The Chamber of Accounts of the Republic of Azerbaijan has identified significant financial and management deficiencies within the national healthcare sector as part of its external state financial control measures conducted under the 2025 work plan.
According to the "State Audit" bulletin, as reported by the Operative Information Center-OMM, the audit uncovered inaccuracies in the income and expenditure reporting of the State Agency on Mandatory Health Insurance (ITSF). The investigation found that the failure to fully account for revenue performance and the incorrect recognition of expenses and obligations from previous years led to distortions in budget execution reports submitted to the Milli Majlis (National Assembly).
The audit results further indicated that the financing mechanism for medical facilities under the Administration of Regional Medical Entities (TABIB) does not fully align with insurance principles, focusing primarily on maintenance costs rather than service-based outcomes. Furthermore, discrepancies between official population statistics and insurance forecasting resulted in redundant funding for certain categories of citizens, creating an unnecessary financial burden on the state budget and leading to an accumulation of surplus funds within the ITSF.
The report also highlighted rising administrative costs attributed to an incomplete legal framework and the proliferation of legal entities under TABIB. Additionally, the audit found that tariffs for medical services and per capita insurance fees lack a clear methodological basis, creating risks of inconsistency between costs and service rates. Procurement issues were also noted, where incorrect demand forecasting prevented medical supplies from reaching intended recipients, thereby hindering public access to healthcare services in Azerbaijan.
The Chamber of Accounts serves as the supreme audit institution of Azerbaijan, responsible for ensuring the efficient and transparent use of state resources. In recent years, Azerbaijan has undergone a comprehensive transition to a mandatory health insurance system to modernize its healthcare infrastructure and improve service quality across the country. These audits are part of a broader effort by the government to enhance accountability, fiscal discipline, and the effectiveness of social spending within state-funded institutions.
