What are health care costs? When we speak of "health care costs,"we really mean total health expenditures Equation for medical expenditures E: E=P·Q E is expenditures on medical care P is the price of medical care Q is the quantity of medical care Bhattacharya,Hyde and Tu-HealthEconomics Bhattacharya, Hyde and Tu – Health Economics What are health care costs?  When we speak of “health care costs,” we really mean total health expenditures  Equation for medical expenditures E: E = P · Q ◼ E is expenditures on medical care ◼ P is the price of medical care ◼ Q is the quantity of medical care