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Passive purchasing typically uses existing budgets as the basis for future budgets, unlike strategic purchasing, and takes no or little account of information such as the cost, quality and efficiency of the services, and service provider, being funded.

Strategic purchasing involves the payment of (or allocation of funds to) providers based on criteria such as the cost, quality and efficiency of the services, and service provider, being funded. A strategic purchase links at least part of provider payment to performance and uses incentives.

Pooling is the accumulation and management of financial resources to ensure that the financial risk of having to pay for health care is borne by all members of the pool and not by the individuals who fall ill. The main purpose of pooling is to spread the financial risk associated with the need to use health services

Service coverage is one of the dimensions of universal health coverage (UHC) and refers to the population entitled to a benefit package. It is also one of several measures of how well a health system is performing in terms of UHC.

Service coverage is one of the dimensions of universal health coverage (UHC) and refers to those health services and goods included in a benefit package. It is also one of several measures of how well a health system is performing in terms of UHC.

Most commonly used to refer to a retrospective provider payment mechanism, under which each individual service is reimbursed according to an agreed fee schedule. Sometimes also used to refer to a type of patient out-of-pocket payment.

Community based health insurance refers to small-scale voluntary health insurance schemes designed to provide a range of health services, typically through local health centres and rural hospitals

An approach to paying health service providers in which rates of payment are established in advance, regardless of the cost of treating an individual case. Examples include payments to hospitals based on diagnostic related groups combined with the expected volume of services, and primary providers based on per capita or capitation funding, i.e. a fixed amount per person covered.

Payments made for services after they have been provided, as opposed to prospective payments.  Examples of retrospective provider payment include fee-for-service, payment per inpatient day or per treated case. Also includes, where relevant, reimbursement to patients who make the initial payment and then claim from the purchaser, as in indemnity insurance schemes.

Adverse selection refers to the phenomenon in voluntary health insurance schemes where higher risk individuals are more likely to join than lower-risk individuals, hence limiting the scope for effective risk-sharing. Premium contributions increase as a result, with lower risk individuals more likely to leave, or not join a scheme, leading to a cycle of increasing imbalance in risks, financial instability, and upward pressure on premiums.

Voluntary health insurance. Health insurance schemes where the decision to join and contribute is not required by government but is rather a decision made by individuals, households, or private companies. Such schemes may be for-profit e.g. corporate-funded health services, or non-profit e.g. community-based health insurance schemes.

Universal Health Coverage. The goals of a health system, that people (residents, citizens) in a society can access comprehensive and quality services, and use them when needed without facing severe financial hardship.

Total health expenditure. The sum of public and private spending on health. Public spending includes expenditures made through government health budgets and social health insurance programmes. Expenditure on personal health care, collective health services and the operation of health systems, plus capital investment are all included.