Healthcare expenditure is a vital indicator of a country’s economic development and social welfare. In this blog post, we will analyze and compare the healthcare spending of Bangladesh, India, and Pakistan. Specifically, we will look at the ‘Out-of-pocket expenditure (% of current health expenditure)’ and ‘Current health expenditure per capita’ from the years 2000 to 2019. We will also compare these values with the world average to gain a broader understanding of these countries’ healthcare spending trends.
Out-of-pocket expenditure (as a percentage of current health expenditure)
Out-of-pocket expenditure is the amount individuals pay for healthcare services, including direct payments to healthcare providers and indirect payments such as taxes or insurance premiums. High levels of out-of-pocket expenditure can lead to catastrophic health expenses and impoverishment, making it a crucial indicator of financial protection in healthcare.
The graph below depicts the trend in ‘Out-of-pocket expenditure (% of current health expenditure)’ in Bangladesh, India, and Pakistan from 2000 to 2019.
As shown in the graph, India and Pakistan have experienced a gradual decline in out-of-pocket expenditure as a percentage of current health expenditure. Meanwhile, Bangladesh has seen an increase in out-of-pocket expenditure from 61.1% in 2000 to 72.68% in 2019, a rise of more than 10% over two decades. In contrast, Pakistan’s out-of-pocket expenditure dropped from 61.53% in 2000 to 53.81% in 2019, and India’s decreased from 71.7% in 2000 to 54.78% in 2019, a remarkable 17% drop.
Current health expenditure per capita
Current health expenditure per capita refers to the amount spent on healthcare per person in a country. It includes both public and private spending on healthcare and is an essential indicator of a country’s healthcare infrastructure and investment. According to WHO “This includes spending by all types of financing arrangements (such as government-based programmes, social insurance and out-of-pocket spending) on medical services and goods, population health and prevention programmes, as well as administration of the health system.”
The graph below illustrates the trend in ‘Current health expenditure per capita’ in Bangladesh, India, and Pakistan from 2000 to 2019.
As seen in the graph, current health expenditure per capita has consistently increased in all three countries over the past two decades. However, Bangladesh has consistently spent the least amount per capita on healthcare compared to the other two countries. Only in 2019 did Bangladesh catch up to Pakistan, but India continues to spend the most. In 2019, current health expenditure per capita was $45.86 in Bangladesh, $63.75 in India, and $39.5 in Pakistan.
Comparison with the world average
To understand the global scale of healthcare spending, we can compare the healthcare spending of these countries with the world average. According to the World Health Organization, the world average for ‘Out-of-pocket expenditure (% of current health expenditure)’ is 18.01%.
The table below compares healthcare spending in Bangladesh, India, and Pakistan with the world average.
As evident from the table, all three countries spend significantly more in terms of out-of-pocket expenditure and current health expenditure per capita than the world average.
Conclusion
In conclusion, the analysis of healthcare spending in Bangladesh, India, and Pakistan shows significant variations in their spending patterns. When it comes to healthcare expenditure, all three countries being compared, Bangladesh, India, and Pakistan, are spending more out-of-pocket than the world average. However, the numbers in Bangladesh are particularly concerning as they are four times higher than the global average. This puts a great deal of financial pressure on individuals and households, especially those with low incomes.
To alleviate this burden, it is crucial for the governments of these countries to increase their spending on healthcare. By doing so, they can provide affordable and high-quality healthcare services to their citizens. The data presented in this analysis highlights the urgent need for governments to prioritize healthcare spending, ensuring accessible and affordable healthcare services for all their citizens.