The overall structure of health care financing reform in Ukraine is in line with leading international practices to improve the availability, quality and efficiency of health services. The purpose of transformational changes in the health care system of Ukraine is the effective functioning of the model of state guarantee of the health care package and equal access to quality medical services for every resident of the territorial community. The National Health Service of Ukraine (NHSU) acts as a state insurer within a clearly defined guaranteed package of medical services, is financed from the state budget and enters into agreements on medical care with public and private health care providers. To maximize the allocation of available resources, the NHSU uses a number of mechanisms, such as strategic procurement of health services and incentives to influence the behavior of health care providers. Adequate funding for health care creates an effective interaction between public authorities and local governments, which will contribute to the positive development of health care at the municipal level. The transfer of additional delegated powers to finance the medicine of the local community to local government budgets without adequate compensation resources from the State Budget of Ukraine causes problematic aspects of financial support of local authorities and does not contribute to the quality of medical services at the municipal level. The monitoring of the expenditure part of the budget of Chernivtsi region allowed to reveal the issues of financial support of the health care sector in the conditions of the pandemic and administrative-territorial reform. In the context of the COVID-19 pandemic, there is an urgent need to significantly increase budget allocations for the medical sector, which will help preserve the staff of medical institutions and increase their level of socio-economic protection. The proposed areas for improving the health financing system will provide an effective mechanism for managing budget funds at the local level to ensure the health of the community. Health care reform is aimed at better health care and requires a set of measures to improve the financial mechanism in such a way as to ensure the development of health care facilities at the regional level in accordance with the needs of the population..