The insitute maintains and updates the database used for calculating the population’s service needs and determines the need-based coefficients on the basis of which each wellbeing services county receives its needs-based share of health and social services funding.
THL submits preliminary data on the need-based coefficients to the Ministry of Finance annually in the spring and updated data in August, after which the ministry produces the final funding calculations.
The assessment of service needs is largely based on the morbidity of residents. To ensure that the population’s morbidity is identified as comprehensively as possible, several different data sources are utilised in the calculation of need-based coefficients. Diagnosis data are drawn from THL’s Care Register for Health Care (Hilmo), and data from, among others, the Social Insurance Institution of Finland (Kela) and the Finnish Centre for Pensions are also used.
The calculation currently takes into account 123 different disease categories. These include in particular chronic diseases such as diabetes, hypertension and various cancers.
“Morbidity data based on diagnoses are extremely extensive. We have classified them in cooperation with professionals in the field so that the calculation includes a manageable number of diseases,” says Tuukka Holster, Senior Researcher at THL.
The model is continuously developed to ensure that morbidity data can be captured from registers as comprehensively as possible, so that service needs can be described and measured as accurately as possible.
In addition to the funding calculations themselves, THL assesses the growth in service needs across the country using the so-called SOME model. Forecasts produced by the model are used to estimate the funding needs of health and social services.
THL also conducts ongoing research to develop the funding model and maintains the so-called HYTE coefficient. The HYTE coefficient is an incentive that can be used to reward the work of wellbeing services counties in promoting health and well-being.
“Originally, the funding base for wellbeing services counties was formed from costs transferred from municipalities. It is gradually being adjusted towards a calculated funding level, which is largely based on service needs.”
THL granted an award to Children of the Station and the Cancer Society of Finland for their significant work to promote public health
The 2026 Public Health Award has been granted to Children of the Station and the Cancer Society of Finland in recognition of their significant and long-term efforts to promote the health and wellbeing of children and young people.
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Social welfare and healthcare finances
Real per-capita net operating expenditure increased the most in disability services. In 2024, the net operating costs of healthcare and social welfare amounted to EUR 24.6 billion. The per capita costs were EUR 4,395.