In this article, we will be taking a look at the 20 countries that spend the most on healthcare. If you do not want to learn about the global health market, head straight to the 5 Countries That Spend the Most on Healthcare.
The allocation of healthcare expenditures is a critical indicator of a nation’s commitment to the well-being of its citizens. In exploring the topic of countries that spend the most on healthcare, we delve into a complex landscape shaped by factors such as economic prowess, healthcare infrastructure, and governmental priorities. By examining the top spenders in healthcare, we gain insight into the various approaches nations employ to ensure access to quality medical services and address the evolving needs of their populations.
Global Healthcare Services Market Overview
The global Healthcare Services market was valued at USD 11.3 trillion in 2022 and is projected to reach USD 19 trillion by 2028, growing at a CAGR of 8.96% during the forecast period. Global healthcare spending outside the US is expected to grow at a faster rate than within the US, with China planning to add 20,000 hospitals in the next decade to increase access to healthcare. Brazil, with universal health care covering 75% of the population, presents significant investment opportunities due to rising medical inflation in the private sector.
Top countries with the best healthcare include the United Kingdom, known for its National Health Service (NHS) providing comprehensive healthcare services. Germany offers high-quality healthcare with a strong emphasis on research and technology. Switzerland is known for its efficient healthcare system and high life expectancy. Sweden provides universal healthcare with a focus on preventive care and patient outcomes. Japan offers advanced medical technology and high standards of care.
In the US, health care is a significant industry with over 145 million members covered by the top 5 health insurance companies. The country has seen consolidation in the healthcare sector, with declining hospital bed numbers and increasing cross-border M&A activity. The US spends more on health care compared to other countries, with financial statistics indicating that Americans spend more on health within three days than a person in the Central African Republic does in a year.
Navigating Healthcare Challenges and Opportunities in the United States
If you’re 65 years old, there are high chances that you’ll live for another 10 or 20 years. But about 95% of older adults like you will likely have at least one long-term health issue, like heart disease or Alzheimer’s, during this time. This is a big deal because this year, the US is hitting a peak in the number of 65-year-olds. Many people don’t realize how much money they’ll need for healthcare once they retire, and that’s a problem.
A Protected Retirement Income and Planning Study found that a whopping 84% of working Americans don’t see health as a big deal when planning for retirement. But the reality, according to the Alliance for Lifetime Income and Cannex Financial Exchanges Ltd., is different. They say that 38% of retired Americans aged 45 to 75 retired because of health issues. In short, healthcare costs can add up to tens of thousands of dollars during your retirement years.
In the United States, healthcare costs have been going up fast. Between 2000 and June 2023, the prices of everything went up by about 81%, but healthcare costs shot up by 114%. The COVID-19 pandemic has made things worse. Even as we move towards a stage where COVID is more like the flu, it’s still costing a lot to treat and prevent it. McKinsey estimated that the US will spend an extra $200 billion every year on COVID-related healthcare.
In 2022, nearly half of the total healthcare spending in the US went to doctors and hospitals. And get this: in 2020, the US spent almost a fifth of its entire economy’s worth (GDP) on healthcare. But despite all this spending, the US healthcare system doesn’t seem to be delivering great results. Life expectancy in the US dropped by 2.4 years from 2019 to 2021, while in other similar countries, it only dropped by 0.3 years.
Abbott Laboratories (NYSE:ABT) is a leading healthcare company committed to improving people’s health globally. With a history spanning over 130 years, Abbott has built a diverse portfolio of market-leading products tailored to long-term healthcare trends. Their strategy emphasizes balanced diversity, with four major businesses across different regions and customer groups. About half of Abbott’s sales come directly from consumers, making it highly consumer-facing in the healthcare industry.
In the fourth quarter, Abbott Laboratories (NYSE:ABT)’s medical device sales were robust, driven by the success of the FreeStyle Libre glucose monitoring device, which brought in $1.4 billion in sales alone, marking a 25.5% increase from the previous year. Abbott Laboratories (NYSE:ABT) aims to achieve annual FreeStyle Libre sales of $10 billion by 2028. Despite a slightly lower profit forecast for 2024, Abbott’s quarterly profit met analyst expectations at $1.19 per share. However, the diagnostic segment experienced a revenue decline due to reduced COVID-19 testing-related sales, although it remained in line with estimates at $2.5 billion. Abbott anticipates an adjusted profit range of $4.50 to $4.70 per share for 2024, slightly below analyst estimates.
AstraZeneca PLC (NASDAQ:AZN) is a leading pharmaceutical company renowned for its innovative cancer treatments like Tagrisso and Lynparza. It emphasizes precision medicine and collaborations to accelerate drug development. AstraZeneca PLC (NASDAQ:AZN) plans to invest in emerging technologies like artificial intelligence and digital health solutions. Financially, in FY 2023, AstraZeneca PLC (NASDAQ:AZN) saw a 17% increase in product sales to $17,145 million, with total revenue reaching $45,811 million. Key achievements include new medicine approvals and growth in oncology, cardiovascular, research, and rare disease sectors. AstraZeneca expects continued growth in revenue and core earnings per share for FY 2024.
A smiling healthcare professional, treating a patient with the PLEX platform.
Our Methodology
For our methodology, we have ranked the countries that spend the most on healthcare based on their GDP share in healthcare as of 2020. For the accuracy of data, we have relied on The Global Economy.
Here is our list of the 20 countries that spend the most on healthcare.
20. Bosnia and Herzegovina
Health Spending as Percent of GDP: 9.84%
Bosnia and Herzegovina’s healthcare system is complex, with multiple entities and funds overseeing it, making Bosnia and Herzegovina stand among the countries that spend the most on healthcare. Public spending on health exceeds regional and EU averages, with about one-third being private, mainly through out-of-pocket payments. The country faces significant health challenges, including high rates of non-communicable diseases and tobacco consumption. The COVID-19 pandemic has impacted life expectancy.
19. El Salvador
Health Spending as Percent of GDP: 9.85%
El Salvador, with a population of 6.4 million, is focused on improving its healthcare system and reducing mortality rates. In 2020, it saw an estimated 7506 excess deaths, highlighting a death rate of 116 per 100,000 population. The Ministry of Health operates 31 hospitals and 372 health units, while ISSS manages 11 hospitals and 71 health units. Maternal mortality has decreased to 31 deaths per 100,000 live births, though challenges persist, especially in healthcare access and quality for the poor and rural residents.
18. Argentina
Health Spending as Percent of GDP: 9.98%
Argentina, one of the countries that spend the most on healthcare, invests heavily in healthcare, with expenditure reaching 9.98% of GDP in 2020. Mortality rates have fluctuated over the years, with notable increases during economic crises, impacting vulnerable groups like the poor, elderly, and women. Public healthcare financing correlates with lower death rates, emphasizing the significance of state investments.
17. New Zealand
Health Spending as Percent of GDP: 10.03%
New Zealand’s healthcare system, predominantly government-funded (85%), provides free or subsidized services, yet certain groups face health disparities. The annual healthcare budget in May 2021 was $17.3 billion. Southern Cross Healthcare leads the private sector, collaborating with the public system.
16. Brazil
Health Spending as Percent of GDP: 10.31%
Brazil’s healthcare system is a significant focus, with 10.31% of GDP spent on healthcare, making it Latin America’s largest market. Spending has increased steadily, with per capita spending targeted to rise from $848 in 2020 to $1,165 by 2030, focusing on infrastructure and underserved areas. Mortality rates have decreased, with some fluctuations during the COVID-19 crisis, impacting different regions and demographics.
15. Australia
Health Spending as Percent of GDP: 10.65%
Australia prioritizes healthcare, with significant spending amounting to $241.3 billion in 2021-22, or $9,365 per person, representing 10.65% of the country’s economic activity. Government funding covers 72.9% of this expenditure, with the Australian government contributing $105.8 billion and state/territory governments $70.2 billion. Australia boasts higher numbers of practicing doctors and nurses per 1,000 population compared to the OECD average but fewer hospital beds. Life expectancy stands at 83.3 years, three years above the OECD average, with favorable preventable mortality rates and self-reported health status.
14. Spain
Health Spending as Percent of GDP: 10.71%
Spain allocates 10.71% of GDP to healthcare, with cardiovascular diseases being a major cause of death, particularly ischaemic heart disease in men and cerebrovascular diseases in women. In 2022, Spain reported 464,400 deaths, with circulatory system diseases contributing significantly. Life expectancy is high at 83.4 years, the EU’s highest, with progress seen in healthy life-years and reduced disability-adjusted life-years.
13. Malta
Health Spending as Percent of GDP: 10.84%
Malta’s healthcare system, funded through taxes, emphasizes public healthcare, boasting high life expectancy and good health outcomes. It offers both public and private services, with eight public hospitals, including Mater Dei Hospital, and three private hospitals on the main island. Despite spending less per capita compared to the EU average, Malta’s healthcare expenditure is significant, making Malta stand among the top countries that spend the most on healthcare. The COVID-19 mortality rate in Malta was 46% lower than the EU average by August 2021. The country’s death rate is 8.6 per 1,000 population. Public healthcare is free for Maltese citizens and EU residents with a Malta Health Card, while private health insurance is required for non-EU citizens.
12. Japan
Health Spending as Percent of GDP: 10.9%
Japan prioritizes healthcare exceeding the OECD average. With abundant medical resources, including 2.6 doctors, 12.1 nurses, and 12.6 hospital beds per 1,000 population, Japan surpasses OECD standards. It boasts a low mortality rate from heart disease at 29.4 deaths per 100,000 population. Healthcare covers the entire population, with 85% of spending covered by mandatory prepayment and lower out-of-pocket expenses than the OECD average. Japan’s high life expectancy of 84.5 years and lower preventable mortality highlight its effective healthcare system.
11. Belgium
Health Spending as Percent of GDP: 11.06%
Belgium invests significantly in healthcare, with public expenditure funded by government schemes and compulsory insurance covering around 43.07%. Despite this, many households face financial strain due to out-of-pocket payments, with nearly 260,000 experiencing hardship in 2020. The government is working to reduce these payments, especially for low-income individuals. Belgium’s health expenditure as a percentage of GDP has been consistently high since 1980, reflecting its commitment to healthcare.
10. Maldives
Health Spending as Percent of GDP: 11.35%
The Maldives prioritizes healthcare spending, with low mortality rates and significant investment in healthcare infrastructure. In 2020, it allocated 11.35% of its GDP to health expenses, with a healthcare spending per capita of $800. The country’s population was around 514,438 in 2020, and it falls under the upper-middle-income category according to the World Bank. The focus remains on maintaining a robust healthcare system to cater to diverse health needs.
9. Micronesia
Health Spending as Percent of GDP: 11.56%
Micronesia had a GDP per capita of $3,571.34 in 2021 with healthcare expenditure reaching 11.56% of GDP. Neonatal mortality stands at 24.9 deaths per 1,000 live births, and under-five mortality at 115,224 persons. The country prioritizes child health indicators like care-seeking for acute respiratory infections and diarrhea treatment. Progress is evident in maternal and newborn health, with 100% of deliveries attended by skilled personnel and high postnatal care rates. Micronesia has also made strides in sanitation and drinking water services, ensuring a significant portion of the population has access to basic facilities.
8. Kiribati
Health Spending as Percent of GDP: 11.64%
Kiribati, with a population of 126,463 in 2020, had a GDP per capita of US$1,606 in 2021, with health expenditure comprising 11.64% of GDP, making Kiribati stand eighth among the countries that spend the most on healthcare. Despite challenges in death registration data quality, the under-five mortality rate stands at 48.2 deaths per 1,000 live births. Monitoring death rates by cause, age, and sex is crucial for health trend analysis, although accuracy is hampered by data quality issues.
7. Lesotho
Health Spending as Percent of GDP: 11.78%
Lesotho has invested in healthcare, prioritizing it in public expenditure, but faces challenges in health workforce development and deployment, with a density of 20.72 doctors, nurses, and midwives per 10,000 population in 2020, below the WHO threshold. Health outcomes are poor, with high HIV/AIDS prevalence, low life expectancy (54 years), and malnutrition. Donor funding, primarily grants, significantly finance the health sector, with support from partners like UNICEF and the World Bank. Initiatives such as “Test and Treat” for HIV/AIDS and performance-based financing have improved healthcare utilization and key health indicators over time.
6. Switzerland
Health Spending as Percent of GDP: 11.8%
Switzerland stands sixth among the top countries that spend the most on healthcare, spending $7,179 per capita, 11.8% of GDP, higher than the OECD average. With 4.4 hospital beds per 1,000 population and abundant medical staff, Switzerland excels in health indicators, boasting lower obesity rates and preventable mortality. Its universal healthcare system mandates private health insurance for residents, covering most medical services with patient cost-sharing. Public financing contributes 62.8% of health spending, with a mix of public and private funding.
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Disclosure. None: The 20 Countries That Spend the Most on Healthcare is originally published on Insider Monkey.