Healthcare reform

n 2007, the government introduced an extensive programme for the rapid privatization of public services, including in the healthcare sector. The government’s two new initiatives – a hospital privatization plan and increasing the role of private insurance companies – were some of the most radical steps ever taken in the history of Georgian healthcare reform.

Furthermore, the introduction of Public-Private Partnership (PPP) schemes in the healthcare sector resulted in improved access to healthcare services and in the construction or full rehabilitation of healthcare facilities equipped with modern equipment.

More specifically:

The government privatized healthcare facilities and hospitals that were largely mismanaged, overstaffed, constantly requesting additional public funds and providing inadequate services

The private sector put 150 new hospitals in operation in 18 months

Healthcare staff was reduced, but those who stayed were paid higher, performance-related salaries and benefited from improved working conditions

The quality of healthcare in newly-built or rehabilitated facilities improved substantially

The number of insured persons increased from around 40,000 in 2004 to 2.2 million in 2012–despite the fact that only private insurance companies operate in Georgia and that health insurance is not mandatory

Total budget expenditure on healthcare increased from 8,5% of GDP in 2004 to 10,5% of GDP in 2012 (whereas Georgia’s GDP in this period increased by almost 90%)