The health service provision involves contracts between three separate parties:
1. the beneficiaries; or patients
2. the fundholders or purchasers acting on behalf of the beneficiaries, and
3. the providers of services.
Benefits or services are supplied in kind to patients, and may be free-of-charge to them. The providers are independent and the contractual payments to them are paid either by capitation or by feefor-service, or by another means by the health service funding bodies. of-charge to them.