Financing

With regard to hospital treatment, The Danish healthcare system is funded through four types of grants, which are partly administered by the Danish Ministry of Interior and Health.

The types of grants are:

  • Block grant: The block grant depends a number of factors, e.g. socioeconomic characteristics for each region.
  • National incentive model: In addition to the national block grant, the regions also receive financing based on fulfillment of the incentive model. 
  • Co-financing by the municipalities: The municipalities pay a share of their citizen’s regional health expenses. This is to create incentives for effective health prevention in the municipalities. 
  • Settlement between the regions: Patients can decide to be treated in any hospital in Denmark. However, the region of residence pays for the treatment. Therefore, there is a regional payment scheme, where the regions charge each other for health expenses based on agreements.