force.

Reforms To Boost Public Spending
Public Healthcare Expenditure (UAHbn)
e/f = BMI estimate/forecast. Source: Ministry of Health, BMI

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