Health Care Statistics

This will be less thorough and analytical as I had initially hoped. There is so much information out there that could be researched and analyzed. However, I have gathered some key statistics from the World Health Organization which I believe shed some light on the state of health care in the U.S.

We are going to explore some data revolving around two broad categories: health care spending and general health care data. In the first table below, we take a look at government expenditures on health care as a percentage of GDP. The eighteen countries represented include the largest countries in the world as measured by GDP as well as a select few others based on either high per capita GDP and/or the Human Development Index.

Source: WHO Statistical Information System

A few things jump out in this first set of data. The so-called "BRIC" countries of Brazil, Russia, India and China have substantially lower volumes of government spending as compared to the other countries. The BRIC countries aside, the other countries range from 5.8% to 8.8% with a mean of about 7.0%. The U.S. is right in the middle at 7.0%. Incidentally, this places the U.S. at number two (behind Norway) in terms of per capita government spending on health care.

In this second table, we look at private (non-government) spending on health care as a percentage of GDP. This table tells a much different story with the U.S. leading the way at 8.3% and no other country coming even close. It does not take a view of the data to quickly recognize that the U.S. spends far more on health care than any other country in the world. We rank number one in per capita spending, spending as a percent of GDP, and, of course, in total nominal spending.

Source: WHO Statistical Information System

The key difference in the health care infrastructure between the U.S. and the other countries presented (the BRICs excluded) is that while the U.S. government appears to spend an ample amount on health care, there is also more than double the expense coming out of the private sector. This expense would only seem justified if there is either a structural need for higher health care expenses and/or the health care services are much better in the U.S.

This third table looks at some key health indicators for the same countries as above with the exclusion of the BRICs. As you can see, the U.S. has the highest adult mortality rate, mortality rate due to non-communicable diseases, and obesity rate. Our obesity rate is truly off the charts. The U.S. is below average in alcohol consumption and tobacco use. The obesity rate is the only factor of these which may suggest there is a systemic need for higher health care expenditures in the U.S. However, one may argue that the high obesity rate is an indicator of a problem with the system in general.

Source: WHO Statistical Information System; data definitions available upon request.

In the next table, we look at the number of hospital beds and physicians per 10,000 residents as a proxy of the level of service. This is clearly not the only way to measure service, but it does provide a reasonable snapshot of whether or not the higher spending in the U.S. actually results in more bed or physicians. It does not.

Source: WHO Statistical Information System

Health care outcomes are difficult to measure. Life expectancy at birth is lower in the U.S. when compared to the other top countries. If you consider the obesity problem a symptom of poor outcomes (or poor prevention) rather than some sort of disease or epidemic, than that would also point to a less effective system in the U.S. Infant and neonatal mortality rates are higher in the U.S., but so is the adolescent fertility rate which may explain the disparity.

All in all, it would appear that the public/private mix in the U.S. does not appear to provide the level of service or outcomes which would warrant the higher expenses that we have here. Reform is needed in this country as much of the inefficiency, in my opinion, is the result of regulation and legislation.