The health and long-term care sectors remain highly dependent on labour inputs, but capital is also a key factor in the production of health services. How much a country invests in new health facilities, the latest diagnostic and therapeutic equipment and information and communications technology (ICT) can have an important impact on the capacity of a health system to meet the health needs of the population and thus contribute to better outcomes. For example, a low level of MRI and CT scanners (see indicator “Medical technologies” in Chapter 5) can have consequences on the ability to detect diseases at an early stage. However, the level of capital expenditure tends to fluctuate more from year to year than current spending on health services, as investment decisions can be much more dependent on economic circumstances and political or business choices as well as reflecting future needs and past levels of investment. In making such decisions, policy-makers and providers need to weigh up not only the short-term costs, but also the potential benefits in the short, medium and longer-term. As with any industry, a lack of investment spending in the present can lead to an accumulation of problems and bigger costs in the future as current equipment and facilities deteriorate.