Question

What explains the greatest variation in health care spending across all countries?

What explains the greatest variation in health care spending across all countries?

Homework Answers

Answer #1

There is no uniformity in the spending on health care among the countries. It is high in some and low in others. The major reason for this is the providers of health care facilities exercise discretionary policy while providing the facilities.

The suppliers of health care like physicians charge more in developed areas and less in developing or underdeveloped areas. So this leads to variations in the health care spending.

For example, a knee replacement surgery in Canada and Australia is four times more expensive compared to that in Israel.

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