JERSEY spends more on its health service as a proportion of total expenditure than any other developed country, statistics show.
The Island spends 28% of its total budget on health, the biggest out of a group of 38 countries that includes Japan (23%), the US (27%), Australia (21%), and the UK (20%).
This data comes from the second ever Classification of the Functions of Government report, published yesterday by the Treasury Department.
It breaks down the public sector’s spending habits into ten internationally recognised categories such as health, education, and public order and safety, and provides comparisons to other jurisdictions.
Overall general government expenditure was £1,644,200 in 2023, which was an increase of 6.3% from the previous year.
This increase from 2022 was mostly driven by a rise in Health spending of £51.6 million to hit a total of £484.1 million in 2023, including rises of £30.2 million on hospital services and £14.8 million on outpatient services.
When placed beside other countries, Jersey therefore spent more on Health as a proportion of its total spend than all 38 Organisation for Economic Co-operation and Development countries.
Alongside 28% on Health, the Island spent 33% on social protection and 12% on education, with the remainder going towards other government services.
The report said that Jersey’s “relatively high health spending will likely be influenced by several factors unique to small island jurisdictions”.
It added: “With a smaller population, fixed healthcare costs, such as maintaining hospitals, specialised medical services, and infrastructure, can represent a larger share of total spending.
“Additionally, economies of scale are harder to achieve in smaller jurisdictions, which can result in higher per capita costs.
“Furthermore, attracting and retaining healthcare professionals in a smaller jurisdiction, with a comparatively high cost of living, may require higher wages or additional incentives, contributing to the overall costs of delivery.”
A senior consultant brought in to drive improvements in Jersey’s health service, Professor Simon Mackenzie, told the Health Scrutiny Panel in July that running the service another way by partnering with a hospital in the south of England would not only save money but improve patient services.
“I think your system does need to be redesigned,” he told States Members.
Efforts are also being made to contain spending in this area, and a “change team” of consultants are currently implementing the Financial Recovery Plan, which aims to achieve savings of £25 million in the department throughout 2024 and 2025.
