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Percentage of GDP Spent on Health Care

Basic Facts

Stage of development


Potential or current usage

Measuring NZ’s national expenditure on the health care system can be used to compare national expenditure with other developed economies.

Brief overview of the measure

General description

Proportion of GSP spent on healthcare is a relative measure which shows how much of a country’s income goes to fund health services.

Rationale for selection

Provides a way of comparing national expenditure with other developed economies.

Type of measure


Domain(s) of quality


Application and interpretation of the measure

Stated intent of the measure

This indicator measures the percentage of GDP spent on health care.

Caveats - Considerations

This indicator needs to be read alongside other general population health and outcome measures.

Level of health care delivery/setting

Specifies the level of health care delivery/setting to which the measure most appropriately applies. (Use of the measure at other levels of health care delivery may be possible, although it is important to note that in these instances some variables for the measure may be subject to change.)

Target population

Not applicable

Stratification by vulnerable populations

Not applicable

Calculation of the measure

Output of calculation

Percentage of GDP spent on health care

Numerator description

Health care expenditure

Numerator exclusions


Denominator description

Total GDP

Time period

1 year.

Criteria/standard for optimal performance

Not applicable

Data source


Method of extraction

Describes the source of the required data, and any challenges identified For example, for practice level indicators this may be the practice management system. For peer review/professional development purposes, the data source may be the patient record, utilising manual searches. For indicators with a higher level of focus, aggregated data at organisational levels or national data warehouses may provide data.

Appraisal of the measure

Availability of evidence to support application of the measure

The measure has been developed or endorsed by an organization that promotes rigorous development and use of clinical performance measures (at an international, national, regional or local level).

Evidence of feasibility and reliability of implementation

Reliability - The measure has been demonstrated to be reliable (i.e. free from random error)., Interpretation - The measure allows unambiguous interpretation of better or worse performance., Data extraction - Data collection specifications for the measure are well defined., Data sources - Required data elements for the measure can be obtained from existing data sources., Availability of data - Required data elements for the measure can be gathered during routine practice activities, IT software - Existing IT software is sufficient for data collection., Validity - The measure has been demonstrated to be valid (i.e. it measures what it purports to).

Other items

Owner details

Reference number


Date of entry to library

2012-07-30 17:53:32

Owner (Organisation name)

Health Quality and Safety Commission, Indicators project team

Owner (Email contact)


Creator (Organisation name)

Health Quality and Safety Commission, Indicators project team

Creator (Email contact)