Healthcare spending market dominated by the US

Press Release   •   Aug 30, 2012 09:44 BST

The US currently dominates the healthcare spending market and is the world's number one healthcare spender in terms of percentage of Gross Domestic Product (GDP) and per capita.

US healthcare spending market is set to grow to unprecedented levels following the implementation of the recently passed Affordable Care Act (ACA). The United States spent $8,300 per person on healthcare in 2010, but is expected to outlay as much as $12,500 for each citizen by 2020.

Growth in healthcare spending is expected to be modest until 2014, when the addition of 19.6 million people to the Medicare program is expected to increase Medicaid spending by 18% and private sector spending by 7.9%.

However, while the richest country in the world's healthcare system continues to expand, it is emerging nations such as China that will exhibit the most substantial growth as these governments aim to make basic healthcare more affordable to a wider demographic.

Healthcare spending in China will almost triple to $1 trillion annually by 2020 driven by an aging population and government efforts to broaden insurance coverage.

China will spend more on drugs, medical devices and hospital treatments as it lifts spending to 7% of gross domestic product, from 5.5%, or $350 billion, in 2010. This will make it the biggest market globally by 2020 after the US, which in 2009 spent $2.5 trillion, or 17.6% of its GDP, on health care.

For more information on the healthcare spending market, see the latest research: Healthcare Spending Market Report

Follow us on Twitter @CandMResearch issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.