2018 Willis Towers Watson Best Practices in Health Care Survey

Healthcare takes more than 10% of the GDP of most developed countries. In fact, for the US this figure will be close to 18% by the end of 2019. This isn't surprising—the healthcare sector is the US's largest employer. Incidentally, the US spends considerably more than the world's average on healthcare.

As we can see, recent healthcare statistics show that it's one of thelargest and fastest-growing industries in the world.

So which other countries spend a fortune on health? And just exactly how much is the global health industry worth? What does its future look like?

Read on to find out the answers to these questions and much more.

Must-Know Healthcare Statistics in 2021

The global health industry was worth $8.45 trillion in 2018.
Global healthcare spending could reach over $10 trillion by 2022.
The US has the greatest healthcare spending, sitting at $10,224 per capita.
The US spends twice what other countries do on healthcare.
There are 784,626 companies in the US healthcare sector.
McKesson is the biggest US healthcare company with an annual revenue of $208.3 billion.
The internet of things (IoT) can lower the costs of operational and clinical inefficiencies by $100 billion per year.
64% of physicians believe the IoT can help reduce the burden on nurses and doctors.
28% of China's population uses connected health devices, the highest in the world.

Health Insurance Industry (Infographic)

United States Healthcare Statistics

Have you ever wondered about the state of the US healthcare system?

Often people speak about it in a negative context, but how much of it is based on facts, and how much is a gross exaggeration?

Well, here are some recent statistics that show the true picture.

1. The average healthcare employee earns $60,976 a year in the US.

Healthcare is the largest source of work in the country, employing one in every eight citizens in the USA, health statistics show. The health industry pays well above the national average, which might be one of the main reasons so many people want to be a part of it. The average employee in this sector earns $60,976 a year, compared to the national average of $47,060.

2. The US's national health expenditure will touch $3.65 trillion in 2019.

The US currently ranks highest in overall healthcare expenditure in the world. According to the latest healthcare in the USA facts and reports, its total spending in 2019 will be $3.65 trillion, which equates to 17.8% of its GDP.

3. Hawaii is the top state for healthcare in the US.

When it comes to living a long life, Hawaii is the place to be. In addition to the beautiful beaches, pleasant weather, and friendly people, the state has the best healthcare in the country.

4. Healthcare costs are 2 times higher in the US than in other countries.

The US spends double what the rest of the world does on healthcare, largely because of its higher costs for treatments and procedures.

Important US Healthcare Industry Facts and Statistics

5. The US boasts the biggest health industry, consisting of 784,626 companies.

Patient care accounts for $1.068 trillion or 64% of the US's healthcare revenue. Meanwhile, inpatient care, which includes skilled nursing rehabilitation and non-surgical dental interventions, makes up 4.49% and 2.98%, respectively.

6. According to the latest healthcare industry stats, McKesson is the largest healthcare company in the country by revenue.

With annual revenue of $208.3 billion, it's comfortably ahead of its nearest competitor, UnitedHealth Group, sitting at $201 billion. Other names on the list include CVSHealth ($184.7 billion), AmerisourceBergen ($153.1 billion), and CardinalHealth ($129.9 billion).

7. It's estimated that in 2023 the nation's spending on health will add up to $4.3 trillion.

When it comes to healthcare spending, the US tops the list, spending 17.8% of the country's GDP. And this likely won't be changing anytime soon.

Universal Healthcare Stats

The old saying "What goes up must come down" doesn't seem to apply to the global health industry. Research shows that world citizens spend more on healthcare every year.

Why is this so? And which countries spend the most on health per person?

Let's find out the answers.

8. The US spends the most on health per person, followed by Switzerland and Germany.

Relative to the size of its wealth, the US spends a disproportionate amount of money on health every year, according to the latest health stats. While the US's healthcare consumption expenditure per capita is $10,224, Switzerland and Germany spend $8,009 and $5,728 per capita, respectively. Other top spenders on health are Sweden ($5,511) and Austria ($5,440).

9. Global healthcare spending will cross the $10 trillion mark by 2022.

Research shows that the healthcare sector will reach $10.059 trillion by 2022. Aging and growing populations, higher rates of chronic health conditions, and exponential but costly advances in digital technologies will continue to push global healthcare expenditures upward.

Health Industry Growth

The global health industry is growing at an impressive rate, according to the recent healthcare industry statistics.

10. In 2018, this sector was worth $8.45 trillion, with an annual growth rate of 7.3% since 2014.

It's expected that the healthcare industry will continue to grow. In the US alone, the market size will increase by $808 billion by 2021, according to the latest estimates. The thriving health insurance industry and rising healthcare expenses are the key contributing factors.

Health Care Industry Outlook

The Future Of the Healthcare Industry

The survey shows that 98% of pharmaceutical and life science executives expect digital investment in clinical trials to increase in the coming years.

Around 75% of healthcare facilities such as clinics and hospitals were found to be unprepared when it came to responding to cyber-attacks, which is another area that will need improvement in the future.

Currently, nearly 96% felt that attacks on healthcare software and infrastructure have increased and have placed healthcare facilities at risk.

Healthcare Outlook

The coronavirus pandemic has laid bare the healthcare system, with revenues tumbling by around 50% in the United States alone. About 2/3 issuers currently rated by Fitch currently have a stable outlook, 17% a negative outlook, and 10% a positive outlook. According to DataBridge Market Research, the health insurance market is growing at a CAGR of 4.4% and is expected to reach $2,259,670.09 million by 2027.

Healthcare Global

92% of providers of various healthcare solutions are promoting the use of digitization for healthcare facilities. This makes it a good time to invest in digital healthcare trends. Experts predict a massive acceleration of digital technology in healthcare, which includes cloud computing, data security, and other tools.

Life and health insurance premiums will rise to 2.9% to around $4 trillion but will recover to around 3% growth by the start of next year. A heightened sense of health risk awareness and financial market conditions that are normalizing will drive the rebound.

Medical Markets

94% of hospitals in the US are in the process of adoption of EHRs. This new initiative will save doctors from the time-consuming process of dealing with paperwork. Furthermore, EHR will be beneficial for intervention since it offers customized reminders for patients in need of medical care.

The health insurance market is developing at a high speed. Protection-type insurance products will prove to be more resilient as compared to savings businesses, which suffer during down runs, especially in a COVID-19 hit economy.

This industry is on the cusp of a technological revolution thanks to the internet of things (IoT). In the coming years, the IoT will change health care as we know it by revolutionizing the following aspects of health care:

Training – Advanced healthcare training simulators will mimic patient symptoms and give real-time feedback, making it easier to remotely train new medical professionals.
Patient Monitoring – The IoT will take remote patient monitoring to a whole new level. Connected medical devices will be able to send data to physicians and receive their responses in real-time. This in turn will pave the way for faster interventions, which will help save lives. Considering these benefits, it's no wonder the healthcare statistics reveal that 74% of patients think IoT devices can help doctors treat them more effectively.
Preventive Care – IoT devices will not only proactively monitor your vital signs but also tell you when you need to see a doctor.
Workflow Optimization – These devices will make the life of medical professionals easier, and increase their productivity and earnings by streamlining workflow, a sentiment echoed by no fewer than 64% of doctors in a survey.

Conclusion

The world health industry is one of the biggest industries catering to the medical needs of billions of people across the globe. It has been growing consistently and its future looks promising, with the IoT all set to revolutionize healthcare for good.

FAQs

Who has the best healthcare system in the world?

These are the top 10 countries with the best healthcare in the world.

Canada
Qatar
France
Norway
New Zealand
Germany
Hong Kong
The Netherlands
Switzerland
Singapore

A quality, well-developed healthcare system is an absolute must. It allows citizens to receive treatment for diseases, illnesses, and injuries, as well as prevent them. If the healthcare system isn't up to the mark, people might not be able to receive or afford their required treatment. This will ultimately affect a person's quality of life and lifespan.

Health statistics show people who live in countries with a below-par healthcare system typically have poorer overall health and a shorter lifespan in comparison to those living in countries with a well-developed healthcare system. That said, the quality of healthcare is not directly proportional to the money spent on it.

For instance, statistics on healthcare reveal that the US has the highest infant mortality rate and the lowest life expectancy among other high-income nations, yet it spends twice as much on healthcare per person. Americans spend more on healthcare, not because they use medical devices more, but rather because of the high cost of medical treatment.

What percentage of people have access to healthcare?

According to a UN-backed report, 3.5 billion people—accounting for more than half of the world's population—don't have access to basic health services. No less worrying, out-of-pocket healthcare expenditures force 100 million people to survive on $1.90 or less a day.

At present, 800 million people spend 10% of their monthly budget or more on healthcare expenses. For nearly 100 million of this group, their healthcare expenditures are high enough to push them into severe poverty.

How many people cannot afford healthcare in the world?

Health is a fundamental right, according to the World Health Organization (WHO). This basically means that every person should have access to the required health services without suffering financial hardship.

However, the situation on the ground is starkly different. It's particularly bad in poor African countries, but the statistics in healthcare show that all is not fine in developing countries as well. For instance, according to a news report, 20% of Americans don't have the means to access needed health care. Overall, research shows more than half of the world can't access or afford the healthcare they need.

How much money is in the healthcare industry?

In 2018, the global healthcare sector'srevenue was $1.853 trillion, an increase of 4.5% on a year-on-year basis.

When it comes to healthcare expenditures, the US tops the list, spending $10,224 per person. By the end of 2019, Americans will spend $3.65 trillion on health, which amounts to 17.8% of the country's GDP. Other top spenders on health include Switzerland, Germany, Sweden, and Austria.

Global healthcare expenditures will rise at a yearly rate of 5.4% between 2017 and 2022, according to the latest healthcare statistics.

The two biggest driving factors are an aging population and a higher prevalence of chronic diseases. Worldwide, the average life expectancy is expected to rise from 73 years to 74.1 years between 2016 and 2021. Based on this estimate, 11.5% of the world population will be over 65 years of age by 2021. Additionally, due to the increased consumption of processed foods, chronic health conditions like diabetes are expected to become more common.

These two factors, many experts think, will continue to push both greater demand and greater expenditures in the healthcare industry.

2018 Willis Towers Watson Best Practices in Health Care Survey

Source: https://policyadvice.net/insurance/insights/healthcare-statistics/