In recent years an increase in medical care expenditures has been notable in nations throughout the world. The generally accepted causes of this universal phenomenon include progress in medical science, development of new drugs and medical technology, extended life span that has led to an increase in the aged population, specialization of those engaged in medical work and the mounting medical care costs that reflect an increase in personnel expenses. The main factors, however, vary among nations. In this essay, factors contributing to the increase in medical care expenditures in Japan and the United States are analysed. The conclusion is that the increase in the United States is due mainly to the rise in medical fees, whereas the main factor in Japan is related to the increase in the demand for medical care. Secondly, examples are presented of the various factors that affect the demand for medical care, which chiefly account for the increase in medical care expenditures in Japan. The above factors are related to medical culture, methods of making medical fee payments, increase in medical care facilities, progress in medical technology, development of new drugs, spread of health screening practices and diffusion of health insurance. The author has reported the results of various studies undertaken in Japan to determine the relative influences of these factors.
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