Table 2

Comparison of features of the health financing systems of the USA, UK and Australia35

Features of health financingUSAAustraliaUK
% GDP on health expenditure12.9%8.6%6.8%
% public v private44.8%70%83%
Insurance payment mechanismsEmployer related insurancePrivate insurance with tax rebates; universal tax paymentsUniversal tax based insurance scheme
Hospitals/networks payment mechanismsVolume related paymentsGlobal budget and some volume relatedGlobal budgets through areas with performance pay
Practising medical practitioners per 1000 population (late 1990s)2.72.51.8
Community physicians/GPs payment mechanismsThrough private insurance: fee for service or sessional with incentivesNational fee for service with some practice related paymentsCapitation and practice payments with incentives
Nurses and allied health payment mechanismsThrough insurance cover mainly with safety netThrough public hospitals and specific programs; otherwise private paymentsThrough public hospitals and GPs
% Total health expenditure on pharmaceuticals10.1%11.4%16.3%
Pharmaceuticals payment mechanismsThrough private insurancePublic subsidy on basis of cost effectiveness with co-paymentsMainly publicly subsidised