Israel today enjoys one of the most developed, broad, and modern healthcare systems in the world, including in comparison with developed countries. Nonetheless, as of 2010, Israel's healthcare system is characterized by contradictions and gaps between its potential and its reality.
Israel is one of the most innovative nations in biomedical research, but there is still a gap between the country's huge potential for innovation in the field and its ability to realize this potential. For example, although Israel is one of the top countries in registering biotechnology patents, the number of biological drugs approved by foreign regulators, and which were derived from initial development in Israel is extremely low - only two in 1989-2009.
Compared with the region where Israel is located, it is a leader in the number of clinical studies undertaken in its territory. 2,200 clinical studies were conducted in Israel as of January 2010, but compared with the number of clinical studies conducted worldwide, and their economic significance, Israel still has a lot of room for development.
Israel's level of healthcare is considered one of the highest in the world, but there are differences in access to medical treatment. Hospital bed occupancy is one of the highest in the world (92% compared with the OECD average of 75%). The number of hospital beds is very low compared with the OECD average, at 2 per thousand versus 3.8 per thousand.
Public investment in healthcare is substantial, and is the third largest budget item after defense and education. However, Israel's place in the OECD in terms of percentage of GDP spent on healthcare is low, at 7.7% compared with the OECD average of 8.9%.
Moreover, whereas national spending on healthcare as a percentage of GDP has been more or less stable over the past decade, private spending on healthcare has steadily increased. Since the National Health Insurance Law was enacted in 1995, private spending has jumped from 31% of total national spending to 43%.
Israel excels in adopting innovative treatments and technologies and in the willingness of its people to use them. But it is worrying to see that a country with such a small territory still has substantial regional and communal differences: there is a three-year difference in the life expectancy between Jews and Arabs; and 54% of residents in the north say that they have foregone dental care because of financial hardship.
When we are forced to forego medical treatment because of financial hardship, the first thing to be given up is dental care, followed by general care, and then medicines. It is also possible to see that as income levels fall, the gap between the sense of independence and health widens.
Unsurprisingly, over 70% of the adult population that earns the minimum wage say that their health is poor. Another worrying fact is that 30% of young people who earn similar salaries report that their health is poor.
These figures, to a great extent, reflect Israel's strengths and weaknesses. True, it is easy to calculate the statistics, but it is hard to change. Happily, Israel has already shown marvelous abilities in technology, health, and welfare. These figures can serve as a basis for discussion on ideas and programs among policy and decision-makers on how to narrow the gaps and fulfill the potential.
Ofra Feinmesser is the country manager of Pfizer Pharmaceuticals Israel Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010