Health Care System Expenditure Essay 2022

Running Head: HEALTHCARE SYSTEM EXPENDITURE
HEALTHCARE SYSTEM EXPENDITURE
Name of the Student
Name of the University
Author Note

1HEALTHCARE SYSTEM EXPENDITURE
Introduction
Healthcare expenditure is referred to as the amount of money spent on the primary
and predominant causes that can improve the quality of life by improving health1. The
amount of the healthcare expenditure is one of the most important indicators of the overall
development. All the developing countries need to make policies that can have a future
impact on the health and the surrounding environment of the people2. Health is a resource for
the sustainable development of a country and along with that it is also an important outcome
for the sustainable development of the country. These goals cannot be achieved when there is
high prevalence and risk of debilitating illness in any country and thus, in order to consider
overall development of any country there has to be increase in the healthcare expenditure3.
This essay is going to discuss about the rapid growth of healthcare expenditure due to aging
of population, longer expectancy of life in an individual, unhealthy lifestyle of the individuals
and also the epidemiology of the diseases. This essay is also going to discuss the impact of
increasing risk of cardiovascular diseases among the people that demands proper care and
risk management among the people. As there is increased development in the field of science
and medicine that have increased the demand among the individuals about longer life
expectancy and this expectancy causes increases healthcare expenditure4.
1Bedir, Serap. "Healthcare expenditure and economic growth in developing countries." Advances in Economics and Business4, no. 2 (2016):
76-86.
2Samadi, Alihussein, and Enayatollah Homaie Rad. "Determinants of Healthcare Expenditure in Economic Cooperation Organization
(ECO) Countries: Evidence from Panel Cointegration Tests." International journal of health policy and management 1, no. 1 (2013): 63.
3Sturm, Roland, Ruopeng An, Josiase Maroba, and Deepak Patel. "The effects of obesity, smoking, and excessive alcohol intake on
healthcare expenditure in a comprehensive medical scheme." South African Medical Journal 103, no. 11 (2013): 840-844.
4Geue, Claudia, Andrew Briggs, James Lewsey, and Paula Lorgelly. "Population ageing and healthcare expenditure projections: new
evidence from a time to death approach." The European Journal of Health Economics 15, no. 8 (2014): 885-896.

2HEALTHCARE SYSTEM EXPENDITURE
Discussion
The development goals for the new generation means that the developmental goals
offer a way of measuring the overall progress across the economic, social, and environmental
causes of sustainability. At the same time, better healthcare conditions is also a major
determinant of development in many countries5. This has led to the overall increase in the
healthcare expenditure and it is expected to increase in the coming years. As the healthcare
expenditure is increasing when the individuals are at their last years of life it is expected to
increase as a result of the changes in the demographic factors. All across the globe there has
been comparison of the national healthcare data compiled by the World Health Organization
(WHO) and the World Bank6. When the data has been analyzed it was seen that it consisted
of national sources that spend on the health issues along with the expenditures made by
normal individual. This data gives the information from the public, private and external
sources that can have many implications for the health systems7.
Drivers of healthcare expenditure
There is increased prevalence of chronic diseases that includes cardiovascular
diseases that is putting increased burden on the healthcare expenditure in many countries.
Analysis was done to know the cost of illness that can have the potential in the healthcare
expenditure and it was seen that the total cost of the healthcare expenditure was more than the
5Callander, Emily J., Lisa Corscadden, and Jean-Frederic Levesque. "Out-of-pocket healthcare expenditure and chronic disease–do
Australians forgo care because of the cost?." Australian Journal of Primary Health 23, no. 1 (2017): 15-22.
6Khan, Jahangir AM, Sayem Ahmed, and Timothy G. Evans. "Catastrophic healthcare expenditure and poverty related to out-of-pocket
payments for healthcare in Bangladesh—an estimation of financial risk protection of universal health coverage." Health policy and
planning 32, no. 8 (2017): 1102-1110.
7Bernard, Didem Minbay, Patrik Johansson, and Zhengyi Fang. "Out-of-pocket healthcare expenditure burdens among nonelderly adults
with hypertension." The American journal of managed care 20, no. 5 (2014): 406-413.

3HEALTHCARE SYSTEM EXPENDITURE
socio-economic status of the individuals who were admitted for the treatment of the
cardiovascular diseases8. Cardiovascular diseases thus, provide an insight on the healthcare
system expenditure from a financial perspective. The private health insurance has increased
rapidly over the last decade and that is due to the faster spending in many services such as
physician, dietician, clinical services and also the prescription drugs. Thus, the increase is due
to the faster use of the drugs consistently by the patients who are suffering from the chronic
diseases to treat their diseases9.
CVD: Cause for expenditure
CVD is a term that is used in Australia to describe various conditions that affect the
blood vessels and heart diseases. Among all this, coronary heart diseases and stroke are the
most serious and most common type of CVD10. The main causes that can lead to CVD is
atherosclerosis that leads to deposition of fat, cholesterol and other substances that is built up
in the inner lining of the arteries and this can cause plaque. There are a number of factors that
can increase the risk of CVD that includes tobacco smoking, overweight, high blood pressure,
high blood cholesterol level, obesity, inadequate physical activity along with poor nutrition
and diabetes11.
Decrease in mortality rate
8Rasu, Rafia S., Walter Agbor Bawa, Richard Suminski, Kathleen Snella, and Bradley Warady. "Health literacy impact on national
healthcare utilization and expenditure." International journal of health policy and management 4, no. 11 (2015): 747.
9Samadi, Alihussein, and Enayatollah Homaie Rad. "Determinants of Healthcare Expenditure in Economic Cooperation Organization
(ECO) Countries: Evidence from Panel Cointegration Tests." International journal of health policy and management 1, no. 1 (2013): 63.
10Bedir, Serap. "Healthcare expenditure and economic growth in developing countries." Advances in Economics and Business4, no. 2
(2016): 76-86.
11Geue, Claudia, Andrew Briggs, James Lewsey, and Paula Lorgelly. "Population ageing and healthcare expenditure projections: new
evidence from a time to death approach." The European Journal of Health Economics 15, no. 8 (2014): 885-896.