Global Healthcare Expenditure in 8 Graphs

healthcare expenditure Igea Luca Dezzani

 

Healthcare expenditure is the sum of all expenses for products and services related to healthcare in a nation. It includes expenses for drugs, therapeutic procedures, emergency health services, and public service initiatives like family planning, disease prevention, and nutrition. The figure includes all public and private healthcare expenditures in the nation. The major sources for these expenditures are medical insurance, welfare services, and out-of-pocket expenses.

Healthcare expenditure is an important indicator of the development status of a nation. It informs important decisions related to policy, aid, and investment. Furthermore, the size, growth rate, and nature of healthcare spending in a nation is a critical driver for industries like pharmaceuticals, insurance, and medical care.

An analysis of the top-50 nations with the highest healthcare expenditures reveals a huge disparity in the distribution of healthcare spending in the world. In 2014, these top-50 nations were home to 75% of the global population, but accounted for over 96% of the global healthcare expenditure. The top-20 nations had 56% of the population, but 87% of the healthcare expenditure; while the top-10 nations with just 32% of the population accounted for 75% of the global healthcare expenditure. In fact, U.S., which accounted for just 4% of the global population, alone accounted for 39% of all the healthcare expenditure in the world in 2014.

However, the situation is improving. Between 2005 and 2014, the global population increased an annual rate of 1.21%. In the same period, healthcare spending in the world increased at an annual rate of 5.88%. Rapid increase in healthcare spending is dramatically improving access to healthcare worldwide. In fact, China and India, which together account for over a third of the global population, had two of the highest growth rates for healthcare expenditures in the world.

The raw data for healthcare spending, public sector contribution to healthcare, and out-of-pocket expenses, of these 50 nations for all years between 2000 and 2014 can be downloaded here.

 

healthcare expenditure Igea Luca Dezzani

Source: World Bank.

The U.S. spends the highest amount for healthcare in the world. It was responsible for 39% of all healthcare expenditures in the world in 2014. In fact, in 2014, the healthcare expenditure in U.S. was larger than the combined healthcare expenditures of the 10 nations that follow it!

 

healthcare expenditure Igea Luca Dezzani

Source: World Bank.

However, in terms of 10-year growth rate, China emerges at the top the list. Healthcare expenditure in China grew at a compound annual growth rate (CAGR) of 20.67% between 2005 and 2014. Other nations at the top of this list are three of its four BRICS peers.

 

healthcare expenditure Igea Luca Dezzani

Source: World Bank.

Healthcare expenditures in the U.S. is highly inflated. The average annual per capita healthcare expenditure in the U.S. was USD 9,402.54 – over 9 times higher than the global average of USD 1,060.57.

 

healthcare expenditure Igea Luca Dezzani

Source: World Bank.

And the highest increase is, again, for four of the five BRICS nations.

 

healthcare expenditure Igea Luca Dezzani

Source: World Bank.

Public contribution to healthcare expenditure is an important component of welfare services. This list is dominated by European nations with a long tradition of universal healthcare.

 

healthcare expenditure Igea Luca Dezzani

Source: World Bank.

China is stepping up its game in this field. The growth rate in U.S. too is close to three times the global average.

healthcare expenditure Igea Luca Dezzani

 

Source: World Bank.

Out-of-pocket healthcare expenditures are direct payments by individual patients for drugs and medical services. High out-of-pocket expenditures are not great. They are an indication of inefficient and inadequate healthcare support. India toped this list in 2014 with a large margin. 62.42% of all healthcare expenditure in India in through out-of-pocket expenses – substantially higher than the global average of 18.30%.

 

healthcare expenditure Igea Luca Dezzani

Source: World Bank.

The growth of the proportion of out-of-pocket healthcare expenditures across the world has stagnated, growing at an annual rate of just 0.15% between 2005 and 2014. In fact, it’s rapidly dropping in most nation, as access to organized healthcare and medical insurance improves, and decrease the need for out-of-pocket expenditure.

 

Picture3

Source: World Bank.

 

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