Healthcare costs to rise, but at slower rate

Health care spending in Switzerland is set to increase over the next two years but the rise will not be as pronounced as it has been in the last two years, a study says.

The KOF Swiss Economic Institute in Zurich reported on Monday it expects the increase to be 3.4 per cent this year, 3.7 per cent in 2011 and three per cent in 2012.

It said health spending would rise from SFr63.5 million ($63.3 billion) this year to SFr67.8 billion in 2012, an increase of more than SFr4 billion.

The increases were 5.9 per cent in 2008 and is estimated at five per cent for 2009.

The institute said there were two factors that would put a brake on the explosion of costs. Salaries in the health sector were expected to remain stable, while there would be reductions in the price of some medicines.

In a related development, the Organisation for Economic Co-operation and Development gave Switzerland good marks on Monday for the efficiency of its health care.

The OECD said in a report that Australia, Japan, South Korea, Switzerland and Iceland received the best health results for the money spent.

But it warned that governments had to make their health care systems more efficient if they were to maintain quality of care without putting further stress on public finances.