How Does the U.S. Healthcare System Compare to Other Countries? (2024)

How Does the U.S. Healthcare System Compare to Other Countries? (1)

The cost and quality of the U.S. healthcare system is one of the most prominent issues facing everyday Americans. It is a top policy concern for voters, a key indicator of economic efficiency, and a significant driver of the national debt. The recent release of the Organisation for Economic Co-operation and Development’s (OECD) 2022 Health Statistics — a comprehensive source of comparable statistics on healthcare systems across OECD member countries — provides policymakers and the public with some insight on how America’s healthcare system compares to others.

The United States Spends More on Healthcare per Person than Other Wealthy Countries

The amount of resources a country allocates for healthcare varies as each country has its own political, economic, and social attributes that help determine how much it will spend. Generally, wealthier countries — such as the United States — will spend more on healthcare than countries that are less affluent. As such, it helps to compare healthcare spending in the United States to spending in other comparatively wealthy countries — those with gross domestic product (GDP) and per capita GDP above the median, relative to all OECD countries.

In 2021, the United States spent an estimated $12,318 per person on healthcare — the highest healthcare costs per capita across the OECD countries. For comparison, Germany was the second highest-spending country with about $7,383 in healthcare costs per capita, while the average for wealthy OECD countries, excluding the United States, was only $5,829 per person. Such comparisons indicate that the United States spends a disproportionate amount on healthcare.

How Does the U.S. Healthcare System Compare to Other Countries? (2)

Why Is the United States Spending More on Healthcare?

Healthcare spending is driven by utilization (the number of services used) and price (the amount charged per service). An increase in either of those factors can result in higher healthcare costs. Despite spending nearly twice as much on healthcare per capita, utilization rates in the United States do not differ significantly from other wealthy OECD countries. Prices, therefore, appear to be the main driver of the cost difference between the United States and other wealthy countries. In fact, prices in the United States tend to be higher regardless of utilization rates. For example, the Peterson-Kaiser Health System Tracker notes that the United States has shorter hospital stays, fewer angioplasty surgeries, and more knee replacements than comparable countries, yet the prices for each are higher in the United States.

There are many possible factors for why healthcare prices in the United States are higher than other countries, ranging from the consolidation of hospitals — leading to a lack of competition — to the inefficiencies and administrative waste that derive from the complexity of the U.S. healthcare system. In fact, the United States spends over $1,000 per person on administrative costs —five times more than the average of other wealthy countries and more than we spend on preventive or long-term healthcare.

How Does the U.S. Healthcare System Compare to Other Countries? (3)

Does this Higher Spending Lead to Better Outcomes?

Higher healthcare spending can be beneficial if it results in better health outcomes. However, despite higher healthcare spending, America’s health outcomes are not any better than those in other developed countries. The United States actually performs worse in some common health metrics like life expectancy, infant mortality, and unmanaged diabetes.

How Does the U.S. Healthcare System Compare to Other Countries? (4)

A healthcare system with high costs and poor outcomes undermines our economy and threatens our long-term fiscal and economic well-being. Fortunately, there are opportunities to transform our healthcare system into one that produces higher quality care at a lower cost. For more information on potential reforms, visit our solutions page and the Peterson Center on Healthcare.

Related: Healthcare Costs for Americans Projected to Grow at an Alarmingly High Rate

Image credit: Photo by George Frey/Getty Images

How Does the U.S. Healthcare System Compare to Other Countries? (2024)

FAQs

How Does the U.S. Healthcare System Compare to Other Countries? ›

Despite high U.S. spending, Americans experience worse health outcomes than their peers around world. For example, life expectancy at birth in the U.S. was 77 years in 2020 — three years lower than the OECD average. Provisional data shows life expectancy in the U.S. dropped even further in 2021.

How does US healthcare compare to other countries? ›

Despite high U.S. spending, Americans experience worse health outcomes than their peers around world. For example, life expectancy at birth in the U.S. was 77 years in 2020 — three years lower than the OECD average. Provisional data shows life expectancy in the U.S. dropped even further in 2021.

Does the U.S. spend more on health care than any other country in the world? ›

The United States spends more on health care than any other high-income country but still has the lowest life expectancy at birth and the highest rate of people with multiple chronic diseases, according to a new report from The Commonwealth Fund, an independent research group.

Does the United States have the best healthcare in the world? ›

Roughly six-in-ten say health care in this country is average (32%) or below average (29%) compared with other industrialized countries. Conservative Republicans stand out in their positive assessments of U.S. health care. Two-thirds (66%) say America's health care is either the best in the world or above average.

Why is healthcare in the U.S. higher than other countries? ›

There are many possible factors for why healthcare prices in the United States are higher than other countries, ranging from the consolidation of hospitals — leading to a lack of competition — to the inefficiencies and administrative waste that derive from the complexity of the U.S. healthcare system.

Where does US health care rank in the world? ›

Despite having the most expensive health care system, the United States ranks last overall compared with six other industrialized countries—Australia, Canada, Germany, the Netherlands, New Zealand, and the United Kingdom—on measures of quality, efficiency, access to care, equity, and the ability to lead long, healthy, ...

Where does US rank in healthcare quality? ›

The United States ranks last overall, despite spending far more of its gross domestic product on health care. The U.S. ranks last on access to care, administrative efficiency, equity, and health care outcomes, but second on measures of care process.

Which country has best healthcare system? ›

Countries Ranked by Healthcare
#CountryHealth Score
1Belgium80.6
2Japan86.6
3Sweden82.1
4Switzerland81.5
105 more rows

Why the United States has the best healthcare in the world? ›

At a fundamental level, greater financial compensation also provides individuals and their families the potential for a better quality of life, while greater autonomy spurs innovation. This is why the United States is routinely listed as one of the best countries in the world to practice medicine.

Why is US healthcare so expensive? ›

There are many possible reasons for that increase in healthcare prices: The introduction of new, innovative healthcare technology can lead to better, more expensive procedures and products. The complexity of the U.S. healthcare system can lead to administrative waste in the insurance and provider payment systems.

What country is #1 in healthcare? ›

1- Denmark

The Danish universal health care system provides Danes with mostly free medical care and is predominantly financed through income tax. All permanent residents are entitled to a national health insurance card, and most examinations and treatments are free of charge.

What are the pros of the US healthcare system? ›

  • Most preemptive cancer screening. ...
  • Highest rate of cancer survival. ...
  • Best treatment of chronic disease. ...
  • Most identification and treatment of psychological disease. ...
  • Most advanced equipment per capita. ...
  • Highest pay attracts the best doctors. ...
  • Most advanced research. ...
  • If you have the money, US health care is nonpareil.
Mar 10, 2010

Does America have the most advanced healthcare? ›

The US, Switzerland and Norway are some of the most advanced countries when it comes to the field of medicine, with huge healthcare spending, numerous pharmaceutical companies and sophisticated academia.

Why is US healthcare unique? ›

The U.S. health care system is unique among advanced industrialized countries. The U.S. does not have a uniform health system, has no universal health care coverage, and only recently enacted legislation mandating healthcare coverage for almost everyone.

Does America have the best doctors? ›

Even though it is widely assumed that the best doctors in the world are in the United States, there are plenty of other countries that have great doctors as well. For example, Japan and South Korea are known for having strong medical systems.

Does the United States have some of the best healthcare technology compared to other countries? ›

The answer to the question, “what country leads the world in medical innovation?” is the United States. Medical industry professionals all over the world would have to agree that the top medical technology currently being used around the world has ties to the U.S.

What countries have better healthcare than the US? ›

Countries With the Most Well-Developed Public Health Systems
  • Denmark.
  • Germany.
  • Sweden.
  • Norway.
  • Canada.
  • Switzerland.
  • United Kingdom.
  • Netherlands.
Sep 27, 2022

Is European healthcare better than us? ›

Compared to European countries such as Sweden, the United Kingdom, and France, the U.S. has the highest rate of medical, medication, and lab errors; and 16% of patients in the U.S. visited the ER for a non-emergency issue in 2017, compared to only 5% in Germany and 9% in Switzerland.

Is the US a leader in healthcare? ›

The United States ranks 4th in the World Index of Healthcare Innovation, with an overall score of 54.96, behind only Switzerland, Germany, and the Netherlands.

How quality is American healthcare? ›

The latest excellent/good rating for U.S. healthcare quality is just two percentage points lower than in 2021; however, it is well below the 62% high point twice recorded in the early 2010s. It also trails the average 55% reading since 2001. These findings are from Gallup's annual Health and Healthcare survey.

Is Canada's healthcare better than US? ›

The Canadian Healthcare System

Both countries are ranked relatively high in international surveys of healthcare quality according to the World Health Organization (WHO). Both countries are relatively wealthy compared to much of the world, with long life expectancy. But Canadian life expectancy is slightly higher.

Is US healthcare better than UK? ›

The NHS performs as well as or better than the US healthcare system on many objective indicators. Yet the United Kingdom shows greater interest in learning from the United States than vice versa.

What country has the lowest rated healthcare? ›

Sierra Leone has the dubious distinction of being the worst country in providing healthcare to its citizens, with a score of 0.00 on the WHO health systems performance index. It is an African coastal country bordered by Guinea and Liberia, and has a population of almost 6 million.

What country has the fastest healthcare? ›

best healthcare in the world 2023: complete rankings
RankCountryScore
1Japan86.6
2Singapore86.1
3South Korea84.1
4Norway84.0
46 more rows
Jan 9, 2023

Which country has best free healthcare? ›

Countries with universal health care
  • Singapore, 1993.
  • Slovenia, 1972.
  • South Korea, 1988.
  • Spain, 1986.
  • Sweden, 1955.
  • Switzerland, 1994.
  • The United Arab Emirates, 1971.
  • The United Kingdom, 1948.

How unhealthy is America compared to other countries? ›

Many people find it hard to believe the U.S. performs poorly on most measures of health compared to other high-income countries. But the truth is, study after study supports the same two conclusions: The U.S. spends more on health care but has worse health outcomes than comparable countries around the globe.

What happens if you can't afford healthcare in America? ›

Medical debt

In a worst-case scenario, you could be sued and have your wages garnished. You might even be forced into bankruptcy. The JAMA study also says that medical debt leads to people not getting needed health care and may result in worse mental health. Offers plans in all 50 states and Washington, D.C.

Who pays for health care in the US? ›

Federal taxes fund public insurance programs, such as Medicare, Medicaid, CHIP, and military health insurance programs (Veteran's Health Administration, TRICARE).

Why is healthcare cheaper outside the US? ›

Taxes are lower. Food costs less. And salaries are lower. Foreign doctors often make a sixth of the salary of their U.S. counterparts.

What country is healthcare free? ›

However, Brazil is the only country in the world that offers free healthcare for all its citizens. Also, Norway is the first country in the world to implement a free healthcare policy as far back as 1912. Coincidentally, Norway is recognized as one of the healthiest countries in the world.

What is the best country for living? ›

Our round-up of the best countries to live in the world in 2023
  • 1/ Switzerland.
  • 2/ Canada.
  • 3/ Norway.
  • 4/ Singapore.
  • 5/ Australia.
  • 6/ Denmark.
  • 7/ Finland.
  • 8/ Austria.
Sep 1, 2021

What is the main problem with the U.S. health care system? ›

The High Cost of Health Care

The problem: Perhaps the most pressing issue in health care currently is the high cost of care. More than 45% of American adults say it's difficult to afford health care, according to a survey by the Kaiser Family Foundation, and more than 40% have medical debt.

What is one strength of the U.S. healthcare system? ›

It has a large and well-trained health workforce, a wide range of high-quality medical specialists as well as secondary and tertiary institutions, a robust health sector research program and, for selected services, among the best medical outcomes in the world.

What is the top health crisis in America? ›

Heart disease and stroke still the leading causes of death for both U.S. men and women.

What state has the best healthcare? ›

Hawaii is the top state for healthcare, according to U.S. News & World Report's annual best states rankings published May 2. The overall state ranking is based on 71 metrics across eight categories, including healthcare, education and economy.

Which country has the best healthcare system in the world? ›

South Korea tops the list of best healthcare systems in the world. It's been praised for being modern and efficient, with quality, well-equipped medical facilities and highly trained medical professionals. Generally, treatment in South Korea is affordable and readily available.

What is the most notable way that the U.S. health care system differs from the other industrialized countries included in the Commonwealth Fund Report? ›

The most notable way the U.S. differs from other industrialized countries is the absence of universal health insurance coverage. 5 Other nations ensure the accessibility of care through universal health systems and through better ties between patients and the physician practices that serve as their medical homes.

Which country has the most free healthcare? ›

Saudi Arabia. The Government of Saudi Arabia provides free universal health coverage for all citizens. Non-citizens are required by law to have private insurance paid for by their employer.

Who benefits from the U.S. healthcare system? ›

The federal government provides funding for the national Medicare program for adults age 65 and older and some people with disabilities as well as for various programs for veterans and low-income people, including Medicaid and the Children's Health Insurance Program.

Who has the worst healthcare in the world? ›

Mali. Health in Mali, one of the world's poorest nations, is greatly affected by poverty, malnutrition, and inadequate hygiene and sanitation. Mali's health and development indicators rank among the worst in the world.

How and why US health care differs from that in other OECD countries? ›

The OECD countries provide more physicians and more acute care hospital beds, whereas the United States provides much more high-tech services, such as magnetic resonance imaging (MRI) scans and mammograms, proportionately more specialists, more amenities (privacy and space in hospitals), and more standby capacity as ...

What are the strengths of the US healthcare system? ›

It has a large and well-trained health workforce, a wide range of high-quality medical specialists as well as secondary and tertiary institutions, a robust health sector research program and, for selected services, among the best medical outcomes in the world.

Does China have better healthcare than the US? ›

China still lags developed countries in terms of health outcomes. In 2016, average life expectancy in the United States was 2 years higher than it was in China.

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