Total spending on healthcare is rising faster than economic growth In all OECD countries, pushing the average ratio of health spending to GDP from 7.8% in 2000 to 9.0% in 2008.
Given the urgent need to reduce their budget deficits, many OECD governments will have to make difficult choices to sustain their healthcare systems, including curb the growth of public spending on health, cut spending in other areas, or raise taxes.
New Data published by the OECD reveals the factors pushing health spending up - technological change, population expectations and population ageing - will continue to drive cost higher in the future.
In some countries the recent economic downturn, with GDP falling and healthcare costs rising, led to a sharp increase in the ratio of health spending to GDP. In Ireland, the percentage of GDP devoted to health increased from 7.5% in 2007 to 8.7% in 2008. In Spain, it rose from 8.4% to 9.0%.
Governments of most OECD countries shoulder the lion's share of healthcare costs. The share of government expenditure devoted to health increased in most countries, rising from an average of 12% in 1990 to an all-time high of 16% in 2008.
From Bubb's Blog
From Whitehall Watch
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