Better Use of Money in Healthcare

Better planning of expenditures and improving services for citizens were the main topics of the first meeting between representatives of the Budget Sector at the Ministry of Finance, the Republic Health Insurance Fund, and the United Nations Development Programme (UNDP) in Serbia. The meeting marked the launch of the initiative “Introduction of Program Budgeting in Health Institutions and Improvement of Financial Planning”, implemented under the project “EU Support for Public Finance Management in Serbia.”

It was highlighted that the introduction of program budgeting will enable health institutions to manage resources more effectively, provide a clearer picture of how funds are spent, and ensure better monitoring of results. This approach is expected to increase transparency in the work of health institutions.

Participants discussed how budgets are currently prepared in hospitals, health centers, and other health institutions, identifying existing challenges and necessary improvements. They also reviewed what data health institutions already possess, what is lacking, and how information exchange can be better organized in the future.

The implementation of the initiative will take place in several stages. First, a standardized structure for budget preparation across all health institutions in Serbia will be introduced. Next, a dedicated IT solution for planning and tracking expenditures will be developed. New guidelines for program budgeting will be drafted, accompanied by training for healthcare staff to ensure smooth application in practice. Special emphasis will be placed on monitoring outcomes—not only how much money is spent, but also the impact on population health.

All participants agreed that this initiative represents an important step toward more efficient use of public funds in healthcare and the delivery of higher-quality services to citizens.

This meeting was organized as part of the project "EU for Public Finance Management in Serbia", funded by the European Union and implemented by UNDP, in partnership with the Center for Excellence in Finance (CEF) and the Ministry of Finance of Slovakia.