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France and Germany spend a lot – inefficiently

When we think of France and Germany in terms of living standards, we typically envision prosperous, developed countries with efficient public services. However, the findings from the 2022 Health for Money Index paint a different picture.

Both Germany and France allocate substantial portions of their economy to healthcare. Germany's public expenditure on healthcare accounts for 12.81% of its GDP, while France's represents 12.21% of its GDP. These figures position them as the top two countries among the 26 examined nations. Nevertheless, the question remains: Is this money effectively utilized?

In the nominal results ranking, France and Germany are neighboring countries as well. However, their respective positions are considerably lower, with France in eighteenth place and Germany in nineteenth. Scoring 10.8 and 10.3, they find themselves closer to Latvia, which is in last place with a score of 6.3, than to Sweden, which holds the top spot with a score of 16.1.

When considering the combination of substantial public spending and health outcomes that position both countries in the lower half of the ranking, it inevitably results in a subpar performance in terms of spending efficiency, as measured by the Health for Money Index. Germany finds itself at the bottom of the list, while France takes the 24th spot, surpassing Switzerland, another country with high spending.

The examples of France and Germany serve as an illustration that high spending does not automatically lead to the best health outcomes. Resources must be allocated sensibly and with a clear purpose in mind.

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