Publicly financed health care: Public financing accounted for 78.2 percent of total health spending in 2012 (Organisation for Economic Co-operation and Development, 2013). The public system is financed primarily through a corporate tax pooled nationally and allocated back to the regions, typically the source region (there are large interregional gaps in the corporate tax base, leading to financing inequalities), and a fixed proportion of national value-added tax (VAT) revenue collected by the central government and redistributed to regions unable to raise sufficient resources to provide LEAs (see section on health disparities). Regions are allowed to generate their own additional revenue, leading to further interregional financing differences. Every year the Standing Conference on Relations between the State, the Regions and the Autonomous Provinces (set up in 1988, with the presidents of the regions and representatives from the central government as its members) sets the criteria (population size and age demographics) used to allocate the funding for delivering the LEAs among the regions. LHUs are funded mainly through capitated budgets.