Jan 19, 2014

Are Health Expenditure & Life Expectancy Related?

Does life expectancy depends on how much is invested in in Health?
'Of course' one would say as a first response. But on second thought the relationship between healthcare and life expectancy is rather complex:
  • More basic healthcare improves the quality of life and therefore life expectancy
  • However, countries with relative bad health conditions urge for relative extra investments in health that at first do not directly pay back in extra  life expectancy
  • Developed countries that invest a lot in health might invest more than is needed for an optimal life expectancy

Let's take a look at the last available (2011) Top-20 figures:

As discussed, the relationship between Health Expenditure (HE) as a percentage of a country's GDP from a global point of view, is not directly related to Life Expectancy (LE) at birth in a specific country.


Healthcare Investment Optimum?
If you could speak of a HE-optimum, it would be somewhere around 10,6%.
Higher Health Expenditure costs than 10.6% do not seem to contribute to an increase in life expectancy.

Let's conclude with an interactive chart from Tableau Public:


Sources/Links/Downloads
- Health expenditure, total (% of GDP)
Life expectancy at birth, total (years)

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