Budgeted Spending Essay

A further study by Ellis, et al. (2013) found that budgeted spending was often not ascribable to precise individuals, which tended to hinder the policymakers due to the level of detail and the variation in health care spending being difficult to explain. The data used in Ellis, et al. (2013) study included the NSW Admitted Patient Data Collection, with one record per separation, the NSW Emergency Department presentation data, with one record per presentation, the Medical Benefits Schedule (MBS) data, with one record per claim, and the Pharmaceutical Benefits System (PBS) data, with one record per prescription. The findings of their study revealed a positive association between age, specifically older males, poor health, obesity, smoking, cancer, and stroke and heart conditions with high fixed expenditure (Ellis, et al. 2013). Further, to this greater exposure to adverse health shocks was attributed to being born overseas, speaking a foreign language at home and receiving a low income which was also …show more content…
Hartwig’s (2008) was interested in the health care expenditure being compelled by wage increases in excess of productivity growth. Hartwig’s (2008) results provided support for Baumol’s theory. The rise in health care expenditure (HCE), according to Baumol’s model, was influenced by the nominal wage growth being in excess of productivity growth (Hartwig, 2008). The HCE and gross domestic product (GDP) were both variables in the difference between wage and productivity growth in the findings of Hartwig (2008). The findings were also in support of Baumol’s model of ‘unbalanced growth’ being able to form the theoretical foundation for research as to the role of labour prices in driving health care expenditure (Hartwig, 2008). The findings supported Baumol’s model which implies that HCE is driven by wage increases in excess of productivity