By: Giselle De Leon
Healthcare spending can lead to greater wellness opportunities, which can help to enhance human capital and increase productivity, boosting economic performance. Dr. Francesca Parise from the Laboratory for Information and Decision Systems at MIT, suggests, “In the field of healthcare, analytics technology is increasingly being applied. Analytics enables statistical and quantitative assessments of huge data repositories, allowing for evidence-based decision-making.” Overall, my review of other preliminary research points to a robust link between healthcare spending and economic variables such as earnings, GDP, particularly labor productivity. Spending on healthcare could increase revenue, GDP, and productivity, as well as reduce poverty. According to Dr.Nicholas Orchanian at Columbia University, “A rise in healthcare spending has a beneficial impact on economic performance and links to climate change, the study found. As a result, judiciously investing in various parts of healthcare would boost revenue, productivity and productivity and reduce poverty.”
While high-income countries spend an average of $3,000 per person on healthcare, low-income nations spend as little as $30 per inhabitant. Some countries spend more than 12% of their GDP on healthcare while others spend as low as 3%. Increase in healthcare spending is likely to be linked to an increase in GDP (David E.Bloom, David Canning, Jaypee Sevilla).
The influence of health on savings is another important aspect of the relationship between healthcare spending and economic development. Good health can extend one's life expectancy and enhance one's motivation to save (for example, for retirement), and make greater company investments, all of which are helpful to economic performance. (Daron Acemoglu and Simon Johnson).
Overall, the research adds to the growing body of knowledge about healthcare spending and economic success. It explains how the government may allocate healthcare spending in critical areas to boost economic growth while simultaneously enhancing the population's well-being. Given the potential economic benefits of healthcare, global health coverage is an area that merits additional investigation.