Abstract:Objective: A study of factors affecting health expenditure per capital, which solves the corr elation problem occurred in linear regression. Methods: Principle Component Analysis is generated by using data of health expenditure per capital as well as GDP per capital, disposable income per capital, urbanization , aging of population, infant mortality rate, number of medical practitioners and beds from year 1990 to 2014. Results: explanatory variables all significantly affect health expenditure per capita. GDP per capita, disposable income per capita, number of medical practitioners and beds positively influence health expenditure per capita. While infant mortality rate, urbanization and aging of population negatively affect health expenditure per capita. Conclusion: Single factor have no impact on health expenditure per capital. The rise of health expenditure per capital is the result of multiple factors.