PHC Reform: NHSU makes second payments to contracted health facilities

The revenues of PHC provides contracted by the National Health Service of Ukraine (NHSU) grow every month with the increase in the number of patient declarations. For example, the second payment under the capitation model made to the Rivne Regional Primary Healthcare Center in August was 10% higher than the first payment made in July.

Today (August 15, 2018), the NHSU has paid a total of UAH 253.8 million to 154 state-owned and private PHC providers contracted in June.

At the meantime, 31 health facility has received partial payments, because their current licenses are to expire by the end of this month. The NHSU will resume payments, once they renew the licenses. The license of one PHC center has expired prior to August 15, which is why the NHSU will pay this facility for the services provided in August, as soon as the license is renewed.

The NHSU has also requested six PHC providers to clarify some ambiguities in the reports submitted. On August 16, the NHSU is expected to pay a total of UAH 10.9 million to these health facilities.

Every month, the NHSU uses the eHealth data to pay the contracted PHC providers an age-adjusted capitation per declaration. The base rate is currently set at UAH 370.00 per patient a year. In 2018, the NHSU also pays an additional UAH 240.00 per patient who has not signed a declaration with the chosen doctor yet, but is registered within the health facility’s service area. In August, the contracted PHC providers received payments from NHSU for almost 3.5 million signed declarations and 4.9 million patients registered within these facilities’ service areas.

"The new healthcare financing system motivates physicians and health facility leaders to provide better care to patients and to improve the quality of services. Considering that money follows the patient, the health facilities with high numbers of satisfied patients achieve high revenues, and physicians-in-chief or health facility managers use these resources to motivate staff and develop the facility," noted Oleh Petrenko, head of the National Health Service of Ukraine.

Since July 1, the NHSU has paid a total of UAH 500 million to all contracted PHC providers.

Salaries of most physicians and medical staff working at the contracted health facilities have increased since switching to the new financing model. The ‘autonomized’ non-profit enterprises that have already signed agreements with the NHSU now have administrative and financial independence and can apply a flexible approach to salary formation. The entire team of each particular health facility takes a decision on salary policies.