Health is universally regarded as an important index of human development. Improvements in health would translate into higher incomes, higher economic growth and accelerated declines of poverty. Without understanding the factors which play an important role in health care utilization, efforts to promote demand for health care will not offer a pragmatic solution. Increasing utilization of health services is the prime goal for many developing countries. In this study, potential biases are controlled by an advanced statistical technique. The results of this study can provide unbiased estimates of the magnitude of household health care expenditure in Bangladesh. These findings will call for policy makers to either design new health policy or strengthen existing ones taking into consideration of various factors that are identified in this study in order to improve health care system in developing countries like Bangladesh.