International Comparison of International Comparison of Health CareHealth Care

Gene ChangGene Chang

Life Expectancy (2009est)Life Expectancy (2009est)

Source: CIA World Facebook 2009 estimates

Life Expectancy (2004)Life Expectancy (2004)

Comparison among OCED countries

30 OCED countries, include:Japan, Switzerland, Iceland, Italy, Australia,

Sweden, Spain, Canada, Norway, France, New Zealand, Austria, Ireland, Luxembourg, Germany, Netherlands, Greece, Belgium, Finland, United Kingdom, Korea, Denmark, Portugal, United States, Czech Republic, Poland, Mexico, Slovak Republic, Hungary, Turkey

Do we spend too little?

Total expenditure % of GDP

U.S. 16% highest

Total expenditure on health, /capita, US$ PPP

$7290, more than double the average of OECD countries

Is that too much health money spent by the government?

Public expenditure on health, % total expenditure on health

U.S. is at the bottom at 45%, while other countries average 80%.

Is that we spend too much money on pharmaceuticals for

drug R and D?

Total expenditure on pharmaceuticals and other medical non-durables, % total expenditure on health

The U.S. spends 12% as compare other OECD countries’ average of 20%

The amount of the advanced, expensive equipment --- the proud

of the U.S. health care?MRI Unit, per million population

The U.S. has most, 25.9 units as compared with other OECD’s average of 10 units

Utilization of the MRI units:

Below average

Life Expectancy, rankingLife Expectancy, ranking

The U.S. is among the bottom. Ranking:

Japan, Switzerland, Iceland, Italy, Australia, Sweden, Spain, Canada, Norway, France, New Zealand, Austria, Ireland, Luxembourg, Germany, Netherlands, Greece, Belgium, Finland, United Kingdom, Korea, Denmark, Portugal, United States, Czech Republic, Poland, Mexico, Slovak Republic, Hungary, Turkey

Infant mortalityThe U.S. is among the highest, ranking:Iceland, Sweden, Luxembourg, Japan, Finland, Norway, Czech Republic, Portugal, Belgium, Greece, Italy, France, Spain, Germany, Ireland, Austria, Switzerland, Denmark, Korea, Netherlands, Australia, New Zealand, United Kingdom, Canada, Hungary, Poland, United States, Slovak Republic, Mexico, Turkey

Why market fails in the U.S. health care system?

The U.S. has most privatized health care system and relies more on the private sectors than other OECD countries, but is the least efficient to use money to generate results.

Possible answers

Health care is a public good.Asymmetric information between the sellers and buyers exists in the health care service.Lack regulation, similar to the problems in the financial market.Therefore, more money is spent on the less effective way, concentrating on expensive technology while ignore the basic, universal health care for the population.