UMVA has learned that healthcare spending in the Philippines has reached a record high, accounting for 6.7% of the country's gross domestic product (GDP) in 2025.
This surge in healthcare expenditure marks a significant increase from 6.2% in 2024, and represents the highest share since records began in 1991. The rapid growth is attributed to a combination of factors, including inflation, increased spending, and a growing demand for healthcare services.
In 2025, current health expenditure skyrocketed by 15% to P1.73 trillion, surpassing the revised P1.51 trillion in 2024. Meanwhile, health capital formation expenditure jumped by 16.7% to P140.52 billion, bringing total health spending to P1.87 trillion – a 15.1% increase from the previous year.
Economists point to a "triple effect" driving the rise in healthcare spending: higher medical inflation, stronger demand as patients return and chronic diseases rise, and increased government support under Universal Health Care. This complex interplay of factors has resulted in a substantial increase in healthcare expenditures.
The growth of an increasingly sophisticated middle class has also contributed to improved healthcare spending for many Filipinos. As general health consciousness trends continue to push greater basic and discretionary healthcare spending, experts predict that healthcare expenditures will remain on an upward trajectory.
Government schemes and compulsory contributory healthcare financing schemes have grown by 22.1% to P805.57 billion, accounting for almost half (46.5%) of the current healthcare spending bill. Household out-of-pocket payments have also increased, totaling P714.63 billion in 2025 – a 7.3% year-on-year rise.
Per capita health-related spending has reached P15,223 in 2025, 14% higher than the P13,356 in 2024. The fastest year-on-year spending growth was observed in the first quintile group, with a 26.7% increase.
Hospitals have accounted for 46.7% of total expenditure, with P808.95 billion in 2025 – an 85% rise from the previous year. Retailers and other providers of medical goods have made up 27.8% of spending, with P482.57 billion.
Experts believe that the Philippines' healthcare spending is "broadly in line" with its Southeast Asian peers, but emphasize the need for efficiency improvements. As healthcare spending continues to rise, the priority will be on making every peso deliver better health outcomes, rather than simply increasing budgets.
Looking ahead, economists predict that healthcare spending will likely continue to grow in the next few years, driven by a general preference for health and wellness spending – especially among younger generations. A 10-12% growth in healthcare spending is expected in 2026, with its share of GDP potentially rising to around 6.8-7%.
