Released on September 19, 2024, the Commonwealth Fund’s latest report compared the health systems of 10 high-income nations based on five key domains: access to healthcare, care process, administrative efficiency, equity, and health outcomes. This startling report revealed that the U.S. lagged alone in the lower-performing zone despite its high healthcare spending.
The U.S. spends about twice the average of other countries on healthcare. In 1980, U.S. healthcare spending was 8.2% of the gross domestic product (GDP), but in 2022, it doubled to over 16%. Other countries in the study spent between 4% and 8% in 1980, increasing to 8% to 12% by 2023.
This year’s report differs from previous editions primarily because it covers 10 countries instead of 11 after Norway’s exit from the International Health Surveys in 2022. Australia, the Netherlands, and the United Kingdom clinched the top spots, while New Zealand, France, Sweden, Canada, Switzerland, and Germany were not far behind the average.
The 2024 report includes data on telehealth adoption and the influence of the COVID-19 pandemic on healthcare systems. It focuses on equity and the role of social determinants in shaping health outcomes.
Why does the U.S. rank last?
The U.S. trails behind other wealthy nations across various health system performance indicators. Commonwealth Fund President Dr. Joseph Betancourt told NBC News that no country other than the U.S. “expects patients and families to pay as much out of pocket for essential health care.”
Other concerns include underfunded primary care, which leads to provider shortages; a complex, fragmented system that creates administrative inefficiencies and is driven by a vast array of insurance plans; and provider consolidation, which raises costs.
The report suggests that the U.S. government should consider reducing financial barriers, simplifying insurance plans, investing in primary care, and addressing consolidation in healthcare markets. Social issues, including poverty, gun violence, and racial inequities, also heavily impact health outcomes.
Outsourcing health services: A potential solution
One strategy for improving U.S. healthcare performance is outsourcing certain services to other countries. Healthcare BPO has seen significant growth in recent years, with many U.S. hospitals and health systems partnering with vendors in countries such as India and the Philippines.
Healthcare outsourcing, valued at $304 billion in 2022, is expected to reach $650 billion in 2027. This growth is driven by health providers addressing staffing shortages and integrating new technologies.
Over 91% of U.S. hospitals outsource at least one function, with smaller hospitals contributing 71% of these engagements. Common services outsourced to healthcare BPO providers include medical coding, billing, claims processing, and customer service.
The “Mirror, Mirror 2024” report highlights the challenges of the U.S. healthcare system. Addressing them requires a multifaceted approach, including increasing access to care, improving affordability, and enhancing quality.
While outsourcing can offer benefits, the government must evaluate potential risks carefully, maintain quality standards, and address concerns about job losses and data security.
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Cohen, J. (2024, October 3). U.S. Healthcare System Ranks Last Among 10 Nations, According To New Study. Forbes. Retrieved from https://www.forbes.com/sites/joshuacohen/2024/10/03/us-healthcare-system-ranks-last-among-10-nations-according-to-new-study/
