Health Expenditure Budget Allocation and Quality of Life on Health Care at Provincial Level

Abstract

This research aimed to analyze the effect of health expenditure budget allocation on the quality of life on health care at the provincial level. Health expenditure budget was composed of expenditure budget of the Ministry of Public Health and the National Health Security Office at the provincial level in the fiscal year 2009-2015. The indicators of quality of life on health care included a percentage of the disabled, inpatient, low birth weight babies, and mental health scores. The unit of analysis was provincial level. The feasible generalized least squares were used for the analysis of the relationship between health expenditure budget allocation and quality of life on health care. The results showed that the health budget allocation affected the quality of life on health care. It had a negative effect on disabled and low birth weight babies, and positive effect on mental health scores significantly at the 95, 99, and 90 percent respectively. In addition to using the same old budget allocation criteria which included the number of population, gross domestic product (GDP), the average income  of a household, factors mentioned above that had the impact on health care should be considered in order to be consistent with the development of the people’s quality of life. Therefore, the quality of life of the people in each province could be equally improved.