Spain’s Healthcare Spending Hits €97.7 Billion in 2023 Amid Shifting Budget Priorities

Public healthcare spending in Spain reached €97.661 billion in 2023, representing a 6.2% increase over the previous year, according to data from the Public Healthcare Expenditure Statistics (EGSP) published by the Ministry of Health. Although growth is continuing, the evolution by function reveals significant changes in the distribution of the budget, with a sharp drop in public healthcare spending and a historic low in the relative weight of pharmaceutical spending in offices.

Pharmacy spending reached €13.984 billion, 3.2% more than in 2022. However, its share of total healthcare spending fell to 14.3% , the lowest in the historical series dating back to 2002, thus consolidating the downward trend of recent years. This percentage decline occurs despite nominal growth and reflects the structural shift toward a greater weight of spending on hospitals and human resources.

On the other hand, despite the growth in public healthcare spending in absolute terms, its share of GDP decreased, from 6.8% in 2022 to 6.5% in 2023 , reflecting the combined effect of a stronger economic recovery and a relative stabilization of health spending.

Public healthcare spending falls by 43.6%

Another highlight of the EGSP is the evolution of the allocation for public health, which fell by 43.6% compared to 2022 , to €1.703 billion , representing just 1.7% of total health spending. The decline, somewhat logically as we move further away from the pandemic, means that the budgetary contraction in this area is rapidly moving towards levels similar to those of 2019, before the impact of the pandemic. Thus, the decline raises questions about the risk of undercapitalizing a key area for prevention and preparation for future health threats .

Hospital and specialized services also grew by 6.5% , reaching €59.545 billion , representing 61% of total spending. Primary health services, meanwhile, increased by the same amount (6.5%), reaching € 13.961 billion , also representing 14.3% .

Other functions such as transportation, prosthetics and therapeutic devices grew by 10.3% (to €1.701 billion ), while capital expenditure experienced a strong rebound of 71.2% , to €4.152 billion , which points to a revival of investment in healthcare infrastructure.

Historical evolution in the healthcare spending

Regarding the historical evolution of the EGSP, it is worth highlighting the significant increase observed in the research and training item, with an average annual growth rate of 11.4%.

Other significant increases come from intermediate consumption in the hospital sector, which includes all consumables, as well as medicines, medical devices, and technology, which has grown by an average of 6.5% annually over the last 21 years.

Meanwhile, the growth in prescription spending has grown by only 2.4% annually on average.

__

(Featured image by Marek Studzinski via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in diariofarma. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us