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3. Financing

Chapter summary

The Portuguese health system draws on a mix of public and private

financing.

The NHS is predominantly financed through general taxation.

The health subsystems, which provide comprehensive or partial health

care coverage to between one fifth and one quarter of the population,

are financed mainly through employee and employer contributions.

Private VHI covers about 26% of the population, and it mainly has a

supplementary role.

Total health expenditure represented 9.5% of the country’s GDP in 2014.

Around 35% of total health expenditure, is private, mainly in the form

of out-of-pocket payments (both co-payments and direct payments

by patients), and to a lesser extent in the form of premiums to private

insurance schemes and mutual institutions.

While user charges exist for consultations, emergency visits, home visits,

diagnostic tests and therapeutic procedures, around 60% of the population

is exempted from paying them.

The Ministry of Health receives a global budget for the NHS from the

Ministry of Finance, which is then allocated to the several institutions

within the NHS.

The Ministry of Health allocates funds to the health regions, based on

a combination of historical expenditure and capitation, which pay for

primary care and specific health programmes.

Public hospitals are funded through global budgets, but with an increasing

role of diagnosis-related groups (DRGs), and private insurers and health

subsystems pay providers.

3. Financing