Shyam Bishen, the Head of the Centre for Health and Healthcare at the WEF, indicated that funding shortages are already hindering efforts to enhance health system resilience and long-term capacity building.
He mentioned that the World Bank estimates a funding gap approaching $200 billion is necessary to establish basic yet resilient healthcare systems capable of addressing risks like climate change and future pandemics.
“We are far from that,” he stated, commenting on the current funding levels.
Bishen noted that the WEF is collaborating with the private sector to help close some of this gap, concentrating on digital health initiatives. He added that global healthcare expenditure has surged to about $10–12 trillion, representing at least 10% of world GDP, and is increasing at a pace significantly quicker than economic growth.
According to Bishen, approximately 20–25% of this spending is wasted due to misdiagnosis, excessive testing and medication, hospital inefficiencies, and administrative expenses.
“AI has the potential to minimize that wastage within the health system,” he remarked.
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He suggested that digital tools, including artificial intelligence (AI) and machine learning, could enhance efficiency and assist in cost control, even as governments face challenges in increasing public healthcare funding.
These are edited excerpts from the interview.
Q: It’s been a tough year, especially given the US’s withdrawal from numerous multilateral organizations, including those focused on healthcare outcomes. What impact have you observed from that thus far?
A: The global health system is currently under substantial pressure due to this funding situation. As you pointed out, we are noticing some decline in the overall systems and health initiatives that we were pursuing, particularly concerning resilience, in partnership with both the public and private sectors, as well as the World Health Organisation (WHO).
This funding shortfall is definitely affecting us, making it a struggle. The WEF is endeavoring to determine how we can address some of this funding gap needed to construct a robust and resilient health system.
Q: What is the current estimated gap?
A: According to the World Bank, the estimated shortfall is around $200 billion. This is the amount needed to develop a reasonably robust healthcare system that can withstand challenges like climate change or pandemics. We are nowhere near that. We are attempting to collaborate with the private sector to advance initiatives, particularly in digital health.
Of course, funding is always limited. There is a perpetual need for more resources dedicated to special programs, especially in the healthcare sector. Nevertheless, we have been discussing for some time how to better utilize digital technologies, particularly AI and machine learning, to enhance healthcare efficiency overall.
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The cost of healthcare is soaring annually. We’re looking at approximately $10 to $12 trillion, depending on different estimates, equating to at least 10% of global GDP, and this is increasing at a rate three times faster than GDP.
There is no feasible way to bridge this gap solely through public sector funding. It is impossible to achieve the growth needed from other sectors to meet the demands posed by healthcare expenditures.
Our goal is to explore how digital technologies can be leveraged to control costs and foster improved efficiencies.
Currently, examining the $10 to $12 trillion mentioned earlier, around 20 to 25% is deemed waste. This waste, totaling approximately $2.5 trillion annually, arises from issues such as misdiagnosis, unnecessary diagnostic procedures, and administrative inefficiencies.
AI could play a significant role in addressing these issues and reducing waste within the healthcare system. We are focusing on harnessing health data and AI to mitigate these inefficiencies. We believe digital health can significantly contribute to these areas.
For the full interview, watch the accompanying video
