This chapter looks at recent trends in health spending, both at an overall level but also disaggregated according to the type of health care service or medical good, and by health care provider. A particular focus is given to analysing spending in the hospital sector and on pharmaceuticals. The chapter ends by analysing how health care is financed in Europe, both in terms of the type of financing arrangements in place and the revenues that ultimately fund health care spending. Data presented in this chapter are jointly collected by OECD, Eurostat and WHO, and comply with internationally standardised definitions of health spending provided under the System of Health Accounts (SHA 2011) framework.
In 2017, spending on health care in the European Union stood at 9.6% of gross domestic product, ranging from over 11% in France and Germany to less than 6% in Romania. This share remained largely unchanged from the previous two years as health spending grew in line with the economy in Europe. In most countries, payments for curative and rehabilitative care services made up the bulk of health spending, while spending on pharmaceuticals also accounted for a large share of health expenditure in some countries. Regarding the financing of health care, compulsory schemes, either government financed or through compulsory public or private health insurance, were the dominant method of financing accounting for more than three-quarters of overall health spending. However, out-of-pocket expenditure also played an important role in health financing for several Southern as well as Central and Eastern European economies.