A2.8 The different ways in which the sectors are funded

Qualification: T Level Technical Qualification in Health
Unit: Core
Learning outcome: A2: The healthcare sector
Assessment criteria: A2.8 The different ways in which the sectors are funded

• To provide services, all healthcare organisations must have a source of funding
• This money is used to pay for staff and equipment as well as other operations, such as research and development
• Public sector organisations are primarily funded by the taxpayer in the form of National Insurance Contributions (NICs) as well as general taxation (income tax, VAT etc.).
• Some public sector bodies also have additional sources of funding, such as prescription or dental charges, parking charges and treatment of private patients
• The private sector is usually funded by their patients – this could be by direct payments or insurance premiums. In some cases, the public sector (NHS) may pay the private sector for one of their patients to receive treatment
• The third sector includes charities, not-for-profits and voluntary organisations. These organisations are funded by donations, fundraising, grants and corporate sponsorships