The basic objective of healthcare systems is to meet a country's health needs in the most equitable and efficient manner, while remaining financially sustainable. Each country, given the historical evolution of its healthcare system, adopts different strategies to achieve these goals. The financing of healthcare through public and/or private channels is one important component of this strategy, as it has a significant bearing on the way healthcare is delivered and also has implications for the health policy goals of equity, efficiency and sustainability. Understanding what determines these expenditures is important from the viewpoint of health policy. This paper examines the relationship between income and public and private healthcare expenditures.
