Healthcare Systems The healthcare financing flowchart in the UAE takes into account the fact that the UAE has a unique political organization. Each of the seven Emirates is autonomous. However, the emirates coordinate certain functions through a federal government to ensure that the emirates remain competitive in international trade (The Oxford Business Group, 2008). In terms of healthcare provision, there are three main functional areas. The three areas are healthcare financing, pooling of risk, and purchasing of healthcare The healthcare financing of the emirate of Abu Dhabi comes from three sources. First, the UAE Ministry of finance provides healthcare financing from taxes collected from workers and businesses operating in the UAE. The taxes also come from employers who remit income taxes to the government. Secondly, the emirate receives financing from international organizations working in the UAE. These organizations contribute towards healthcare financing by paying healthcare fees for their employees in the UAE, and by supporting the local health systems. The pooling of risks in the UAE takes place through social insurance and private insurance. Social healthcare insurance is a function of the Abu Dhabi government, while private health insurers provide healthcare funding as an insurance product for interested parties. The government also plays a role in the pooling of healthcare risks by supporting the provision of services to people who may not afford services any other way. The purchase of healthcare in Abu Dhabi takes place in public hospitals, private hospitals, and in pharmacies. Table 1: Healthcare Financing in the Emirate of Abu Dhabi Methods of Payments for Health Providers in Dubai and Abu Dhabi Different countries use different methods of payment to finance the healthcare services provided to their citizens. The UAE is unique because of the autonomy of each of the seven emirates that make up the country. As such, each of the emirates operates different methods of payment for healthcare providers. The two main typologies of provider payment methods are fixed or variable systems, and retrospective or prospective systems. Fixed and Variable Systems The fundamental feature that distinguishes fixed systems from variable systems is the relationship between activities and payments (Jegers, Kesteloot, De Graeve, & Gilles, 2002). Activities refer to the health services offered by the healthcare provider, while payments refer to the remittances made to the provider by the healthcare funder. In fixed systems, the funds remitted to the provider do not depend on the services offered. This amount is fixed, and the provider knows from the onset what the funder will pay for the services. This makes planning more effective on the part of the provider. However, the quality of care may suffer because of the need to keep costs within certain limits. On the other hand, variable systems are sensitive to changes in demand for healthcare services. If there is an increase in the activities of the healthcare provider, then the funder adjusts remittances accordingly (Jegers, Kesteloot, De Graeve, & Gilles, 2002). These systems introduce unpredictability in the provision of healthcare. The funder cannot tell in advance the amount of money needed to meet healthcare financing costs. Providers also do not spend sufficient time planning for health