If you spend more on healthcare, you do tend to get better quality outcomes. There isn't always a linear relationship, and the purchaser does matter. If the purchaser is unrelated to the consumer (translated, that's government and patient in a national health service) there is a risk of a disconnect. This is illustrated to a point with this great chart from a recent survey of European health systems. This seems to underline the idea that if you want more money spent on health, raising at least some of that through insurance makes sense - rather than having the state guess how much health cover you would like, through a kind of lowest common denominator national lottery. Link.