The Dutch Health Care System
The Netherlands has a health insurance and tax-based health care system. Basic health insurance is mandatory for all, and risk selection is not allowed. Private payors and private healthcare providers negotiate on quantity and price. In this way, insurers serve as purchasers and health care institutions as providers of medical care.
Health insurance is mostly paid for through payroll taxes while the rest is collected through premiums by various private health insurance companies. On the healthcare side, Dutch hospitals use a system based on Diagnosis Related Groups (DRGs). Payment by DRGs means that a lump sum is paid for well-defined medical conditions.