HMS, HAG EQ-Bank 219 MC

Rising healthcare costs globally present challenges for Australia's healthcare system sustainability. Which factor contributes MOST significantly to increasing healthcare expenditure?

Decreased use of generic medications in favour of brand-name drugs
Reduced investment in medical research limiting treatment options
The cost of medical research and development of new treatments and technologies
Lower healthcare workforce salaries reducing system operating costs

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\(C\)

Show Worked Solution

C is correct: Medical research and new technology development require significant ongoing investment contributing to rising costs.

Other Options:

A is incorrect: Generic medication use actually helps reduce costs, not increase them.
B is incorrect: Reduced research investment would lower costs but compromise healthcare quality.
D is incorrect: Lower salaries would reduce costs, not increase healthcare expenditure.