Health Care Financing

Abstract

Abstract The methods used to finance personal health care service play a major role in shaping a country's health care system. Personal health care services are those services such as hospital care, physician care, dental services, and drugs that are provided directly to individuals. The financing methods influence the terms under which people access the health care delivery system, the types of health care provided, and the mechanisms used to allocate health care services. They also influence how the costs of health care services are distributed over the population by income and by health status. Two aspects of health care financing are the focus of this article: the sources of funds for health care services and the mechanisms used to pay individuals and institutions who provide health care services.