Question

Explain the benefits of using health care expenditures as a percentage of a nation’s gross domestic product over per capita health care expenditures in comparing health care spending across nations.

Answer 1

GDP that is the gross domestic product is" the value of all goods and services provided in a country by residents and non-residents without regard to their allocation among domestic and foreign claims" as per WHO. Mathematically,  

,

Where a person can only consume or contribute to GDP in other means when he/she is healthy.

The world health organisation as defines Total expenditure on health as "the sum of general government health expenditure and private health expenditure in a given year, calculated in national currency units in current prices." That is the amount of money that the government spends on healthcare service.

Therefore the total expenditure on health is constituted under the element G in the equation above. As per the survey, Health financing is found out to be the most critical component of investment for most nations and their residents in succession to stay healthy and cared for.

As per the statistics, US currently ranks the highest under the health expenditure as a percentage of GDP.

The benefits for the same can be learnt as,

• The country can manage their average growth rate and thus adjust their PPP that is the Purchasing Power Parity
• Health economics is a necessary matter for the OECD, also more as increasing health costs and an aging population have raised as an issue for many developed countries. Thus helps an economy or nation identify the Increasing health cost per year, and further manage the cost.
• Helps in faster growth of the economy, as the country can increase the rate of both public and private spending.

If talking in respect to the US, they have successfully widened the gap between the other countries and their economic growth rate.