INTRODUCTION
Background to the Study
The Russian Federation with seventeen million kilometer square of surface area is the world largest country. The country has a major deposit of oil, timber, coal, natural gas, and a variety of mineral like any other country; designing of healthcare systems is based on the needs of healthcare in Russia. Countries for providing good healthcare to their people invest huge amounts in designing significant policies. Around the world, a wide variety of healthcare systems exists; countries attempt to improve the health of their people because it also affects the economic growth as well. Development of good healthcare system is a challenge for nations. The history of Russia intricately affects the attitudes, health, and lives of its people. According to research conducted by Pew Research Centre, approximately half of 85 percent respondents of the research believe that healthcare is a problem in their countries (Collins, 2014). The world health organisation (WHO) carried out analysis regarding the healthcare systems of the world by utilising five indicators of performance with the aim of measuring health systems. The analysis of the world health organisation (WHO) put Russia at a lower rank and found the country as the least fair in healthcare systems’ financing. The reason for lower ranking for Russia is associated with the impact of 1990s economic crisis. This crisis reduced the spending of government on the healthcare system of the country (World Health Organization, 2000). The quality of Russian healthcare system declined due to the decreased standard of living in the country. The life expectancy with regard to men decreased from 64 to 57, and alcohol related deaths throughout the 1990s increased. Moreover, parasitic diseases and infectious diseases are enhanced by 100 percent (UCSF, 2012). However, over the last twenty years, the country has changed the way its finance its healthcare system. The health system of the country before the collapse of the USSR was supported by the budget of the country, but in 1991, first time the concept of health insurance was introduced. The parliament of the country adapted on the medical insurance adapted new laws (Ward, 2015).
After the establishment of eighty-nine regional funds and one federal fund for the insurance of general medical, that was financed by the contribution of employers the country rest of the 1990s to 2000s worked on segregating services for financing the services of public medical. Currently, the country is financing its ambulance services through insurance of general medical. However, the government of the country supports the hi-tech ones (such as obstetrics and oncology) and specialised services of medical (such as dermal surgery, dental, and addiction) services through regional and federal budget (Ward, 2015).
Changes in the system of Russian healthcare have led the country towards mixed results for personnel of medical and lethal outcomes for patients. The authorities of the country wanted to modernise and optimise the health system through making the medical care more accessible and boosting its medical care quality. However, in the result of change, medical care became inaccessible for the population’s large part more specifically in rural areas (Epple, Grozovsky & Aptekar, 2015; US Library of Congress, n.d). Since the birth of Federation of Russia and end of Soviet Union, the health status of the population of the country declined dramatically. The rate of heart disease, cancer, tuberculosis is highest that any industrialised country; the rate of dying due to cancer is approximately 60 percent (Allianz, n.d; Nelson, 2014; Petrukhin & Lunina, 2011).
These devastating healthcare results are the indications of immense considerable imbalance of Russian healthcare system (Thompson, 2007). There are several reasons that cause an imbalance in health system from which one is poor transportation that limits the access of the population to the health services (Plavunov et al., 2014; Shishkin & Vlassov, 2009). However, in 2008, the country introduced some reforms that were active in 2013 as well. These legislations proved as corrective measures in the health system of the country. State policy for bettering the health system situation introduced some reforms that encouraged foreign pharmaceutical manufacturers for enterprise production in the country. It was perceived that the policy of compulsory insurance would have a positive impact on health system (Ernst & Young, 2014). Despite some of the negative consequences, the mandatory funding system has some benefits as well such as the system helped in maintaining the level of spending. Second, the system separated the provider and purchaser. The focus of compulsory funding system has been on cost effectiveness (Docteur & Oxley, 2003). It is perceived that increase competition enhances the quality of care, lower the cost, and improve the access (Stanford Medicine, 2014). Through health system reforms, the country can better the modern health system situation of the country (The World Bank, 2007). as the country through its high-tech reforms improved the volume of medical care by 32 percent in seven months as compared to the similar period of 2012 (Fisun et al., 2014). Therefore, it has become essential that the factors that can better the system of Russia are examined and further opportunities for Russia health systems are determined that the company can gain through bringing the internationalisation in the local health system market.
Statement of Research Problem and Motivation of the Study
Several studies have been conducted with the aim of exploring negative effects of changes in healthcare system on healthcare of Russian people (Popovic et al., 2011; Maynes, 2014; Chelala, 2015), but very little work has been conducted in finding out the prospects of Russian healthcare in the global international healthcare market. The gap in the existing research proved as a motivating factor for conducting the study. The dropping rates of healthcare and introduction of new reforms inspired to work on the Russian health system and determine that why the country despite having so many changes had to face healthcare issues.
Main research question, sub-Research Questions, Objectives
The aim of the research is to determine the current healthcare system of the country and competitive factors that can help the healthcare system of the country in entering global market of the health system and function professionally and efficiently. However, for better answering the research’s major questions, it is essential that the research is divided into sub questions through answering them the answer to core the key question can be given in an effective way. For the attainment of the research purpose, the study is going to attempt the following questions:
Main research question
Q: What are the prospects of Russian healthcare in the global international healthcare market?
Sub-Research Questions
Q1: What is the current situation of the health system of the country?
Factors affecting health system in Russia
What were the causes of imbalance in Russian health system?
Q2: What changes are being made in the Russian healthcare system?
What important changes occurred in the healthcare system after negative consequences of prior changes?
What are the recent developments in the health system of the country?
Q3: How the system can enter in the international health system?
What will be the impact of new reforms on health system
How the system can gain competitive advantage through its recent reforms in the global health market.
Objectives: For answering these questions, the objective is to use qualitative research technique and gather data from secondary sources such as books, articles, and websites. Through qualitative research, it is easy to gain the wider data and make a logical conclusion.
Significance and Purpose of the Study
The major purpose of the paper is to disclose the current situation of the health system, of the country that also sheds light on the factors that resulted in the current situation of the health system. The aim of the paper is to examine the current health system of Russia through finding out the factors that cause of the current situation and determine the prospects of Russian healthcare system in the international market. The paper aims to examine the competitive factors that can help the country’s health system in entering in the global market of the health system and operate efficiently. In other words, the aim of the paper is to determine the opportunities of Russian health system in the global international market.
The research has immense significance for policymakers and pharmaceutical personnel, as it offers a comprehensive view of the overall current situation of the country’s health system. The paper is helpful for the students in realising the factors that are contributing in unbalancing the existing situation of the health system and can help the government in making the health system of the company better.
Scope of the Research
The scope of the study is to determine the current healthcare system of the country and growing internationalisation in the health system of the country. The efforts are beneficial for the managers who are fighting for retaining skilled staff and for improving the existing delivery of healthcare services in the international healthcare market. The paper is also beneficial for potential policy makers as they can have a detailed view on the dynamics of Russian health system
For the attainment of the objective of the study, the paper has been separated into five different sections or chapters.
Chapter One – Introduction: The first chapter of the paper will present the brief background of the study for letting the reader get an idea of the issue going to be explored.
Chapter Two – Literature Review: The second chapter of the study will be based on existing literature and researched that have been conducted by other researchers.
Chapter Three – Research Methodology: The third chapter will present and explain the research methodology undertaken by the researcher for exploring the research questions.
Chapter Four – Findings and Analysis: The fourth chapter will be based on the data and findings that help to make an informed conclusion.
Chapter Five – Conclusion and Recommendations: The last chapter of the paper will be based on the conclusion that summarised key findings and presents recommendations for further findings.
List of References
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