This paper explores factors affecting Out-of-Pocket payments for healthcare expenditures in SAARC countries. The specific objectives of the paper were to compare healthcare expenditure patterns amongst the SAARC countries and explore the macroeconomic, demographic and social factors influencing OOP payments for healthcare these countries. The model selection tests suggest that the fixed effect model is the most appropriate for the data, though the random effect model also provides valuable insights. Fixed effect model result showed that a 1 per cent change in GDP per capita, consumer price index, population aged 65 years and above causes change in out-of-pocket payments for healthcare by 1.08 per cent (p< 0.01), 0.09 per cent (p< 0.05), 1.20 per cent (p