Final answer:
The allocation of pre-established total expenditures in a health care system or subsystem refers to how the available resources are divided and distributed among different aspects of the system.
Step-by-step explanation:
The allocation of pre-established total expenditures in a health care system or subsystem refers to how the available resources are divided and distributed among different aspects of the system. It involves determining how much money should be allocated to each component, such as primary care, specialist care, medications, equipment, and administrative costs.
For example, in a fee-for-service system, providers are reimbursed based on the cost of services they provide. This means that more funds may be allocated to areas that require expensive procedures or treatments. On the other hand, in a health maintenance organization (HMO), providers receive reimbursement based on the number of patients they handle. In this case, the allocation of resources may prioritize preventive care and keeping patients healthy to minimize costly interventions.
The specific allocation of expenditures will vary depending on factors such as the goals, priorities, and specific needs of the health care system or subsystem.