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Author(s): N. Dekhtyar

Journal: Economics of Development
ISSN 1683-1942

Volume: 66;
Issue: 2;
Start page: 43;
Date: 2013;
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Keywords: sanatorium-resort business | medical tourism | recreational complexes | government regulation of health care | financing of medical industry

During the years of Ukraine’s independence sanatorium-resort system was hardly paid attention from the state. Lack of budget funding led to a cut in government programmes expenditure, despite the fact that most resorts in Ukraine have several medical factors and are referred to a mixed type: balneo-mud, balneo-climatic, climatic-balneo-mud. Attracting foreign consumers is restricted not only by the typical problems of undeveloped infrastructure, but also by distinct approaches to the organisation of treatment and payment, and, globally, by differences in the fundamentals of medical sciences, the structure and framework of health institutions and supporting facilities. Classification and estimation methods of recreational resources sometimes differ a lot, so that it is difficult to compare the potential of several countries and provide permanent hospital and home treatment for a traveller. The overall level of funding allocated to health sets the boundaries that determine which services will be available to the population. This overall level is determined partly by a country’s wealth, the proportion of national income devoted to health, and inflows of funds for health from external partners. The most revealing indicator demonstrating the quality of population’s health is a life duration. Since 1961 life duration in Ukraine decreased from 70.2 to 68.8 in 2012. The world average was 70 years in 2012. Total health expenditure is the sum of public and private health expenditures in relation to the total population. The world average indicator was 950.4 US$ in 2010, while in Ukraine this figure was 234.4 US$. Public health expenditure consists of recurrent and capital spending from government (central and local) budgets, external borrowings and grants (including donations from international agencies and nongovernmental organizations), and social (or compulsory) health insurance funds. The world average value was 6.5 % in 2010, in Ukraine public health expenditure was 4.4 % of GDP with 3.7 average (1995 – 2010). Ukraine should work precisely on its health care system, otherwise it will not gain decent reputation in the market of medical tourism.
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