Analyzing influential factors on healthcare expenditures

Abstract

This study used an Autoregressive Distributed Lag (ARDL) model to examine the influence of inpatient and outpatient service expenditures on total healthcare expenses from 2000 to 2021. The ARDL model, renowned for its capacity to handle variables with distinct levels of integration and identify cointegration connections, is employed to examine both the immediate and prolonged dynamics of healthcare expenditure. The research demonstrates that expenditures on hospital services have a substantial and beneficial impact on overall healthcare expenses, but the impacts of expenditures on outpatient services are more complex and varied. The results indicate that hospital expenses play a significant role in healthcare expenditure, which is essential information for policymakers who are concerned with controlling costs and allocating resources efficiently in the healthcare industry. The study presents a novel method for controlling outpatient spending that has the potential to reduce the increasing costs in the healthcare industry.