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Health Expenditure and Financing - Coggle Diagram
Health Expenditure and Financing
Basic Concepts
Health care expenditure: spending to treat/prevent disease
Health expenditure: broader (includes environment, lifestyle, etc.)
Types of Expenditure
Current (operating): salaries, drugs, hospital costs
Capital (investment): buildings, equipment
Main Aggregates (Health Accounts)
CHCMG: care + medical goods consumption
Current health expenditure: care + prevention + system management
Total health expenditure (THE): current + investment
Key Indicators
Expenditure per capita
Share of GDP
Real expenditure (adjusted for inflation)
Financing Sources
Public: taxes, government
Private: households, private insurance
Causes of Rising Expenditure
Practical factors
Technology growth
•More professionals
•Aging population
•Higher demand and expectations
Theoretical factors
Induced demand (supply increases demand)
•Moral hazard (insurance → overuse)
•Market failure (imperfect competition)
Financing Mechanisms
State funding (taxes, loans)
•Health insurance
•compulsory
•voluntary
•Direct payments
•out-of-pocket
•co-payments
Financing Arrangements
Collection (taxes, contributions, payments)
•Pooling (shared risk)
•Purchasing (pay providers)
Control of Expenditure
A. Supply control
B. Demand control
C. Types of regulation
Accounting: budgets, spending targets
•Medical: appropriate care, guidelines
•Evaluation: quality + efficiency