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Classifying OECD Health Systems by Financing Structure: An Empirical Latent Profile Analysis
Jebağı Canberk Aydın1, Gülbiye Yaşar2
1Department of Health Management, Faculty of Health Sciences, Trakya University, Edirne, Türkiye.
Summary
This study empirically classifies Organisation for Economic Co-operation and Development (OECD) countries into five distinct health system financing profiles. These profiles offer a data-driven approach to understanding diverse health system funding structures for comparative policy research.
Area of Science:
- Health Policy and Systems Research
- Comparative Health Economics
- Health Financing Analysis
Background:
- Traditional health system classifications often rely on deductive typologies.
- Empirical classification using harmonized financing indicators is needed for OECD countries.
- This study addresses the gap by empirically clustering OECD health systems based on financing.
Purpose of the Study:
- To empirically identify and characterize distinct health system financing profiles within OECD member countries.
- To move beyond deductive typologies by using harmonized financing data.
- To provide an empirically grounded classification for comparative health policy analysis.
Main Methods:
- Latent Profile Analysis (LPA) applied to 10 WHO Global Health Expenditure Database indicators (2022).
- Analysis included all 38 OECD member countries with z-standardized indicators.
- A five-class solution was selected based on statistical fit, interpretability, and class separation.
Main Results:
- Five distinct empirical financing profiles were identified: social insurance-oriented public, lower-spending private-mix, lower-spending mixed social-insurance, tax-financed public, and high-spending private-dominant.
- Key differentiating indicators included social insurance contributions, per capita expenditure, government transfers, and public/private spending shares.
- Strong between-class separation was observed for several core financing metrics.
Conclusions:
- The identified classes represent empirical financing profiles, not exhaustive health system types.
- These profiles complement existing health system typologies by empirically detailing the financing dimension.
- The findings facilitate more explicit comparative analysis of OECD health system financing structures.
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