The United States is by far the country that spends most on health care, yet has the worst overall population health, according to a new report.

The U.S. spent $7,500 per person on health care in 2008, according to a recent report from The Conference Board of Canada. The U.S. spends 16 percent of its gross domestic product on health care, with private expenses making up the majority of that spending. This is 50 percent more than the second highest spender, Norway.

The U.S. also has the highest proportion of private expenditures on health and is the only country among its peers with a greater share of private than public spending.

Yet the country ranked last among the 16 peer countries on population health. The U.S. records the lowest life expectancy and ranks last on infant mortality.

Additionally, physicians in the U.S. are among the highest paid, but they are also most likely to have to pay the highest insurance premiums. Not surprisingly, the report also states the U.S. spends far more than other countries on diagnostic tests.

In general, the report showed that the richer the country, the greater the amount spent on health care. And spending more apparently doesn’t result in better outcomes.

“The adage that you get what you pay for applies in general to health care spending, but there are some major exceptions among the world’s most developed countries,” says David Stewart-Patterson, The Conference Board of Canada’s vice president, public policy.

Japan, the country with the lowest health expenditures (at $2,729 per person), has excellent health outcomes – the Japanese have both the highest life expectancy and the second-lowest infant mortality rate among the peer countries assessed.

Instant Insights /

US spends most on health care, but ranks last in health

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