Figure 1Trends in 6 predictors of health expenditure, 2001-2010. The horizontal axis represents year, and the vertical axis shows the difference between each year and the base year 2001. (A) Population aged 65 years and over, (B) population, (C) gross domestic product, (D) Medicare Economic Index, (E) hospital number, and (F) physician number. NNF, non-negotiable factor; NF, negotiable factor.
Figure 2Contribution of factors to health care expenditure. The width of each included bar represents the percentage of difference in outcome explained by the factor, and each variable shows the factor. AMBEXP, expenditure per ambulatory care; HOSEXP, expenditure per hospitalization; CLINIC, number of clinic; GHSP, numbers of general hospital; MEI, Medicare Economic Index; POLICY, coverage expansion; OLD65, population aged 65 and over; GDP, gross domestic product per capita.
Table 1.Classification of determinants of health expenditure
|
Predictor |
Variable |
Price |
Frequency |
Intensity |
|
Macro environment |
Price inflation |
Producerprice index |
O |
- |
- |
NNF |
Wage index |
O |
- |
- |
NNF |
Income |
GDP per capita |
- |
O |
O |
NNF |
Demand |
Population size |
- |
O |
- |
NNF |
Proportion of population aged 65 and over |
- |
O |
O |
NNF |
Health policy |
Expanding coverage |
Change of insurance coverage |
- |
O |
- |
NNF |
New tech- nology |
Applied new medical technology |
- |
O |
O |
NNF |
Political decision |
Medical fee increasing |
O |
- |
O |
NF |
Induced demand |
Provider induced factor |
Numbers of physician |
- |
O |
O |
NF |
Numbers of facility |
- |
O |
O |
NF |
Provider induced demand |
- |
O |
O |
NF |
Consumer induced factor |
Patient’s behavior to medical use |
- |
O |
- |
NF |
Table 2.Components and weights of the Medicare Economic Index
|
Component |
General hospital |
Hospital |
Clinic |
Price/Wage Index |
Wage |
Medical specialist |
0.140 |
0.140 |
|
Wage-health care |
Resident |
0.030 |
0.010 |
|
|
Nurse |
0.150 |
0.120 |
|
|
Practical nurse |
0.030 |
0.040 |
|
|
Pharmacist |
0.010 |
0.010 |
|
|
Dietitian |
0.010 |
0.010 |
|
|
Health worker |
0.050 |
0.050 |
|
|
Office worker |
0.080 |
0.080 |
|
|
Other position |
0.010 |
0.020 |
|
|
Hospital director |
- |
- |
0.310 |
|
Regular worker |
- |
- |
0.190 |
|
Transfer to reserve for retirement allowances |
- |
- |
0.020 |
|
Material cost |
Medicine |
0.160 |
0.160 |
|
PPI-medicine |
Treatment material |
0.100 |
0.120 |
|
|
Ingredient of meal |
0.020 |
0.040 |
|
|
Compensatory material |
- |
- |
0.020 |
|
Noncompensatory material |
- |
- |
0.080 |
|
Management expenses |
Welfare |
0.030 |
0.030 |
0.110 |
Wage-health care |
Transportation |
- |
- |
0.040 |
CPI-transportation |
Communication |
- |
- |
0.010 |
CPI-communication |
Electricity & water tax |
0.010 |
0.020 |
0.020 |
CPI-electricity |
Tax and public dues |
0.010 |
0.010 |
0.010 |
CPI |
Insurance premium |
- |
- |
0.010 |
CPI-insurance |
Rent |
- |
- |
0.040 |
CPI-rent |
Commission & service charge |
0.010 |
0.020 |
0.020 |
CPI-commission |
Repair and maintenance |
0.010 |
0.010 |
0.010 |
CPI |
Driving |
- |
- |
0.020 |
CPI-fuel |
Paper |
- |
- |
0.010 |
CPI-newspaper |
Reception |
- |
- |
0.020 |
CPI |
Fuel |
0.010 |
- |
- |
CPI-fuel |
Supplies |
0.010 |
0.010 |
0.030 |
CPI |
Depreciation |
0.050 |
0.040 |
0.060 |
|
Expense arising from outside manufacture |
0.030 |
0.020 |
- |
CPI |
Building maintenance |
- |
- |
0.010 |
CPI |
Inspection |
- |
- |
0.010 |
CPI |
Other |
0.010 |
- |
0.020 |
CPI |
Opportunity cost |
- |
0.010 |
- |
|
Capital |
0.010 |
0.010 |
0.030 |
|
Table 3.Determinants of health care expenditure, Korea, 2003-2010
|
β
|
SE |
t |
p-value |
(Constant) |
0.114 |
0.034 |
- |
0.001 |
GDP |
0.027 |
0.047 |
0.560 |
0.58 |
OLD65 |
0.207 |
0.053 |
3.885 |
<0.001 |
POLICY |
-0.034 |
0.308 |
-0.110 |
0.91 |
MEI |
-1.022 |
0.333 |
-3.073 |
0.003 |
PHY |
0.059 |
0.170 |
0.345 |
0.73 |
GHSP |
0.011 |
0.063 |
0.181 |
0.86 |
HSP |
0.006 |
0.026 |
0.239 |
0.81 |
CLINIC |
-0.084 |
0.265 |
-0.318 |
0.75 |
HOSEXP |
0.186 |
0.106 |
1.759 |
0.08 |
AMBEXP |
0.314 |
0.244 |
1.286 |
0.20 |