In this article, we will be taking a look at the 15 healthiest countries in Europe. You can also skip our detailed analysis on the health market and directly head to the 5 Healthiest Countries in Europe.

Global Healthcare Market Outlook: Growth Projections and Challenges Through 2040

The market for healthcare services was estimated to be worth $7.975 trillion in 2023, up from $7.5 trillion in 2022. Through 2027, it is projected to increase at a compound annual growth rate (CAGR) of 6.3%, or $9.8 trillion. Hospitals, digital health, and healthcare services are just a few segments that make up the global healthcare market. From 2024 to 2029, the hospital market alone is expected to increase by 4.18% yearly, reaching a market volume of $5.19 trillion by that time.

Talking about healthcare, the hospital market in Europe is projected to grow at a compound annual growth rate (CAGR) of 3.68% from 2024 to 2029, reaching a market volume of USD 1.15 trillion by 2029. The digital health market in Europe was valued at USD 66.2 billion in 2023 and is expected to grow at a CAGR of 22.3% from 2024 to 2030. The digital health market’s expansion is supported by increasing smartphone penetration and improved internet connectivity, with 87% of mobile connections in Europe expected to be powered by 5G technology by 2030. By 2040, a higher proportion of healthcare funds is expected to target health promotion, illness prevention, and health restoration, potentially reducing healthcare spending by nearly €250 billion in 2030 and close to €595 billion by 2040.

Global healthcare is severely impacted by inflation, especially in the US. According to the Bureau of Labor Statistics, from 2000 and June 2023, healthcare prices increased by 114.3%, compared to an overall increase in goods and services of 80.8%. The COVID-19 epidemic increases the cost of medical care. As the world approaches endemic, COVID-19 continues to be a substantial cost. According to McKinsey, the US will need to spend an additional $200 billion a year on COVID-19 prevention and treatment. Revenue from healthcare in the US was $1.27 trillion in 2020, however, the COVID-19 epidemic caused a major decline in that amount. It reached $808 billion by 2021, of which 65% came from patient care. The sector is worth $12 trillion worldwide and is still expanding. Between 2020 and 2030, there will be a minimum 16% rise in healthcare employment in the US.

Key Players in Healthcare: Innovations and Financial Performance in 2024

Several key players like Boston Scientific Corporation (NYSE:BSX), Teladoc Health, Inc. (NYSE:TDOC) and Abbvie Inc., among others, stand out for their contributions to healthcare. For example, Boston Scientific Corporation (NYSE:BSX) is known for its innovative medical solutions that aim to improve patient health worldwide. The company has a workforce of 48,000 employees worldwide and operates in 140 countries. It invests significantly in research and development, with $1.4 billion allocated to R&D efforts. Boston Scientific Corporation (NYSE:BSX) boasts a portfolio of over 15,000 products, treating more than 37 million patients each year. The company reported net sales of $4.120 billion in Q2 2024, marking a 14.5% increase on a reported basis and a 14.7% increase on an organic basis compared to the same period last year. The company achieved a GAAP net income of $324 million in Q2, or $0.22 per share, and an adjusted EPS of $0.62, surpassing analyst expectations of $0.58 per share. In Q2, Boston Scientific Corporation (NYSE:BSX) received approval in China for the FARAPULSE Pulsed Field Ablation System and launched the AGENT Drug-Coated Balloon in the U.S. and received approval in China. Apart from that, the company also announced an agreement to acquire Silk Road Medical.

Similarly, Teladoc Health, Inc. (NYSE:TDOC) is a prominent multinational telemedicine and virtual healthcare company headquartered in the United States. Teladoc Health’s platform is utilized by over 12,000 clients, including over 50% of Fortune 500 companies, and serves more than 51.5 million members globally. Teladoc Health, Inc. (NYSE:TDOC) reported revenue of $642.4 million in Q2 2024, which is within the management’s guidance range but represents a 2% decrease year-over-year. The adjusted EBITDA in Q2 was $89.5 million, exceeding expectations and marking a 24% increase year-over-year, with a margin of 13.9% and the net loss per share was $4.92, significantly impacted by a non-cash goodwill impairment charge of $4.64 per share, primarily related to the BetterHelp segment.

READ ALSO: 25 Countries With Limited Access To Healthcare and 20 Countries That Spend the Most on Healthcare.

Our Methodology

For our list, we looked at two indexes: the GHS index of 2021 and the health pillar of Legatum Prosperity index of 2023. The 2021 Global Health Security (GHS) Index assesses 195 countries’ preparedness for epidemics and pandemics across six categories. The global average score is 38.9, indicating weak international readiness despite COVID-19 efforts. Similarly, The Health pillar of the 2023 Legatum Prosperity Index assesses health outcomes, systems, risk factors, and mortality rates, highlighting the importance of physical and mental health and access to effective healthcare services for individual and national prosperity. Hence, we averaged the scores of GHS, and the health pillar’s from Legatum index and the final rankings in our list were adjusted according to the average we obtained of these scores.

At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Here is our list of the 15 healthiest countries in Europe.

15. Austria 

Insider Monkey Score: 14.5 

Austria’s health expenditure is notably high which reflects its commitment to healthcare. Austria spent €49.9 billion on healthcare in 2022, up 1.3% from 2021 and accounting for 11.2% of GDP. An increase of 0.5% to €38.7 billion came from the public sector. Spending on healthcare increased to €52.28 billion in 2023, a 4.8% increase, with the public sector accounting for 77.1% of the total, a 0.4% decrease from 2022. The average life expectancy in Austria is about 82 years, which is higher than the OECD average of 81 years. Women have a life expectancy of 84 years, while men average 80 years. Approximately 71% of Austrians report being in good health, surpassing the OECD average of 68%. Austria also has a well-trained healthcare workforce, with a ratio of about 5.1 physicians per 1,000 inhabitants.

14. France 

Insider Monkey Score: 13.5

In 2023, France allocated 12.1% of its GDP to healthcare. The country spent nearly €1.15 billion on State Medical Aid. Additional health insurance costs, including COVID-19 expenses, fell from €17.4 billion in 2021 to €11.7 billion in 2022. Out-of-pocket health expenses were 8.8%, with private complementary health insurance covering about 13% of costs in 2020.

13. Malta 

Insider Monkey Score: 12.5

Malta is recognized as one of the healthiest countries globally, ranking twelfth on our list. Malta has a healthy life expectancy of approximately 81.7 years, which is among the highest in the world. The annual cost of healthcare in Malta for an elderly couple in 2023 was €598.12. Hospital services accounted for €563.2 million, or 58.3% of healthcare spending in 2022. Measures to improve living conditions for those with social needs, such as those with chronic and mental health disorders, are included in the budget for 2023.

12. Belgium 

Insider Monkey Score: 11.5

The average life expectancy in Belgium is around 82 years, which is slightly above the EU average, and approximately 70% of Belgians report being in good health. The budget for Belgium’s general hospitals was €9.94 billion in 2023 which is a 34% increase from 2019. Belgium’s health spending per person, which accounted for 11% of GDP in 2021, was among the top 10 in the EU. Public spending accounted for 77.6% of the total, with optional health insurance and out-of-pocket expenses comprising 4.5% and 17.9%, respectively.

11. Italy 

Insider Monkey Score: 10.5

Italy stands eleventh among the healthiest countries in Europe with a score of 86.20. The country’s life expectancy is approximately 82.8 years and this longevity is attributed to the Mediterranean diet, which is rich in fruits, vegetables, whole grains, fish, and healthy fats like olive oil, contributing to lower rates of heart disease and other chronic conditions. The entire amount spent by Italian households on health care in 2023 was €66 billion, of which €41 billion came from private spending (35% on products and 65% on services), and €25 billion went toward long-term aged care. In contrast, the Italian National Health Fund (NHF) has a budget of €130 billion. Access to clean water and a generally high quality of life also contribute to Italy’s health status.

10. Denmark  

Insider Monkey Score: 9.5

Denmark boasts a universal healthcare system that is funded primarily through taxation, ensuring that all citizens have access to necessary medical services without direct costs at the point of care. The average life expectancy in Denmark is approximately 81 years which is above the EU average. Denmark spent 262.9 billion DKK, or more than $7,000 per person, on healthcare in 2023—roughly 10% of GDP. The majority of this money comes from government health insurance (83.52%), with the remaining amounts coming from out-of-pocket contributions (13.84%), non-profit organizations (0.12%), and health insurance schemes (2.52%).

9. Ireland 

Insider Monkey Score: 9

Ireland is one of the healthiest countries in Europe. In 2022, Ireland’s healthcare expenditure was €30.9 billion, up 8.2% from 2021. This spending accounted for 11% of the country’s GNI*, surpassing the OECD average of 9% of GDP. Government funding covered 77% of the costs, with private health insurance covering 12%. About 80% of the population reports being in good health, which is the highest in the EU. Approximately 37% of adults engage in at least 150 minutes of physical activity per week, surpassing the EU average of 33%. Recent reports indicate a 5% reduction in obesity rates over the past four years. Programs like Healthy Ireland and the Obesity Policy and Action Plan demonstrate a commitment to improving health outcomes through community engagement and lifestyle changes.

8. Finland 

Insider Monkey Score: 8.5

The Finnish health market is characterized by a strong public healthcare system, which is funded through taxation. Finland has one of the lowest smoking rates in Europe, with less than 10% of the population identified as smokers. In November 2023, Finland’s Parliament raised the annual cap on out-of-pocket medicine costs to €626.94 for 2024, up from €592.16 in 2022 and 2023. The Finnish population is notably active, with only 16% classified as insufficiently active according to WHO standards. The country boasts a well-developed healthcare infrastructure, with approximately 3.5 doctors per 1,000 inhabitants.

7. Germany 

Insider Monkey Score: 7.5

Germany is considered to have one of the largest and most advanced healthcare systems in the world, characterized by a mix of public and private health insurance. Approximately 90% of the population is covered by statutory health insurance. According to projections from both domestic and foreign sources, Germany’s private health spending for 2023 is projected to be over €41 billion, with roughly 65% going toward services and 35% going toward commodities, according to Cergas. The average life expectancy in Germany is around 81 years.

6. Luxembourg 

Insider Monkey Score: 6.5

Luxembourg is recognized as one of the healthiest countries in Europe with a high health score of 87.09 and a life expectancy of 82.7 years. In 2023, Luxembourg had one of the highest per capita healthcare spending rates in the EU at €4,182, though its health expenditure as a percentage of GDP was low at 5.7%. Public expenditure was 86%, the second highest in the EU, while out-of-pocket spending was 9%, among the lowest. Complementary voluntary health insurance covered 3.9%. Luxembourg had 4.0 hospital beds per 1,000 people, with 573 day hospital beds, and 15 medical imaging devices, including 12 MRIs and 7 mammography machines.

5. Netherlands 

Insider Monkey Score: 5.5

The Netherlands is often recognized as one of the healthiest countries in Europe due to its robust healthcare system, high quality of life, and significant health-related expenditures. As of June 2023, the Netherlands was projected to spend about €51.5 billion on healthcare, with over half allocated to specialized medical care. The government also planned to spend nearly €7.6 billion on primary care, up from 2022. The life expectancy stands at 81.46 years.

4. Switzerland 

Insider Monkey Score: 4.5

Switzerland boasts one of the highest life expectancies in the world, at 84 years, and has the third-lowest obesity rate (12%) in Europe. In 2023, Switzerland’s healthcare spending is projected to be CHF 92 billion, a 4.1% increase from 2022, representing 11.5% of GDP. The KOF Swiss Economic Institute expects spending to rise to CHF 95.3 billion in 2024 and CHF 98.4 billion in 2025. In 2023, Switzerland’s compulsory health insurance costs also rose by 4.6% to CHF 4,513 per person. This increase is driven by a 5.5% rise in medicine costs, higher hospital and doctor bills due to a new tariff structure, and increased outpatient treatments.

3. Sweden 

Insider Monkey Score: 3.5

Sweden stands third among the healthiest countries in Europe with a health score of 87.84. Sweden has the second-highest life expectancy in Europe, at 83 years. In 2022, Sweden’s healthcare expenditure was 10.7% of GDP, consistent with other high-income European countries. About 86% of this spending was publicly funded, mainly through regional and municipal taxes, with the national government contributing 2.5% in 2021. The remaining costs, primarily for dental care and pharmaceuticals, were covered out-of-pocket by households.

2. Iceland 

Insider Monkey Score: 2

Iceland’s healthcare system is predominantly publicly funded and offers universal coverage to its citizens. Iceland has a life expectancy of 83.12 years, which is among the highest globally. There is a strong culture of physical activity in the country, with many people engaging in outdoor activities like hiking and skiing and only 7.5% of the Icelandic population are smokers, which is the second lowest percentage in Europe. In 2021, Iceland’s healthcare spending per capita was $6,636, a 17.72% increase from 2020, but dropped to $0 in 2022. In 2019, total health expenditure was 269 billion ISK, or 8.9% of GDP, slightly above the OECD average. Public spending accounted for 7.4% of GDP, and private spending 1.5%. Despite recent trends, Iceland’s per capita spending has been similar to the EU average but represents a smaller share of GDP.

1. Norway 

Insider Monkey Score: 1

Norway tops the list for being the healthiest country in Europe. The country has a high life expectancy of approximately 83 years, which is indicative of the overall health and quality of life in the country. Norwegians typically follow a diet rich in Omega-3 fatty acids, which is beneficial for heart health. Norway has a lower-than-average obesity rate of 23%, which is relatively low compared to other European countries, and the country boasts a high ratio of healthcare professionals per capita, with 4.9 doctors and 18.3 nurses and midwives per 1,000 people. In 2022, Norway spent 8.1% of GDP on healthcare, totaling $47 billion or $8,637 per person. This is below the OECD average of 9.6% but remains among the highest globally. Norway’s spending peaked at 11.2% of GDP in 2020 before declining.

At Insider Monkey, we delve into a variety of topics, ranging from passive income ideas to business aspects; however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure. None: This article is originally published on Insider Monkey.