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Review of the Health Financing and Provider Payment System in Armenia

Ministry of Health
Field of Expertise:
Health Economics and FinancingPublic Financing Management (PFM); Costing studies; Health expenditure Review/ National Health Accounts (NHA)/ Health Financing Studies
Narrative description of project:
The Government of Armenia embarked on a Health Systems Optimization Project which had a main objective of establishing more accessible, efficient and sustainable health care services to the population, especially the most vulnerable groups. The components of the project included the scaling up of the implementation of the primary health care strategy, the optimization (or rationalization) of the hospital sector and the improvement of its governance, and the improvement of the prevention and management of public health threats. The review of the health sector financing and provider payment systems is one component of the project preparation. The main objective was to help the Ministry of Health developing a medium term strategy to strengthen the health financing system (for achieving financial sustainability and more equitable access to essential health services).
Description of services provided:
The review concentrated on the following components:
  • Review of the current allocation and utilization of funds in terms of cost-effectiveness, consistency, affordability and ability to provide vulnerable groups with access to essential clinical services;

  • Review of the current system of provider payment mechanisms in view of identifying system strengths and weaknesses and recommending short and medium term measures to strengthen the system;

  • Assess the State Health Agency procedures (financer and contractor of health providers) and staff capacity;

  • Advise on the Health Finance Regulatory Environment;

  • Assessment of the Governance Structure of the State Health Agency;

  • Assess the provider capacity to manage and implement contracts;

  • Recommendations for Medium Term Health Finance Development Strategy.