HEALTH spending as a proportion of the economy rose to 5.9% in 2024 as overall spending rose to its highest level in three years, the Philippine Statistics Authority (PSA) reported on Thursday.
Citing preliminary data, the PSA said the share of national health expenditure to GDP had been revised 5.5% in 2023.
The 2024 reading was the highest since the 6.4% posted in 2021.
The increase in health expenditure was driven by higher household incomes, improved employment conditions, and increased prices of medical goods and services, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said via e-mail.
Also, factors were the modernization of medical facilities in more parts of the country by both the private sector and by the government, he said.
He added that public health programs benefited from increased funding to support indigent patients.
In 2024, health expenditures rose nearly 19% to P1.44 trillion, against the revised P1.21 trillion in 2023.
Gross health capital formation expenditure rose 1.7% to P121.47 billion in 2024.
This brought total health spending growth to 17.1%, the highest since the 22% posted in 2021.
Government schemes and compulsory healthcare financing schemes accounted for 44.7% of expenditure in 2024, or P643.12 billion. This was 29.5% higher year on year.
Households accounted for 42.7% of the overall spending bill at P615.16 billion, up nearly 12%.
Voluntary healthcare schemes accounted for 12.6% of the health bill in 2024 at P181.12 billion, up 8.9%.
On a per capita basis, health expenditure rose 17.6% to P12,751 in 2024.
Hospitals received 39.2% of healthcare expenditure or P564.43 billion. Retailers and other providers of medical goods accounted for 31.5% at P453.88 billion, while providers of healthcare system administration and financing took in 9.2% or P132.60 billion.
Mr. Ricafort said that growth trends in healthcare expenditure has been consistent in recent periods and will extend to the coming years “as healthcare is one of the priority expenditures by individuals, households, government, and other institutions.” — Matthew Miguel L. Castillo