Expenditure

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Expenditure

Expenditure (/ɪkˈspɛndɪtʃər/) is a term used in the field of Health Economics to refer to the total amount of money spent on healthcare services and products. The term is derived from the Latin word 'expendere', which means 'to pay out'.

Definition

In the context of healthcare, expenditure refers to the financial resources used for health-related services and products, including but not limited to, hospital care, physician services, prescription drugs, and health research. It is a key component in the analysis of Healthcare Financing and Healthcare Policy.

Types of Expenditure

Healthcare expenditure can be categorized into several types:

  • Direct Expenditure: This refers to the out-of-pocket payments made by individuals for healthcare services and products.
  • Indirect Expenditure: This refers to the non-monetary costs associated with illness, such as loss of productivity due to sickness.
  • Public Expenditure: This refers to the funds allocated by the government for healthcare services and products.
  • Private Expenditure: This refers to the funds spent by private entities, such as insurance companies and individuals, on healthcare services and products.

Related Terms

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