What factors are considered in hospital funding models? A review of the literature on health services funding in organisation for economic co‐operation and development countries

Background One of the most difficult challenges in healthcare involves equitable allocation of resources. Our review aimed to identify international funding models in Organisation for Economic Co‐operation and Development (OECD) countries for government‐funded public hospitals and evidence underpinning their efficacy, via review of the peer‐reviewed and grey literature. Methods Ovid‐Medline, Ovid Embase, Scopus, and PubMed were searched for peer‐reviewed literature. Advanced Google searches and targeted hand searches of relevant organisational websites identified grey literature. Inclusion criteria were: English language, published between 2011 and 2022, and that the article: (1) focused on healthcare funding; (2) reported on or identified specific factors, indexes, algorithms or formulae associated with healthcare funding; and (3) referred to countries that are members of the OECD, excluding the United States (US). Results For peer‐reviewed literature 1189 s and 35 full‐texts were reviewed; six articles met the inclusion criteria. For grey literature, 2996 titles or s and 37 full‐texts were reviewed; five articles met the inclusion criteria. Healthcare funding arrangements employed in 15 OECD countries (Australia, Belgium, Canada, Finland, France, Germany, Israel, Italy, the Netherlands, New Zealand, Norway, Spain, Sweden, Switzerland, and the United Kingdom [UK; specifically, England, Scotland, Wales and Northern Ireland]) were identified, but papers reported population‐based funding arrangements for specific regions rather than hospital‐specific models. Conclusions While some models adjusted for deprivation and ethnicity factors, none of the identified documents reported on health systems that adjusted funding allocation for social determinants such as health literacy levels. Highlights Organisation for Economic Co‐operation and Development (OECD) governments recognise the importance of funding allocation to reducing health inequalities Funding models in some OECD countries adjusted for deprivation and ethnicity No funding models adjusted for cultural and linguistical diversity or health literacy levels For equitable allocation of resources, governments should consider broadening the range of factors considered in healthcare funding models