Health Spending Efficiency in Portugal: Drivers, Challenges and Reform Priorities

Portugal’s health system is facing increasing spending pressures driven by population aging, constraints in the availability and deployment of health workers, and rising input costs, while access bottlenecks persist. Although health spending levels are broadly comparable to those of peer countries, recent spending growth (particularly in personnel, pharmaceuticals, and outsourced services) has not consistently translated into sustained improvements in access or in operational system performance. This paper analyzes the drivers of health spending growth in Portugal and the scope for efficiency gains, focusing on spending composition, input costs, and institutional and budgetary factors that affect how resources are allocated and used in the health sector.