The Effect of Sports Participation, Economic Factors, and Medical Capacity on Healthcare Costs in Iran

Abstract

Background: Rising household healthcare expenditures have become a critical global concern, compelling health policymakers to identify effective strategies for cost management. Iran, grappling with significant economic and healthcare challenges, faces increasing financial burdens on households within its healthcare system. This study aims to investigate the relationship between sports participation, economic factors, medical capacity, and healthcare costs in Iran, drawing upon the theoretical framework of the Grossman Health Production Function.

Methods: This study utilizes panel data covering all Iranian provinces over a 15-year period (2008–2022), resulting in 420 observations. The Panel Estimated Generalized Least Squares (EGLS) approach is employed to estimate the long-run associations between the identified health-producing inputs and healthcare expenditures.

Results: The findings reveal that higher levels of sports participation are significantly associated with reduced healthcare costs. Economic growth, proxied by Gross Domestic Product (GDP), shows a negative association with healthcare spending. Conversely, an increase in the inactive population and physician manpower is linked to higher healthcare costs, while a higher density of authorized hospital beds is associated with a reduction in household healthcare expenditures, potentially reflecting enhanced service efficiency.

Conclusion: The results suggest that integrating sports-based preventive programs with strategic management of medical capacity and economic planning could serve as a viable strategy for healthcare cost containment in Iran. Policymakers are encouraged to consider these multidimensional factors to mitigate the financial burden of healthcare on households and foster a more sustainable healthcare financing environment.