Research On The Relationship Between Health Expenditure And GDP Based On Health Output

[Objective] One objective is to search a method for the total health expenditure in the methodology, which will be more generally applicable. Another is to put forward some targeted suggestions for the national health development in the aspect of health expenditure indicators.[The data source] The data of this study is from the World Bank (WB) and the World Health Organization (WHO) official website, covering 214 countries in the world, from 1995 to 2012.[Method] This study uses a combination of scattered diagrams and the statistical description method with the 214 countries’19 years of data. Each data point is called "country time point". The comparable price is used.[The research content] The first step is to select the health expenditure evaluation indicators and health outcomes indicator. The indicators of health expenditure include per capita health expenditure, the percentage of health expenditure in GDP, the percentage of general government health expenditure in total health expenditure, the percentage of general government health expenditure in GDP, the percentage of social security expenditure on health in health expenditure, the percentage of social security expenditure on health in GDP. The indicators of health outcomes include life expectancy at birth, infant mortality, neonatal mortality and mortality of children under 5 years old. The second step is to analyze the relationship between health expenditure and economic level by the scatter diagram, and summarize the general rules. The third step is to distinguish "good" and "bad" health outcomes, and put the features into the scatter diagram. The fourth step is to divide the per capita GDP into 4 sections. In every sections, we put forward proposed value of the health cost indicator. The fifth step is to put the results of this study into the evaluating of health expenditure of China and Beijing.[Conclusion] (1) When GDP per capita is in defferent level, the scatter diagram of health expenditure and GDP per capita has different rules. When health outcomes are taken into consideration, the rules are the same. (2) Different proportion of aging populations, equity of income, and the continent situates relate to defferent health expenditure, and health outcomes. (3) When GDP per capita is in defferent level, better health oucomes don’t relate to more health expenditure. Input-output ratio should be taken into consideration fully. (4) The proportion of social security expenditure on health for general government expenditure on health may not be higher in an aging country. But the proportion just be higher when income is fair. (5) The results of this study should be used combined with the characteristics of the country.[Suggestions] Suggestions about research work include:(1) The study should be dynamic as GDP develops. (2) Three factors of the nation were used in this study. More factors can be used in the research, if the data of the factors is available. (3) In this study, the per capita GDP is divided into 4 sections. The division standard can be more delicate. Suggestions about evaluation of total health expenditure include:(1) What is more important for the development of health expenditure is not continued input, but better input-output ratio because of diminishing of marginal returns. (2) Only one set of standards will not suit for all countries and districts. (3) We should give full consideration to the improvement of people’s health insead of inscreasing input because the ultimate goal is the former.