A Comparative Look at Healthcare Sector in Armenia and Azerbaijan
10:30 - June 13, 2025

A Comparative Look at Healthcare Sector in Armenia and Azerbaijan

TEHRAN (ANA)- Both Armenia and Azerbaijan, post-Soviet countries in the South Caucasus, have been undergoing significant reforms in their healthcare systems since their independence, a short report by Chat GPT says, adding, while both nations share similar historical backgrounds and challenges, their approaches to healthcare, resource allocation, and outcomes present notable differences.
News ID : 9141

The report points to some standards based on which a nation’s healthcare can be evaluated. 

Healthcare System: Armenia has transitioned to a social health insurance model, aiming to provide universal health coverage. The government plays a significant role in financing and regulating healthcare services.

Infrastructure and Access: Armenia’s healthcare infrastructure has improved over the years, with investments in upgrading hospitals and primary care facilities. Access to healthcare has expanded, especially for vulnerable populations.

Health Indicators: Armenia has made progress in improving health indicators, such as life expectancy, infant mortality rates, and maternal mortality rates. However, challenges remain in addressing non-communicable diseases and ensuring equitable access to quality healthcare.

Challenges: Armenia faces challenges related to limited resources, brain drain of healthcare professionals, and the impact of the Nagorno-Karabakh conflict on healthcare services and infrastructure.

Azerbaijan:

Healthcare System: Azerbaijan has also been reforming its healthcare system, with a focus on modernizing infrastructure and improving the quality of services. The government has invested heavily in healthcare, using revenues from oil and gas exports.

Infrastructure and Access: Azerbaijan has built modern hospitals and diagnostic centers, particularly in Baku and other major cities. Access to healthcare has improved, but disparities persist between urban and rural areas.

Health Indicators: Azerbaijan has seen improvements in health indicators, including a decline in infant and maternal mortality rates. However, challenges remain in addressing infectious diseases, improving primary care, and promoting healthy lifestyles.

Challenges: Azerbaijan faces challenges related to corruption in the healthcare sector, over-reliance on oil revenues for healthcare financing, and the need to strengthen primary care and preventive services.

Key Differences and Challenges:

Healthcare Financing: Azerbaijan has benefited from oil revenues, allowing for greater investment in healthcare infrastructure. Armenia has relied more on external assistance and budget allocations.

Infrastructure Development: Azerbaijan has built more modern hospitals and diagnostic centers, particularly in urban areas. Armenia has focused on upgrading existing facilities and improving primary care.

Policy and Governance: Both countries face challenges in healthcare governance, including corruption, inefficiency, and the need for better regulation of the private sector.

Conflict and Security: The Nagorno-Karabakh conflict has had a significant impact on healthcare in both countries, especially in border regions.

In summary, both Armenia and Azerbaijan have made progress in reforming their healthcare systems, but face distinct challenges. Azerbaijan has benefited from greater financial resources, while Armenia has focused on strengthening primary care and expanding access to vulnerable populations. However, both countries need to address governance issues, improve the quality of services, and promote health equity.

Armenia: Social Health Insurance Model

Overview: Armenia has adopted a social health insurance (SHI) model, aiming for universal health coverage. This model involves pooling funds from various sources to finance healthcare services for the entire population.

Funding Sources:

Government Budget: The primary source of funding is the state budget, which allocates funds to the Ministry of Health.

Mandatory Contributions: Employees and employers contribute to a health insurance fund, which is managed by the government.

External Assistance: Armenia also receives financial support from international organizations and donor countries to supplement its healthcare budget.

Coverage: The SHI system provides coverage for a range of essential healthcare services, including primary care, hospital care, and some specialized treatments. Certain population groups, such as the poor, elderly, and disabled, receive subsidized or free healthcare services.

Challenges:

Sustainability: Ensuring the long-term financial sustainability of the SHI system is a major challenge, given Armenia’s limited economic resources and high rates of informal employment.

Enforcement: Collecting mandatory contributions from employers and employees can be difficult, particularly in the informal sector.

Quality of Services: Ensuring the quality of healthcare services provided under the SHI system is an ongoing challenge, requiring investments in infrastructure, training, and quality assurance mechanisms.

Azerbaijan: State-Funded System

Overview: Azerbaijan’s healthcare system is primarily funded by the state budget, with revenues from oil and gas exports playing a significant role. The government directly finances healthcare services and infrastructure.

Funding Sources:

State Budget: The main source of funding is the state budget, which allocates funds to the Ministry of Health and other healthcare providers.

Oil Revenues: A significant portion of healthcare funding comes from revenues generated by the country’s oil and gas industry.

Private Sources: Private healthcare providers also play a role in the healthcare system, but their contribution to overall financing is relatively small.

Coverage: The state-funded system provides coverage for a range of healthcare services, including primary care, hospital care, and specialized treatments. However, access to certain services may be limited, particularly in rural areas.

Challenges:

Dependency on Oil Revenues: Azerbaijan’s healthcare system is heavily reliant on oil revenues, making it vulnerable to fluctuations in global oil prices.

Corruption and Inefficiency: Corruption and inefficiency in the healthcare sector are major challenges, leading to the misuse of funds and poor quality of services.

Inequitable Distribution: Healthcare resources are not always distributed equitably, with a concentration of modern facilities in Baku and other major cities, while rural areas lag behind.

Comparative Analysis:

Funding Stability: Armenia’s SHI model aims for greater financial stability by diversifying funding sources and involving both employers and employees in healthcare financing. Azerbaijan’s reliance on oil revenues makes its healthcare system vulnerable to economic shocks.

Resource Allocation: Armenia’s SHI model may lead to more efficient allocation of resources by aligning funding with healthcare needs and outcomes. Azerbaijan’s state-funded system may be more susceptible to political influence and misallocation of resources.

Equity: Both countries face challenges in ensuring equitable access to healthcare services. Armenia’s SHI model includes provisions for subsidized care for vulnerable groups, while Azerbaijan’s state-funded system aims to provide universal coverage.

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