Use the Time Series Model to Analyse the Situation of Health Expenditure and Financing in the United States
DOI:
https://doi.org/10.54097/188ptt74Keywords:
Health spending; Pharmaceutical spending; Time series; Forecasts; Healthcare.Abstract
As the GDP per capita continues to rise, the economy is developing rapidly. The demand for healthcare has increased accordingly, leading to a change in healthcare-related spending. Consequently, this paper collects data published by the Organisation for Economic Co-operation and Development on US health spending and pharmaceutical spending between 1987 and 2021 and conducts a time-series analysis of the data. It explores the changes that have occurred in health expenditure and financing in the U.S. and makes related forecasts. The analysis results find that health and pharmaceutical related expenditure in the United States shows growth and stability. However, there is a significant issue for these two huge costs, which is unsustainable spending on healthcare. In addition, the results of the predictive model show the United States will experience growth in the next decade to meet the increasing demand of people for health care and to promote a high-quality health care system in the country. Therefore, it is recommended to improve the management of the healthcare system and try to rationalize the allocation of healthcare-related expenses.
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