With global health expenditure reaching a startling $9.8 trillion in 2021, making up 10.3% of the world's GDP, the World Health Organization (WHO) has published its 2023 Global Health Expenditure Report. This notable rise emphasizes how urgently sensible policies are needed to control growing healthcare expenses. Addressing this challenge calls for a comprehensive strategy comprising investments in technology, patient empowerment, strategic collaborations, and preventative actions.

Efficiency through prevention

Reducing the burden of avoidable diseases and preserving resources depends on preventive healthcare. For example, the Smoking Cessation Program in British Columbia, Canada provides free prescription medications and nicotine replacement therapy, thereby saving around three Canadian dollars for every dollar invested by lowering smoking-related hospital visits and diseases. Comparably, a U.S. project aimed at preventing type 2 diabetes through lifestyle modifications discovered that participants who lost 5-7% of their body weight lowered their risk of diabetes by 58%, saving almost $2,650 per participant over ten years.

Public-private partnerships

While preserving high standards of quality, public-private partnerships (PPPs) have proven to be an effective approach for cost control. A case study on PPPs in the UK on the Proton Beam Therapy Program for cancer treatment — a partnership between the NHS and commercial sector businesses — highlighted notable cost savings. Since its founding, this cooperation has saved £21 million in treatment expenses and cut infrastructure costs by thirty percent relative to conventional public initiatives.

Advocacy and patient empowerment

By encouraging participation and wise financial decisions, empowering patients and supporting their involvement can significantly lower healthcare expenses. For example, the NHS's "realistic medicine" approach — which emphasizes shared decision-making between patients and healthcare providers — led to a 15% drop in inappropriate procedures, saving the UK around £800 million yearly. While cost-comparison tools for elective treatments have helped patients save 30% on healthcare costs, financial consulting offered by the Austrian Patient Advocacy Group has raised the rate of effective treatment purchases.

Investment in telemedicine

By improving access to care, eliminating unnecessary hospital trips, and boosting healthcare delivery efficiency, investing in technology, digital health solutions, and telemedicine has effectively lowered healthcare costs. Compared to conventional office visits, U.S. telehealth appointments for acute diseases saved an average of $100 per visit. By cutting travel expenses for patients and healthcare providers, the Ontario Telemedicine Network (OTN) saved the province about 55 million Canadian dollars in Canada.

Artificial intelligence funding

By improving diagnosis accuracy, simplifying administrative processes, and enabling predictive analytics, artificial intelligence (AI) has the potential to drastically lower healthcare expenditures. For imaging diagnostics, studies have found that by increasing efficiency and precision, AI algorithms can cut expenses by up to 30%. Furthermore, AI-driven administrative tools are expected to save 5% to 10% of healthcare expenditure, which, in the United States, amounts to over $200 billion to $360 billion yearly. By foreseeing and preventing diseases, predictive analytics driven by artificial intelligence also helps to lower the need for expensive treatments and hospitalizations. These examples show the significant financial gains artificial intelligence can provide for healthcare systems worldwide.

Regionally

We have no doubt that Saudi Vision 2030 is efficiently tackling the optimization of healthcare spending. Though almost halfway through the path of its "Saudi Vision 2030," Saudi Arabia has shown notable success toward its goals, with 87% of the initiatives either fulfilled or on pace. A clear strategy to improve healthcare outcomes and ensure a sustainable and efficient healthcare system for Saudi Arabia is demonstrated by the dedication to transforming initiatives including preventative care, public-private partnerships, patient empowerment, and sophisticated technologies.