PPP healthcare projects in Ukraine poised for a strong uptrend in the years to come

In Ukraine current healthcare expenditure accounts for 3.6-4.2% of GDP, significantly lower than the 9% allocated on average in EU member states. The depreciation ratio for fixed assets in healthcare exceeds 50%. To fill the gap of deficient financing, the government intends to rely more on extrabudgetary resources, including PPP opportunities.
Public-private partnership is a relatively new concept in Ukraine. A law meant to define and regulate these types of projects between public authorities and private entities came into force in October 2010. Currently, the overwhelming share of PPP projects are for the construction of roads and for water supply projects. In the healthcare sector this concept has a negligible effect so far. This is mostly a result of the almost non-existent private healthcare segment, which according to various sources is responsible for less than 1% of the Ukrainian healthcare sector.

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