Ukraine provides access to healthcare for all its citizens, on a free-at-the-point-of-use basis, but some informal out-of-pocket payments are regularly employed. The healthcare system is dominated by its public contingent, with the private sector mostly comprising smaller and more specialized clinics. Ukraine’s health expenditure is relatively low on a per capita basis, due in part to its large population. Spending as a percentage of GDP has grown slightly in 2024, but from a low base in 2023. Expenditure is almost 50% private, with most of this expenditure coming from out-of-pocket payments. 

Healthcare infrastructure and personnel dropped significantly in 2014 with the annexation of Crimea, and another drop occurred in recent years due to continuing damage to infrastructure and the migration of millions of people because of the conflict. Over 2,200 attacks on healthcare facilities have been recorded in Ukraine, and over 1,800 medical facilities have been damaged or destroyed since the start of the full-scale war. Many medical facilities have been restored or are in the process of restoration. However, given a pre-war need to reconstruct and re-equip up to 80% of medical facilities in Ukraine, the potential investment needs of healthcare infrastructure amount to billions of dollars in the coming years. 

Ukraine’s digital health infrastructure itself is relatively underdeveloped. Digital technology currently employed is mostly limited to the implementation of electronic health records (EHRs), which began in 2018 and continues to be more widely used as general digital infrastructure improves. 
A declining birth rate and continued emigration of millions of people contribute to a continually shrinking population. The population is aging steadily. Cardiovascular disease is the largest cause of death by a significant margin, according to records, claiming almost 70% of deaths annually. Male life expectancy is significantly lower than female life expectancy.

Key Healthcare Indicators 

• Health expenditure: $9.8 billion, 5.3% of GDP (2024).
• Hospitals/hospital beds: 1700 / 320,000
• Ukraine is the tenth largest healthcare market in Central and Eastern Europe; however, annual per capita health expenditure is around $260 – the lowest in the region, with the potential to grow

On January 17, 2025, Ukraine’s Cabinet of Ministers adopted the Healthcare System Development Strategy and an operational plan for 2025-2027. The strategy’s main goals are to ensure universal access to quality medical services, strengthen intersectoral coordination, and foster the development of the national healthcare system.  It also includes establishing a central executive body to oversee quality control and promote innovative medical goods.

Ukraine’s healthcare budget for 2025 is set at $5.2 billion, a 2% increase from 2024. The funds are distributed across key areas: 

•  $4.2 billion for the program of medical guarantees, including hospital funding and medical service reimbursements 
• $300 million for centralized medicine procurement: medicines and medical devices
• $100 million for emergencies
   

Another $300 million will come from public investment projects and $100 million will be funded by international financial organizations and donors. The funds will be directed to purchase high-value medical equipment, creating the centers of nuclear medicine and developing rehabilitation centers. The increased funding aims to improve accessibility, expand government drug reimbursement programs, and modernize healthcare infrastructure, particularly in war-affected regions.

Ukraine’s pharmaceutical market is demonstrating steady growth despite the ongoing war and economic difficulties. In 2024, the market reached $4.3 billion, growing by 6%. However, the volume of medicines sold increased by only 1%, indicating that price growth rather than increased consumption drove the market expansion. The government’s role is growing, with public healthcare spending set to rise by in 2025 to $5.2 billion. The market remains highly privatized, with 87% of medicine purchases paid out-of-pocket by consumers, making pricing a critical issue. 
The market faces challenges from inflation (12% in 2024), population decline (now at 29.5 million), and war-related logistics issues. Despite this, local manufacturers were expanding in 2024, and several major distributors dominated supply chains.

New policies introduced in early 2025 aim to reduce medicine prices by around 30% through measures such as the launch of a National Price Catalog with mandatory price declarations and limits on wholesale and retail mark-ups. Alignment with EU pharmaceutical standards is progressing to attract investment, while new restrictions on advertising medicine packaging have been enacted. Parallel imports from EU countries are now permitted to boost market competition. Despite increased government regulation, the pharmaceutical market in Ukraine is projected to grow by 12-16% in 2025, though businesses must adapt to evolving regulatory and economic conditions.

The Ukrainian market of medical devices and medical equipment amounts to over $800 million. Ukraine remains highly dependent on imported medical devices, particularly high-tech equipment such as MRI and CT scanners, surgical instruments, diagnostic imaging systems, and ventilators. The main suppliers of innovative medical devices to Ukraine are the EU (Germany, Italy, the Netherlands, and Poland) and the United States.

Key Market Segments

• Consumables:  The consumables segment represents around 15% of the market and is forecast to grow by 6% CAGR in local currency terms to approximately $154 million by 2029. Demand for medical dressings, first aid kits, suturing materials, and surgical gloves remains high, fueled by conflict-related injuries and an emerging role of Ukraine as a potential medical tourism hub, especially in orthopedics. 
• Diagnostic Imaging:  This segment holds a significant share (~28.5% in 2024) and is expected to grow reaching $305 million by 2029.  Growth drivers include rebuilding damaged hospitals and replacing obsolete equipment. The market remains strongly import-dependent, with several Ukrainian manufacturers focusing on ultrasound, X-ray, and MRI equipment. 
• Dental Products: Dental products constitute about 8.3% of the market and are forecast to reach $87 million by 2029.  The market relies almost entirely on imports, with South Korea, Germany, and Switzerland as leading suppliers. Local manufacturing of dental products is limited. 
• Orthopedics and Prosthetics.  This fast-growing segment (7.9% share) is expected to expand to $101 million by 2029. Orthopedics benefits from increased demand due to trauma surgery needs related to the conflict and post-war reconstruction efforts. Imports dominate supply, with the US, China, and Germany as key exporters. 
• Patient Aids:  Making up about 11.5% of the market, patient aids are forecast to reach $126 million by 2029. Major suppliers include Mainland China, Germany, and Italy. Demand for therapeutic respiration apparatus has declined post-pandemic, but ageing demographics support steady growth in other portable and therapeutic aids. 
• Other Medical Devices. Accounting for the largest share (~29.3%), this diverse category is expected to reach $314 million by 2029.  Key products include hospital furniture, wheelchairs, sterilizers, and ophthalmic instruments, with Germany and China as major import sources. The sector has shown resilience despite the pandemic and ongoing conflict.

Market Dynamics and Trends 

• Customer preferences are shifting towards more advanced and innovative products, including devices for remote monitoring and telemedicine. 
• There is a growing adoption of digital health technologies. 
• The Government of Ukraine (GoU) is investing in modernizing healthcare infrastructure. 
   

The private sector plays a significant role, with private clinics and diagnostic centers increasingly investing in modern medical technologies to meet the rising demand for quality healthcare services. Opportunities for public-private partnerships and foreign investments are emerging, particularly in areas such as rehabilitation services, diagnostic imaging, and surgical technologies. Market surveillance for medical devices, which had been suspended before, have resumed, indicating a focus on ensuring compliance and safety within the market.

Medical devices and equipment products from the United States potentially attractive to Ukraine include: 

• Advanced diagnostic imaging systems (magnetic resonance imaging scanners, computed tomography scanners, advanced ultrasound scanners, diagnostic imaging systems including X-ray and mammography systems);
• Therapeutic and surgical devices, surgical instruments, robotic surgical systems (for cardiovascular, orthopedic, and urological surgeries), cardiovascular devices (e.g., drug-eluting stents, neurostimulators), prosthetics and orthotics;
• Monitoring and support devices (diabetes management devices, telemedicine and remote monitoring equipment, ventilators (mechanical respiratory support), mobility assistive Devices;
• High-end IVD modern systems; and
• Digital health technologies. 
   

Given Ukraine’s efforts to modernize healthcare infrastructure and align standards with the EU, U.S. medical products that meet high regulatory standards, offering high quality and durability, and support digital health integration are well-positioned for market entry.

Pharmaceuticals in need in Ukraine: 

• Innovative patented medicines for oncology, cardiology, rare diseases, and personalized medicine 
• Specialty drugs for chronic conditions, including advanced insulin and continuous glucose monitors 
• Vaccines and biologics supporting immunization and biologic therapy needs
• Advanced formulations and delivery systems are improving efficacy and adherence
•  Generic drugs and biosimilars offer cost-effective, quality alternatives
• Integrated digital-pharmaceutical solutions, such as medication adherence tools and personalized treatment platforms