| It is the insufficient of national health expenditure (NHE) that led the loss of health development of China. Meanwhile, the unbalanced between the development of health expenditure and that of economics mainly has effect on it. To enlarge the financial investments is the way to solve this problem. Analyzing the correlations and influence of factors in consistence of NHE, and enlarging the investments with pertinence would fit to the situation of developing country.Using the theory of Econometrics, referring to the prevalent model of other countries, this paper is to set up a NHE model of China. All the data accumulated were revised and smoothed according to the current estimated boundary of GDP. A time series factor analysis was conducted utilizing the history data from 1978 to 2003. The least squares method is to be used as mention and the multiple linear regressions is to be hypothesized under two-way ANOVA. Then the model was evaluated both by pre-event evaluation and health evaluation after the equations explanted.The model between the NHE and GDP of China shows the loss of development on NHE began from 1993 and it would be serious influence factors to economics development without interfere. The model of integrant of NHE shows that the providing capacity of health fund made of government fund, society fund and individual fund, and the first one was a guiding factor in the equation. Thereby, enlarge the proportion of government fund would expand the domestics need of economy.The development rate of NHE is to get no less than 20.1 percent; so as to meet the basic demand of WHO at the end of Eleventh Five Plan of China. Meanwhile, the government fund on health and the range of health insurance covered must be reinforced, thus the burden of individuals would be reduced. Promote the health prevention is a way to control the high increasing of NHE; Set up a effective and in-control mechanism for investing is a long-term aim for NHE.
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