Therefore the purpose of this study was to empirically demonstrate state-level variations in financing of healthcare, hospital expenditures and health outcomes.;Precisely, aims of the three studies were to: (1) evaluate the state-level variations in healthcare financing and the factors that affect financing of healthcare, (2) examine the state-level variations in hospital expenditures with an application of spatial regression, and (3) assess the determinants of state-level mortality rates using a spatial Durbin fixed effect model. This research used panel data from 2000 through 2009, extracted from publicly available data files.;Findings from the first study were that state-level variations in public financing of health care (Medicare and M...