Yes, in many cases health faucets are better for hygiene than toilet paper.
Water cleans more effectively than dry wiping, especially after bowel movements. It can remove residue that toilet paper may leave behind, which can reduce odor, irritation, and the chance of spreading bacteria to the skin. For people with hemorrhoids, sensitive skin, diarrhea, or limited mobility, a health faucet is often gentler and more comfortable.
That said, hygiene depends on proper use. A health faucet should be used with clean water and followed by drying with a clean towel or tissue if needed, because excess moisture can also cause irritation. The nozzle should be kept clean too, since a dirty fixture can become a source of contamination.
Toilet paper is convenient, portable, and widely available, but it mainly wipes rather than washes. It can be enough for quick cleaning, especially when water is not accessible, but it is generally less thorough than rinsing.
So, if the question is strictly about cleanliness and skin comfort, health faucets usually have the advantage. If the question is about convenience, portability, and speed, toilet paper may be easier. The best option for many people is water cleaning first, then gentle drying.