Health expenditure reaches record high

287 billion euros in health expenditure in 2010

05/04/2012

Health expenditure reached its previous record high of 287 billion euros in 2010. Around 3,510 euros were spent on health per capita in Germany, said the Federal Statistical Office (Destatis) in Wiesbaden on the occasion of today's World Health Day.

According to the Federal Statistical Office, health expenditure in 2010 corresponded to 11.6 percent of the gross domestic product (GDP) in Germany. Compared to 2009, spending has increased by 8.9 billion euros or 3.2 percent, according to the statement by Destatis. In terms of health expenditure per inhabitant, an increase from € 3,400 in 2009 to € 3,510 in 2010 was observed.

Health expenditure reaches its highest level ever
At € 287.3 billion, health expenditure in 2010 reached its highest ever level. Although the 3.2% increase in the average spending increase from 2000 to 2009 (3%), in the long term, healthcare costs are threatening to become a serious test of our social and economic system. Thus, the growth in expenditure is well above the annual economic growth (increase in GDP), so that at some point the limit of affordability will inevitably be reached. According to the Federal Statistical Office, the largest share of current health expenditure was borne by the statutory health insurance funds. 165.5 billion euros or 59 percent of health spending was paid by the statutory health insurance companies, with their expenditure rising by 2.9 percent or just under five billion euros compared to the previous year.

Massive spending growth in social care insurance
According to the Federal Statistical Office, the highest overall growth in expenditure on health care was registered with six percent (increase by € 1.2 billion to € 21.5 billion) in social long-term care insurance. „The second largest increase was recorded by households and non-profit institutions serving households“, Destatis reports in the message „Health expenditure rose to around 287 billion euros in 2010“. Here, expenditure increased by around 1.6 billion euros (4.3 percent compared to 2009) to 39 billion euros in 2010. Among the recipients of payments, outpatient health care institutions were by far the leaders. It almost became like that „every second euro spent on health care goods and services in outpatient health care facilities“, so the message of the Federal Statistical Office. Of the outpatient facilities, 43.1 billion euros went to the doctors' offices and 40.9 billion euros to the pharmacies. Of the total volume of expenditure rather insignificant, however, with the strongest percentage increase in expenditure compared to the year 2009 were the outpatient care facilities (plus 7.6 percent) and the practices of other medical professions (for example, physiotherapists, occupational therapists and speech therapists) with plus 5.2 percent.

Inpatient care significant cost factor
One of the key health-related costs is inpatient care, which includes hospitals, care facilities, and preventive and rehabilitation facilities. According to Destatis, spending has increased by four percent to 104.2 billion euros, and the (partially) inpatient facilities now account for 36 percent of total health expenditure, with a large proportion of hospitals (74.3 billion euros) eliminated. Expenditures in the field of clinics have recently been the subject of much controversy over the future structure of medical care in Germany. Various experts also called for a stronger networking of outpatient and inpatient care and addressed the closure of hospitals to reduce costs.

Comparability of health expenditure
The data presented by the Federal Statistical Office correspond to that of „Organization for Economic Co-operation and Development (OECD), World Health Organization (WHO) and Statistical Office of the European Union (Eurostat)“ developed concept that will allow international comparability of health expenditure, reports Destatis. In the expenditure accordingly „all goods and services with the aim of prevention, treatment, rehabilitation and care, the costs of administration and investments of health care institutions“ considered. Expenditure spent on research, training or to cover sickness costs is not included here. For this reason „The health expenditure in the health expenditure account deviates from the expenditure of the individual social insurance institutions, in particular the statutory health insurance“, so the message of the Federal Statistical Office. (Fp)

Also read:
Increase in health expenditure in Germany

Picture credits: Chris Beck