How much does healthcare cost across the world?

1. Why do healthcare costs vary so significantly between different countries?

2. A snapshot of the private healthcare landscape globally

3. Consider international health insurance

Understanding how to access quality healthcare services could be a top concern if you’re moving to or living in another country. But do you know how much medical treatment can cost abroad, and that the price can vary widely depending on the country?

In this blog, we explore the differences in healthcare costs across the world and the key factors that influence them.

Why do healthcare costs vary so significantly between different countries?

Healthcare costs differ globally due to a range of factors, including a country’s general cost of living, demand for healthcare services, and advances in medical technology.

Rising healthcare spending

Rising healthcare expenditure is a major reason why prices for medical treatment vary significantly. This includes the costs associated with providing services, administration, and investment in new medical technologies and innovations.

Some countries are able to invest more in healthcare infrastructure, such as building or renovating medical facilities and purchasing advanced equipment. However, these solutions can be expensive to implement and maintain, and often make healthcare more costly.

Attracting and retaining highly-qualified and experienced medical professionals also impacts healthcare prices. While they can deliver an excellent standard of care, factors such as remuneration and ongoing professional development are essential for these workers and can differ in cost depending on the country.

Demand for services

Many nations have been experiencing a greater demand for medical care in the past few years, requiring more investment into resources and medical professionals to provide patients with the treatment they need.

This demand is influenced by factors such as ageing populations, medical innovation, and a rise in preventative care and chronic diseases, which can lead to longer waiting times for medical care and rising healthcare costs.

General cost of living

Cost of living is another reason why the price of medical care can vary widely in countries across the world. In places where this is higher, such as in Singapore and Switzerland, services are typically more expensive.

Increased costs for the hiring and retaining of skilled medical professionals has contributed towards this, as well expenses related to the management of medical facilities and provision of drugs and services to patients.

A snapshot of the private healthcare landscape globally

Let’s take a closer look at what private healthcare looks like in some countries, and the costs associated with it.

Singapore

Singapore has the best ranked healthcare systems in the world according to Statista, but is one of the most expensive places to access medical care.¹

Its private medical facilities are renowned for their excellent quality of care. State-of-the-art medical facilities are often equipped with the latest medical technology and offer significantly shorter waiting times for patients than public healthcare services.

There has also been a surge in demand for private medical treatment in Singapore in recent years. This is due to a variety of reasons, including a rise in medical tourism, the nation’s ageing population, and the fact that expats aren’t entitled to subsidised public healthcare.

Read our blog to learn more about why healthcare costs in Singapore are generally expensive.

UK

Compared to other countries, the UK’s private healthcare sector functions on a much smaller scale than the public system. But like in Singapore, private healthcare services are becoming increasingly popular here, with its market value reaching a new peak value of £12.4bn in 2023.²

Reasons behind this higher demand include a desire to avoid long waiting times for medical treatment as well as to benefit from the most advanced facilities and technologies.

The private sector in the UK also doesn’t normally receive government subsidies. As a result of this, the cost of care more can be expensive for patients than public healthcare due to greater operational costs.

Find out more what accessing healthcare in the UK is like for an expat by clicking here.

Germany

Germany has a strong healthcare system, with a higher expenditure in this area than all other countries in the EU in 2023 at €488bn.³

Anyone who lives or works in Germany must have health insurance in order to access medical care. The German healthcare system is based on a hybrid model, where two types of health insurance are available to the population: public health insurance (GKV) and private health insurance (PKV).

It’s important to note that only certain groups can opt for private health insurance pathway. They make up only a small proportion of the population, and incorporate the following:

• Freelancers or self-employed individuals

• If you have an international health insurance plan

• Non-EU citizens

• Civil servants

• Some types of students (e.g. those from non-EU countries or who are over the age of 30)

• Individuals earning more than €73,800 annually

Private health insurance premiums are risk based and not income based like with public insurance. The amount paid is calculated based on a number of factors, such as age, chosen level of cover, and if they have any pre-existing medical conditions.

Additionally, groups including freelancers or self-employed individuals are required to pay the full cost of private medical insurance themselves. This is because they do not receive any additional financial support from either the state or an employer towards the cost of healthcare. 

South Africa

In South Africa, private healthcare is also used by only a small percentage of the population, but has experienced an increased demand for its services.

This is because many people wish to avoid long waiting times for medical treatment and get access to the most advanced medical facilities and technologies.

Additionally, South Africa is experiencing a severe lack of healthcare specialists in the public sector, driving more people towards using private healthcare. Private providers are having to pay more to retain specialists due to this shortage, which can contribute to increased costs for patients.

The fees for private medical treatment are also not capped or tightly regulated by the government, so providers are free to set their own pricing, keeping costs high.

Consider international health insurance

Investing in an international health insurance plan could be a good idea when you’re living overseas, allowing you to have prompt access to quality healthcare services in top private medical facilities in your chosen area of coverage.

It can mean you’re not left out of pocket if you fall ill when abroad. You could face expensive medical bills if you don’t have an insurance plan in place, or potentially face delays in receiving treatment.

Having private insurance cover may even be a pre-requisite when applying for a visa in specific countries. Do thorough research before your relocation to see if this is something you need to provide.

Click here to read more about the benefits of taking out an international private medical insurance plan.