The new system of financing clinics, introduced in many countries around the world, now successfully works in Georgia as well, said the head of the Ministry of Health Zurab Azarashvili during his speech in the parliament in the format of "minister's hour".

To improve medical services, starting from November 1, 2022, the Georgian Ministry of Health introduced a new system of financing clinics, according to which the basic rate for treatment is calculated. This is the international DRG (Diagnostic Related Group) system.

"A year ago, I said that the program only worked in a few selected clinics in pilot mode. This year, we can safely say that the DRG funding model has already been successfully implemented and works in Georgia," Azarashvili said.

The minister pointed out that starting November 1, 2022, the standardized prices for medical services that are identical in all health care facilities of the country have been defined.

According to Azarashvili, along with the growth of universal health care program budget, the Ministry of Healthcare focused on reasonable disposition of the funds so as not to affect the population's access to health care services and not to hamper health care facilities in their development. Accordingly, it was decided to fundamentally change the cost of medical services, said the Minister.

For citizens of retirement age the co-financing rate is 10% but no more than GEL 500 (about $200).

For children from 0 to 5 years old, as well as for children with disabilities, with sharply expressed disabilities and students the cost of co-financing in clinics is 20%, but not more than 1 thousand GEL (about $400).

The rest of the citizens, who don't fall into these groups, will have to pay for inpatient treatment 30%, not more than 1.5 thousand GEL (about $600).

At the last meeting of the Georgian government there was considered an amendment to the decree "On carrying out some measures for transition to universal health care" dated February 2013. According to the amendments, the upper limit of co-financing for medical care in clinics is determined.

This decision was made taking into account the interests of citizens and increasing access to quality health care, the Ministry of Health of the country noted.

What is DRG?

DRG stands for Diagnostically Related Group. DRG refers to a pricing system for inpatient medical services, expressed as a specific, fixed amount for a single case of treatment.

If before in Georgia clinics offered different prices, for example, for appendicitis surgery, with the introduction of the new system all hospitals have one price. The Ministry of Health intends to strictly control the process of implementation of the new system, and clinics will have no financial motivation to demand additional amounts from patients.