Israel's expenditure on health services

Area of Science:

• Health Economics
• Healthcare Management
• Comparative Health Systems

Background:

• In 1986, Israel's healthcare expenditure was 7.6% of its Gross National Product (GNP).
• Despite this percentage, per capita healthcare spending was lower than in eight comparable industrialized nations.
• This study examines factors contributing to Israel's lower per capita health expenditure.

Purpose of the Study:

• To analyze the reasons behind Israel's lower per capita healthcare spending compared to other industrialized nations.
• To evaluate the impact of Gross National Product (GNP) per capita and health personnel wage differentials on healthcare expenditure.
• To assess the efficiency and productivity of the Israeli health system.

Main Methods:

• Comparative analysis of healthcare expenditure in Israel versus eight industrialized non-communist nations.
• Investigation of health personnel and bed supply levels.
• Analysis of operations and procedure rates.
• Examination of relative wage costs for health personnel.

Main Results:

• Israel's low per capita healthcare spending is attributed to lower GNP per capita and lower relative wages for health personnel.
• If Israel matched US per capita GNP, healthcare spending would rise from $472 to $1,328 per capita.
• Adjusting for US wage differentials would increase spending to an estimated $1,842 per capita (10.7% of GNP).
• The Israeli health system shows adequate manpower, high bed occupancy, lower surgery rates, and low relative wages.

Conclusions:

• Low absolute health expenditures in Israel stem from low GNP per capita and narrow wage differentials for health staff.
• Productivity in Israel's health services could potentially be increased.
• Adjusting for economic and wage factors reveals a different perspective on Israeli healthcare system efficiency compared to initial expenditure figures.