ECONOMIC JUSTIFICATION OF CORRUPTION RISKS IN THE FIELD OF HEALTHCARE

##plugins.themes.bootstrap3.article.main##

##plugins.themes.bootstrap3.article.sidebar##

Published: May 23, 2023

  Mykhailo Anishchenko

  Viktor Oharenko

Abstract

The purpose of the article is to identify the most common corruption offenses in the healthcare sector and their impact on the country's economy, and also to outline the main directions of the state anti-corruption policy in this area. Methodology. The research is based on the study of international treaties ratified by Ukraine, as well as domestic legal acts regulating the activities of the medical sector in the area of combating and preventing corruption. Results. The article analyzes the main directions of anti-corruption policy in the national healthcare system and determines their impact on the economy of the country. It is noted that corruption in this area is inherent in all socio-economic systems of the world, however, it is most widespread in the process of transformation of the economic and social environment. Corruption can manifest itself in various mechanisms. The author analyzes the monitoring of corruption risks in the field of security by Transparency International, which annually determines the Corruption Perceptions Index (CPI), and the European Commission. It is theoretically proven that a decrease in the score of the Corruption Perceptions Index leads to an outflow of capital from the country (one point corresponds to 0.5% of the country's gross domestic product). Using the examples of the United States of America, the Federal Republic of Germany, and Denmark, the paper examines the most common forms of corruption in the healthcare sector, as well as the positive experiences that should be implemented in order to improve the level of economic development of the country. The main corruption risks in the healthcare sector were analyzed. The role of the NAPC and the NABU in combating and preventing corruption in the healthcare sector is revealed. Practical implications. The article outlines the main steps that need to be taken to introduce changes in the direction of anti-corruption activities in private healthcare institutions. The role of the electronic system of public procurement of goods, works and services "ProZorro" in combating and preventing corruption in the healthcare sector is determined. The analytical data of the Independent Anti-Corruption Commission are studied. Value/originality. It is theoretically substantiated that the key task of the state anti-corruption policy in the healthcare sector is to develop and implement mechanisms for detection, prevention and elimination of conditions that facilitate the emergence and spread of corruption, the impact of which on the country's economy is quite dangerous, as it significantly impairs the effectiveness of the state's economic policy. The article highlights the consequences of corruption in the healthcare sector for the country's economy: expansion of the shadow economy; violation of competitive mechanisms; inefficient use of budget funds in the distribution of public contracts and benefits; price increases due to "corruption costs"; and deterioration of the investment climate. The article outlines the main areas of anti-corruption policy in the healthcare sector, including: an effective system of control and transparency; analysis of the causes of corruption; a high level of legal awareness and culture of citizens; involvement of specialists and scientists in the areas of activity in the preparation of relevant regulatory documents; improvement of the electronic healthcare system and, consequently, further automation of workplaces; change of the financing system; improvement of the anti-corruption policy in the healthcare sector as a component of the overall anti-corruption policy; implementation of positive international experiences.

How to Cite

Anishchenko, M., & Oharenko, V. (2023). ECONOMIC JUSTIFICATION OF CORRUPTION RISKS IN THE FIELD OF HEALTHCARE. Baltic Journal of Economic Studies, 9(2), 40-47. https://doi.org/10.30525/2256-0742/2023-9-2-40-47
Article views: 457 | PDF Downloads: 259

##plugins.themes.bootstrap3.article.details##

Keywords

economy, healthcare, corruption risks, anti-corruption, economic instruments

References

90% of the abuses exposed by NABU in the social sphere relate to healthcare. Available at: https://nabu.gov.ua/novyny/90-zlovzhyvan-vykrytyh-nabu-u-socialniy-sferi-stosuyutsya-ohorony-zdorovya

Ukraine remains most corrupt country in Europe – Transparency International, Interfax-Ukraine (3 December 2014). Available at: https://uk.wikipedia.org/wiki/

Policy brief on corruption in public procurement of medicines in 2019-2020. Available at: http://nikorupciji.org/2013/06/20/analitychna-zapyska-z-pryvodu-faktiv-koruptsiji-pry-zdijsnenni-derzhavnyh-zakupivel-likarskyh-zasobiv-v-2019-2020-rr

Anishchenko, M. A. (2019). Organization of Anti-Corruption Activities in Healthcare Institutions: Problems of Institutionalization. State and regions. Series: "Public Administration", vol. 3(67), p. 17.

Bilyk, O. I., & Novikova, O. V. (2016). Justification of ways to overcome corruption in the healthcare sector. Public Administration: Improvement and Development, vol. 10. Available at: http://www.dy.nayka.com.ua/?op=1&z=1008

Blank, M. E., & Batrakova, T. I. (2016). The impact of corruption on the economy. Scientific Bulletin of Uzhhorod National University. Series: "International Economic Relations and the World Economy", vol. 7, pp. 25–28.

Demchenko, I. S. (2019). Corruption and public health: points of contact and legal regulation. Reforming the healthcare system: corruption risks and ways to eliminate them: roundtable materials (Kharkiv, December 5, 2019). Kharkiv: Pravo, p. 21.

Public procurement. Ministry of Health of Ukraine. Official website. Available at: https://moz.gov.ua/

Corruption Perceptions Index-2021. Available at: https://cpi.ti-ukraine.org.

Classification of Economic Activities DK 009:2010: Order of the State Committee for Technical Regulation and Consumer Policy of 11.10.2010 No. 457. Available at: https://zakon.rada.gov.ua/rada/show/vb457609-10#Text

Corruption in the medical sector: eradicate, prevent, and defeat. 2018. № 3 (1124). Available at: https://www.apteka.ua/article/442446

Krupytska, T. (2008). The price of the issue is our money. Reduktsion, vol. 7 (29), pp. 22–23, 26–27.

Lehka, O. V. (2020). The main determinants of corruption offenses in Ukraine. Law and Society, vol. 3, pp. 44–49.

International Experience in Combating Corruption in the Security Sector: Implications for Ukraine. Analytical note. Publication 01.07.2015. National Institute for Strategic Studies. Available at: https://niss.gov.ua/doslidzhennya/nacionalna-bezpeka/mizhnarodniy-dosvid-borotbi-z-korupcieyu-v-sektori-bezpeki

Nasirov, R. Innovative IT technologies will help to overcome corruption at customs. Published on 13.05.2016. Available at: https://www.kmu.gov.ua/news/249026083

Nesterenko, S. Corruption in medicine: how it is fought in the United States. Available at: http://sergiynesterenko.com/?p=321

Pashkov, V. Legal economic order in ensuring anti-corruption activities in the healthcare sector. Available at: https://www.apteka.ua/article/39950

Predborskyi, V. A. (2009). Shadow economy as a form of uncertainty economy. Formation of market relations in Ukraine, vol. 4 (95), pp. 44–49.

The Law of Ukraine "On the Principles of State Anti-Corruption Policy for 2021-2025" of 20.06.2022, No. 2322-IX. Official Bulletin of Ukraine. Of 22.07.2022, No. 56, p. 66, Article 3272, act code 112455/2022.

The Law of Ukraine "On Public Procurement" of December 15, 2015, No. 922-VIII. Bulletin of the Verkhovna Rada of Ukraine. 2016. № 9. Art. 89. Version of 01.01.2023.

On Approval of the Concept of Healthcare Financing Reform: Order of the Cabinet of Ministers of Ukraine of 30.11.2016 No. 1013-p. Available at: https://zakon.rada.gov.ua/laws/show/1013-2016-%D1%80#Text

Rohatiuk, I. V. Corruption: will the state be able to move forward with its eradication? Available at: https://www.naiau.kiev.ua/pravova-prosvita/osnovi-antikorupcijnogo-zakonodavstva-ukrayini/naukovi-statti-ta-tezi-z-antikorupcijnoyi-tematiki/materiali-iv-mizhnarodnoyi-naukovo-praktichnoyi-konferenciyi.pdf

Slavitych, M. V., & Hupalo, O. V. (2014). Comparative analysis of healthcare models. Bulletin of the Odesa I.I. Mechnikov National University. Т. 19. Iss. 2/5. P. 70–73.

Smetanina, N. N. (2017). The cost of corruption crimes. Criminal law and criminological principles of combating corruption: Collection of abstracts of the V International Scientific and Practical Conference (Kharkiv, March 31, 2017.). Kharkiv: Kharkiv National University of Internal Affairs. Р. 175–176.

Sociological group "Rating". Assessment of the healthcare sector in Ukraine (March 24-28, 2021). Available at: https://ratinggroup.ua/research/ukraine/ocenka_medicinskoy_sfery_v_ukraine_24-28_marta_2021.html

The WTO Agreement on Government Procurement of April 15, 1994. WTO: Agreement, International Document. Available at: http://zakon2.rada.gov.ua/laws/show/981_050

Who is better at fighting corruption? The leading countries. Available at: https://www.slovoidilo.ua.polityka