Modernization of Health Care Budget Allocation in Transitional Economies: Regional Practice Testimony

The Russian Federation has a multichannel budgetary and insurance health care financing which is characterized by the multiplicity of sources of funds and the inadequacy of each of them both individually and in amount for sufficient financial support. Such model is likely inadequate to the development of Russian practice of financial relations formation in the provision of health services to the population. In this situation, creation of a model of financial relations that would become adequate to the needs of the population and would consider the characteristics and nature of the various medical organizations in the regions, becomes a challenge. This paper, by using regional budget expenditures data, examines the practice of forming both the health care budget, and its expenditure structure in terms of implementing the program-oriented budget allocation principle as one of the important aspects of modernization.