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6/6/12

Europe not US has the right model on health care

Barack Obama's once boasted that Americans have better health care than the best India can throw at them. This is both true and pointless. It is not as if this stunning fact was spotted accidentally by a window cleaner. If the United States is spoiling for a punch- up on health policy, it should pick on somebody its own size and come out in the open. America's real challenger is not India, but Europe.

Though Europe has done extremely well by all health parameters, it has not been able to broadcast its model effectively. In fact, every time medical expenses as proportion of Gross Domestic Product (or GDP) goes up by even a tiny bit, either in Sweden, Italy, France or Luxembourg, influential policy makers in America, as well as in India, use it to discredit the European medical system.

Notwithstanding nips and tucks, the bare fact that Europeans live longer than Americans should have settled the contest long ago. In America only 12.6 per cent cross the age of 65 whereas the figure is 16.7 per cent and 21.5 per cent in Europe and Japan respectively. What is more, the European model is also cost effective.

The United States spends about 16 per cent of its Gross Domestic Product (GDP) on health, whereas the European average is around 9 per cent. Europe delivers better medical care at cheaper rates because it has limited the role of the private sector in this field. This makes it harder for ants to run away with the picnic.

Has state sponsored universal health delivery undermined medical care in Europe? No. While there are just 2.4 beds for every thousand in the United States, in Europe the figure is 3.1. On this parameter alone, America would rank a lowly 23rd amongst other European countries. Neither is the tale of the tape flattering when we compare the availability of beds for acute care between America and Europe. In Europe there are 3.7 beds per thousand dedicated for this purpose, whereas in America it is just 2.8.

America's status falls further when we consider infant mortality rates (IMR) - an important public health index. With an IMR of 6.75 per thousand live births the USA would rank 27th in Europe.  Even Cuba does better on this account.

Infrastructure wise, there are other bits of bad news from America. In terms of practizing physicians, for example, Europe easily outdoes the USA. Whereas there are 2.4 such professionals for every thousand in America, the number rises to 3.1 when we look at OECD countries.

EU-Digest



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