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Healthcare expenditure in Ireland was 12.2% of modified Gross National Income (GNI*) in 2021 compared with the OECD average of 10.4% of Gross Domestic Product (GDP).
In 2021 the Government financed 77% of healthcare expenditure while private health insurance companies paid for 12%.
Most healthcare spending occurs within the hospital setting accounting for 37% of the total expenditure on healthcare in 2021.
Preventative care spending rose by 66% in the year which includes COVID-19 testing and vaccination expenditure.
Preliminary estimates for 2022 shows total expenditure on healthcare was €30.5 billion, which is a 6.6% increase on 2021.
In 2021 Ireland spent €28.6 billion on current healthcare costs, equivalent to 6.7% of GDP or 12.2% of GNI*. This was an 8.0% increase over the level of spending in 2020, which is explained by the additional expenditure due to COVID-19 as well as a resumption of normal healthcare activities during 2021.
The System of Health Accounts measures the current expenditure on health care for residents of Ireland. A number of classifications are used in this publication which are explained in the background notes.
| Table 1.1: Current Health Expenditure in Ireland, 2017 to 2021 | |||
| Year | € million | % of GDP | % of GNI* |
| 2017 | 21,216 | 7.1 | 11.4 |
| 2018 | 22,460 | 6.9 | 11.3 |
| 2019 | 23,931 | 6.7 | 11.1 |
| 2020 | 26,505 | 7.1 | 12.7 |
| 2021 | 28,632 | 6.7 | 12.2 |
| GNI* series used in this table taken from Annual National Accounts 2021 | |||
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Statistician's Comment
The Central Statistics Office (CSO) has today (22 June 2023) released System of Health Accounts 2021.
Commenting on the release, Elaine O'Sullivan, Statistician, said: “The total spend on healthcare was €28.6 billion in 2021. As expected, COVID-19 continued to have an impact on healthcare expenditure in 2021. However, when comparing 2021 with 2020 we can see a return to previous levels of spending by Private Health Insurance companies with the resumption of normal healthcare activities. While Government spending on healthcare increased by 7% in 2021, the spending by Private Health Insurance companies rose by 16%. However, this double-digit increase reflects the low-base in 2020 resulting from the focus of healthcare activities on COVID-19.
As a result of the growth in Ireland’s Gross Domestic Product (GDP), healthcare as a percentage of GDP is below the OECD average. In 2021, health expenditure in Ireland represented 6.7% of GDP compared with the OECD average of 10.4%. However, a comparison using modified Gross National Income (GNI*), a measure which eliminates globalisation effects, puts Ireland at 12.2%.
Most spending on healthcare occurs within the hospital setting with almost €11 billion spent in 2021. This is 7% more than was spent in 2020.
Spending on preventive care showed continued growth with an annual increase of 66%. This large rise can be attributed to the €686 million spent on COVID-19 testing and tracing along with €508 million spent on COVID-19 vaccinations.
Preliminary results for 2022 show a €2 billion growth in spending or 7% more than in 2021.”