Public and Private Sector Interface

A major feature of the health sector is the existence of health insurance, either public or private. Often both coexist in the same country. Public health insurance is often accompanied by public provision of health care. We consider two main areas of public–private interface: in funding of health care expenditures and in provision of health care. Within each area, both positive and normative views are explored. On funding issues, the role of three main sources of funds—public health insurance, private health insurance, and out-of-pocket payments—and their interactions are addressed. Topics covered in provision of health care include interaction of public and private providers, dual practice, and public–private partnerships. Empirical evidence is also reviewed.