Social Consequences of Privatization of Healthcare in Georgia

Since the beginning of the 90s, healthcare reform began in Georgia. The goal of the reform was to move from the Soviet centralized planning model of healthcare to a „modern“ neoliberal system.

Cost optimization and improvements in infrastructure and healthcare quality were supposed to occur through privatization, transition to market principles, competition, and bed reduction. The state was supposed to retain the function of defining policy and regulating the entire health sector. 

The expectations of international financial organizations and foreign advisers or reformers that the short-term stagnation accompanying shock therapy would be followed by rapid and continuous growth have not been fulfilled. Healthcare also faced collapse. The disruption of trade relations between the former Soviet republics led to a significant reduction in the provision of basic medical supplies. In addition, infrastructure and technical equipment deteriorated.

Beka Natsvlishvili
Nodar Kapanadze
Sopo Japaridze

Friedrich-Ebert-Stiftung, Tbilisi 2022

Friedrich-Ebert-Stiftung South Caucasus Office

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