Healthcare systems can be categorised along the public/private axis into two main types: publicly administered systems and systems based on compulsory health insurance provided by the private sector. This study compares the efficiency of these two models across the 38 member countries of the OECD, utilising a broad spectrum of performance indicators developed by the OECD secretariat. On average, performance improves with an increase in healthcare budgets; however, further enhancements come at rising costs. There is no evidence supporting the hypothesis that transitioning from a publicly administered system to a privately dominated system will enhance efficiency. By contrast, there is strong evidence that overall efficiency increases with the public share of financing. These conclusions also hold true for the more restricted group of OECD countries in Europe.
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