The healthcare sector in Georgia is structured as a mixed system, comprising both public and private providers. The private sector dominates healthcare service delivery, with most hospitals and clinics operated by private entities, while the government plays a significant role in healthcare financing through the Universal Healthcare Program and various targeted state-funded programs, - according to the report published by TBC Capital.
As of the document, the sector is moderately concentrated, with ten major hospitals accounting for approximately 50% of total market revenue, while the remaining share is distributed among smaller providers.
"Over the past decade, Georgia’s healthcare sector has undergone a significant transformation, marked by expanded public funding, structural reforms, and growing private sector involvement. The introduction of the Universal Healthcare Program (UHC) in 2013 played a central role in improving access to healthcare services and reducing the financial burden on patients. By 2023, government healthcare expenditure reached 1.7 billion GEL, and UHC funding exceeded 1 billion GEL for the first time, accounting for over 62% of public healthcare spending. In 2024, UHC funding remained robust at 1.04 billion GEL, accounting for 51% of total healthcare expenditure - still above pre-pandemic levels. Meanwhile, out-of-pocket expenditures continue to represent a significant share—40% of total healthcare spending in 2023—highlighting ongoing gaps in financial protection and insurance coverage.
Private health insurance is expanding, with over 1.13 million policies issued in 2024 and written premiums reaching 534 million GEL. However, insurance still covers a relatively small share of healthcare expenditures (9%), indicating room for growth in insurance penetration and a need for better financial risk protection.
Demographic trends are reshaping the demand for healthcare services. Georgia’s population is aging, with those aged 65 and above increasing from 14.1% in 2013 to 16.2% in 2024, driving higher demand for chronic and long-term care. At the same time, a steady decline in birth rates—a 36% drop in total births since 2014—is expected to reduce future demand for pediatric and maternity services while accelerating population aging.
On the supply side, the healthcare workforce remains imbalanced, with a low nurse-to-physician ratio of 0.89, far below EU standards and regional country averages, potentially straining care quality and hospital operations. Healthcare infrastructure and personnel are heavily concentrated in Tbilisi, leading to regional disparities in access, particularly in rural and mountainous areas", - the document reads.
