Search for Optimal Remuneration Model for Healthcare Facilities – LA offers the best

In connection with reform of the health care system of Ukraine financing and the autonomy of healthcare facilities, more and more medical facilities need or will need in the future to update the model for organizing remuneration. Legal Alliance Company already has the expertise in this matter and can fully provide competent legal assistance.

Recently, for one of their clients, lawyers conducted a study on successful foreign experience and the requirements of the current legislation of Ukraine in the scope of remuneration of medical workers. They also analyzed the shortcomings of the current client remuneration system. As a result, legal company issued an opinion, that proposed several main models for organizing the remuneration of medical workers on the basis of the quantity criteria, quality of the medical services provided and the contribution of each employee to the work of the medical institution.

In order to implement the new remuneration system, a "hybrid" model was selected that combines the best properties of existing systems, taking into account the requirements of Ukrainian legislation. With its help, the hospital as an employer independently sets the criteria and their correlation to ensure an appropriate and fair level of remuneration, and financial incentives for their own employees.

When working on this project, the team of Legal Alliance Company was guided by positive foreign experience. For example, in the countries of Central Europe, state doctors receive a fee on a contractual basis (fixed salary) with the possibility of increasing it through bonuses and incentives that are paid for performance, experience and scientific achievements, work with certain categories of patients, the quality of services provided, medical services and other criteria. The remuneraton model developed for the client is based on a similar approach.

“Within the practice of labour law, Legal Alliance provides a range of services to clients in various industries that are consistent with global trends in employment and occupation. In the case of the practical implementation of the new payment model, this will become a unique precedent for the introduction of a foreign remuneration system for secondary healthcare institutions in Ukraine. We look forward to this model and are ready to share our best practices with other market participants,” noted Illya Kostin, partner, attorney-at-law at Legal Alliance Company.

For all questions regarding this topic, please contact:

Ilya Kostin, attorney-at-law, partner at Legal Alliance Company, kostin@l-a.com.ua;

Yaroslav Furyaka, associate at Legal Alliance Company, furiaka@l-a.com.ua.