INCLUSIVE DEVELOPMENT OF THE HEALTHCARE SECTOR: INSTITUTIONAL AND FINANCIAL PROVISION
DOI:
https://doi.org/10.17721/1728-2667.2026/229-2/12Keywords:
inclusive development, institutions, healthcare financing, government effectiveness, rule of law, institutional environmentAbstract
Background. Global bifurcations have necessitated a review of Ukraine's healthcare policy. Inclusive development is emerging as a strategic pathway towards achieving social justice and universal access to medical services. Since an increase in funding does not automatically guarantee improved efficiency, an analysis of the institutional environment is of critical importance. The purpose of this study is to evaluate the impact of institutional determinants on healthcare financial provision and to substantiate directions for inclusive and innovative development amidst war and post–war recovery.
Methods. Grounded in the principles of new institutional economics, this study treats the institutional environment as a key component of budgetary expenditure efficiency. To test the hypothesis regarding the influence of institutional determinants on healthcare spending, econometric modelling using regression analysis was applied. The analysis incorporates variables reflecting macroeconomic growth, government effectiveness, and the rule of law.
Results. The modelling results revealed a high explanatory power for the selected variables. A statistically significant positive relationship was established between government effectiveness and healthcare expenditure, confirming the role of administrative efficiency in the strategic reallocation of resources. Conversely, a statistically significant negative relationship between the rule of law and the volume of expenditure suggests that the strengthening of legal institutions fosters accountability and institutional optimisation. This indicates that improving the legal framework helps curb budgetary inefficiency and corruption rent by enhancing transparency within the medical sector.
Conclusions. Institutional transformation is as vital for the financial stability of the healthcare sector as direct economic investment. Future reforms must focus on digital inclusion, the development of mental health support systems, and the implementation of barrier–free standards to improve the overall quality of life. Strengthening the rule of law is essential for eliminating institutional dysfunctions and redirecting informal financial flows. Achieving a balance between management capacity and legal accountability is key to the long–term resilience of the national healthcare system.
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