Health research has been rapidly growing within the realm of development economics. A recent and important question is whether national health expenditures significantly influence the health outcomes of a nation. While health budgets increase by millions of dollars every year, there is no consensus on whether these increases have a positive effect on overall medical care. Using macro-economic data from 155 developed, transition, and developing nations, I provide econometric evidence towards this question. Furthermore, I attempt to show variable returns to scale by separating the country set into four human development levels. The results show a significant and positive relationship between health expenditures and health outcomes, but fail to show a trend in returns to scale.