Decreasing health care prices in China could lower health expenditure.
The study looked at how the prices of health care goods in China affect the amount of money spent on health care per person. They used a special model to analyze the data and found that changes in the prices of health care goods have a bigger impact on health care spending than changes in the prices of health care services or government investment in health care. When the prices of health care goods go down, health care spending per person also goes down. But when the prices of health care services go down, people tend to use more health care services, leading to an increase in health care spending per person. Additionally, increasing the amount of money the government puts into health care leads to higher health care spending per person.