In its simplest form health care financing represents a flow of funds from patients to health care providers in exchange for services. There are multiple financing options available to raise revenue for the provision and delivery of healthcare. These include: Out-of-pocket payments, Third-party payments and Hybrid models.

International comparison show that different countries use different ways of paying for health services and to a large extent these differences are a result of historical factors. The method used to pay health care providers normally evolve alongside the financing systems over time. Most countries rely on different sources of funding and often retain elements of the previous system when a new method of financing is introduced.