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Personal Health Care expenditures (PHC) represent all revenue received by health care providers and retail establishments for medical goods and services as well as all non-patient and non-operating revenue, grants, subsidies, and philanthropy received by health care providers.
• Health Consumption Expenditures(HCE) represent spending for all medical care rendered during the year, and is the sum of PHC, government public health activity, and government administration and the net cost of health insurance.
• National Health Expenditures(NHE) equals HCE plus investment, or the sum of medical sector purchases of structures and equipment and expenditures for noncommercial medical research.
• Government public health activity measures spending by governments to organize and deliver health services and to prevent or control health problems.
• Government administration and the net cost of health insurance includes the administrative cost of running various government health care programs, and for private insurers, the net cost represents the difference between premiums earned and the claims or losses incurred for which insurers are liable.
• Finally, the category of Investment includes spending for noncommercial biomedical research and expenditures by health care establishments on structures and equipment.