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Health care is a basic service in the country. It is available for everyone and it is also part of the family budget. People participate in the cost of the health system but government pays the largest part.
The health care system is based on the availability of hospitals. If the country has enough hospitals, the health situation will improve. The health index will also increase with the number of hospitals.
Improvement in the health situation will reduce the death rates in the country and increase life expectancy. This is also beneficial to the welfare situation in the country and results in a higher welfare index. It may also encourage immigration into the country and faster growth of the economy.
Hospitals require doctors, senior doctors, nurses and many other workers. Large numbers of them must be available or you will not be able to construct and maintain new hospitals. The cost of the health system will also increase as hospitals pay many salaries and carry considerable operating costs.
You are advised to make the investment. Give education priority to medical staff, increase their numbers and build the hospitals. The health care pages show how many hospitals are needed in your country and building that number will take the health system to an index level of 100. A higher level is even better but carries a high cost. A higher level will reduce death rates even further and amplify the effects of good health.
Building the health care system beyond the level of 250 does not make sense. It will increase the cost to far too high levels with too few advantages.
If the healthcare system index is higher than 250 and the financial index is lower than 150, hospitals will start closing down until the health index level is reduced below 250. These closings will stop if the financial index becomes higher than 150.