With an area of 450 000 km2, Sweden is one of the largest countries in Western Europe. It is 1500 km from north to south. It has nearly 9 million inhabitants (20 per km2). It is a constitutional, hereditary monarchy with a parliamentary government. Sweden is highly dependent on international trade to maintain its high productivity and good living standards. Many public services are provided by Sweden's 289 municipalities and 21 county councils. Municipal responsibilities include schools, child care and care of the elderly, as well as social support for people with a chronic mental illness. The county councils are mainly responsible for healthcare, including psychiatric care, and public transport at the regional level. Sweden is characterised by an even distribution of incomes and wealth. This is partly a result of the comparatively large role of the public sector.

The healthcare system

Sweden's healthcare system is governed through the three levels of government – central, county and municipality. Central government is responsible for legislation within the healthcare system, higher education (universities), research funding, the health insurance system, and general and directed subsidies to the counties and municipalities to help them carry out different public service measures. The 21 counties are responsible for specialised healthcare activities, which include hospitals and primary healthcare (general practitioners) and the medical professionals working there. The 290 municipalities are responsible for social services for elderly persons and those with a disability, including a mental disability. This includes not only social support but also medical nursing.

The public healthcare system is financed by taxes raised at all three levels of government. A minor part of healthcare is carried out on a private basis (mostly short-term treatment). Private care is most common in the big cities and is rare in rural regions. The management of the care and social services provided for people with mental disorders is handled by the counties and the municipalities.

In 2001 the total expenditure on medical care in Sweden was a19.1 billion, which represented 8.0% of gross domestic product (GDP). After allowing for income from patient fees and so on, the net cost to government was a12.1 billion.