A new study published by the UK Office for National Statistics (ONS) Centre for the Measurement of Government Activity shows total healthcare expenditure is not the main driver of public sector cost in the UK.
The study conducted over a period of ten years (from 1997 to 2007) shows that healthcare costs grew by an average of 0.8% which is below that of other public sectors. The ONS also looked into details of the various components of the healthcare input and compared them with the economy as a whole. It appears that:
- The cost of goods and services increased more slowly than the costs of goods and services in the wider economy (1.0% against 2.5% on average)
- The cost of labor grew faster than labor costs in the broader economy (5.6% against 4.5% on average)
The study concludes that the restrained growth of the price of goods and services inputs in healthcare has to some extent offset the relatively high recent growth in labor costs.
John Wilkinson, Chief Executive of Eucomed, comments on the study’s findings: “Policy-makers should recognize that healthcare may not be the main cost driver in European economies as is often believed. This data demonstrates that the growth in goods and services costs in healthcare has been relatively modest over the years and their impact on the whole economy somewhat limited. As a component of the goods and services in healthcare, the medical technology industry in Europe is always striving to provide cost-effective products which reduce the economic burden of the public sector while at the same time improving health outcomes for patients”.
