Comparative Study of Factors Affecting Private and Public Health Care Expenditures (Developed and Developing Countries)

Most countries have experienced rapid growth in their health care costs in recent years. Given the growing cost of this sector, it seems important to identify the components that affect health spending. The purpose of this study is a comparative study of factors affecting the cost of private and public health care in selected developed and developing countries.

The present study, using time series data for the period 2000-2019 and based on the data panel method, has examined the variables affecting health expenditures for the private and public sectors.

The variables of GDP, life expectancy, population over 65 years and urbanization rate in both groups of private and public in selected countries have a positive and significant effect on health care expenditures; The population under 14 years of age in both groups of countries had a negative and significant relationship with health care expenditures in both sectors; Also, out-of-pocket payment variable has been negative and significant in developed countries and positive and significant in developing countries. The coefficient of foreign aid variable in developing countries has been negative and significant. There is no literacy rate with health costs.

Considering the share of public and private sectors in health expenditures in developing countries, governments, as the largest public institution, should take the necessary measures to increase the share of public sector in health expenditures.