Israel: Health System Review

Area of Science:

• Health Policy and Management
• Public Health
• Health Economics

Background:

• Israel has achieved universal health coverage through a statutory health insurance system since 1995.
• The system features four competing, non-profit health plans offering a government-defined benefits package.

Purpose of the Study:

• To analyze the efficiency and equity of the Israeli healthcare system.
• To identify factors contributing to its performance and ongoing reform efforts.

Main Methods:

• Analysis of healthcare spending as a proportion of GDP.
• Examination of factors influencing system efficiency, including competition, regulation, primary care, and electronic health records.
• Review of ongoing health reform initiatives and challenges.

Main Results:

• The Israeli healthcare system is efficient, with health status comparable to developed nations despite low GDP spending (under 8%).
• Key efficiency drivers include regulated competition, hospital bed controls, accessible primary care, and electronic health records.
• Reforms are expanding benefits (mental health, pediatric dental) and addressing inequalities, hospital quality, and workforce shortages.

Conclusions:

• Israel's healthcare system demonstrates efficiency and innovation, driven by specific structural and regulatory factors.
• A significant challenge is the increasing reliance on private financing, potentially impacting equity.
• Ongoing reforms aim to bolster public financing, enhance public system efficiency, and manage private sector growth.