The International Federation of Health Plans (iFHP) has published its 2024 International Healthcare Cost Comparison Report, marking its latest biennial analysis of global healthcare costs. Compiled in collaboration with the Health Care Cost Institute (HCCI), the report compares costs for inpatient and outpatient treatments, as well as prescription drugs, across nine countries using data from 2022.
“This year’s report highlights how dramatically healthcare system design influences affordability,” said Chris Watney, chief executive of iFHP. “The fact that a coronary bypass surgery costs over eight times more in the U.S. than in Spain underscores the need for global collaboration to share best practices and create sustainable solutions for healthcare financing.”
“The 2024 International Healthcare Cost Comparison Report provides unique insights into the prices paid by commercial insurers for healthcare services,” said John Hargraves, Director of Data Strategy at HCCI. “Patients in the U.S. consistently face higher costs for the same services compared to other countries with no evidence that higher costs are improving health.”
The 2024 report builds on the findings from 2022, offering a clearer picture of the global healthcare landscape as systems recover from pandemic disruptions.
Hospital Admissions
The survey compares the median cost of 12 common inpatient procedures in 9 countries. The cost of inpatient treatments varies significantly across countries due to differences in healthcare system structures, reimbursement models, and resource allocation. Figure 1 shows the prices paid for inpatient hospital admissions in each country as a percent of the U.S. price.
Key Findings:
- The U.S. stands out with consistently higher costs for nearly all inpatient procedures
- Lower costs were found in Europe, Australia, and New Zealand
- Greece, with its limited healthcare budget, leverages a cost-efficient approach by focusing on essential services and minimising the use of high-cost diagnostics like MRI scans, except in critical cases
Outpatient/Office Procedures
The survey compared the median cost of 13 outpatient treatments in 2022 across nine countries worldwide. The treatments were chosen for the relative cumulative cost they represent as a proportion of the overall treatment costs expensed by private health insurance companies. Figure 2 shows the prices paid for outpatient/office procedures in each country as a percent of the U.S. price.
Key Findings:
- Outpatient Centres In countries like the UK and Australia, the shift toward using an outpatient setting for procedures like cataract surgeries and colonoscopies has brought down costs, as these centres have lower overheads than traditional hospitals.
- New Zealand has successfully managed to reduce the burden on hospitals, enabling outpatient facilities to handle routine procedures and preventive health screenings.
- Germany and the United States incur high costs for PET scans due to their emphasis on high-quality technology, comprehensive diagnostic capabilities, and the financial structures within their respective healthcare systems.
- The rise of telehealth services has reduced the need for in person outpatient visits in many countries.
Prescription and Administered Drugs
The survey compared the cost of 11 drugs across 5 countries. The drugs were chosen for the relative cumulative cost they represent as a proportion of the overall drug expenditure to private health funds. Prices represent the median cost per drug for the most commonly prescribed dosage and units. Figure 3 shows the prices paid for prescription and administered drugs in each country as a percent of the U.S. price.
Key Findings:
- The United States consistently exhibits the highest prices for prescription drugs, particularly branded medications.
- Nations such as Canada, Australia, and most of Europe experience significantly lower prescription drug prices due to single-payer systems and centralized negotiations between the government and pharmaceutical companies.
- In the UK, the widespread availability of generics has led to a substantial decrease in pharmaceutical spending, providing patients with lower-cost alternatives to branded medications.