The Number-Two Healthcare System in the World

While China is taking steps towards healthcare reform and bettering their medical system for the Chinese, there's one Asian nation that already has a successful healthcare system -- Taiwan.

Now, no healthcare system is perfect, but Taiwan's is definitely a solid step in the right direction. In fact, the World Health Organization actually ranks Taiwan as the number-two healthcare system in the world -- only behind Sweden -- based on healthcare quality and medical costs.

But what exactly makes Taiwan's healthcare system so successful and efficient? There are actually a few reasons…

Low Cost Structure: Structured much like Canada's healthcare system, Taiwan has a single-payer health insurance system that has been set up since 1995. What single-payer means is that the government reimburses hospitals, healthcare clinics and doctors for services rendered.

Sure, Taiwan citizens are required to pay a monthly health insurance premium -- which is adjusted for income -- but this fee usually averages less than $100 per month. And citizens only have to pay a small fee when they visit a hospital or health clinic -- similar to a co-pay in the U.S. and totaling between $4 and $10 per visit.

High-Quality Healthcare: What makes this type of system great is that hospitals and clinics -- whether private or public -- don't compete on prices. All healthcare costs are standardized, so health providers actually compete to acquire patients by offering the best services and high-quality medical treatment.

Low Administrative Costs: While healthcare professionals in Taiwan strive to provide the best medical treatment possible, they're actually paid very little in comparison to other medical professionals around the globe. In fact, Taiwanese nurses make only $12,000 per year and pharmacists earn an average income of about $15,000 per year.

Now, it's easy to discuss why these three main reasons have helped Taiwan's healthcare system work so well. But nothing beats firsthand experience and observations.

During one of my trips to Asia this year, my daughter was injured, and I needed to take her to an emergency room in Taiwan. Let me just say, I was thoroughly impressed. At one of the best hospitals in Taipei, we didn't have to sit in the waiting room for hours – my daughter quickly received the stitches necessary for her injury.

And on a follow-up visit a few days later, the treatment was once again fast, efficient and high quality. Plus, even though we were foreign visitors, the two emergency room visits cost less than $30. Needless to say, I was definitely impressed by the efficiency, low cost and value that Taiwan's healthcare system offers.