Modest growth in health spending in Canada

2023-11-02 16:40:58

Health spending growth in Canada increased slightly in 2023, but is lower than before the pandemic, according to new data from the Canadian Institute for Health Information.


These expenses should reach 344 billion this year in Canada, or approximately $8,740 per person, indicates Thursday the 27e institute report on National Health Spending Trends.

The institute’s data includes money spent by the public and private sectors, but also amounts paid by individuals.

The $344 billion total projected for 2023 represents an increase of regarding $9 billion from last year, but is still well below the year-over-year growth seen before the COVID-19 pandemic.

Between 2015 and 2019, health spending in the country increased by an average of 4.3% per year. The pandemic led to a sharp increase of 13.2% in 2020, then an increase of 7.8% in 2021.

But in 2022, annual growth in health spending fell to 1.5% and it increased by a “small” 2.8% in 2023, said Christopher Kuchciak, health spending manager at CIHI.

Furthermore, health care spending varies considerably between provinces and territories, depending on the needs of the populations as well as population growth, noted Mr. Kuchciak.

Factors that influence spending include the number of elderly people and whether health care is provided in urban or rural areas, he explained.

Remote areas

Health care spending in 2023 thus amounts to approximately $8,785 per person in Quebec and $8,245 in Ontario, while it reaches $23,652 in Nunavut, the report indicates.

Spending growth in 2023 ranged from 0.4% in Quebec, 0.7% in Ontario and 3.9% in New Brunswick, but up to highs of 7.7% in Île-du. -Prince Edward and 9.8% in Nunavut. The Yukon experienced the only decline in growth in the country, of 0.3%.

Provincial and territorial governments pay approximately 65% ​​of health care costs, which also include federal transfers, recalled Mr. Kuchciak.

An additional 5% of public sector spending is assumed by the federal government in its areas of health care jurisdiction – particularly for Indigenous communities and the military – as well as by municipalities, for services such as local public health.

Private insurance companies cover regarding 12% of health care costs, while out-of-pocket medical costs – such as uninsured prescriptions – account for another 15%. About 2% of health care spending includes private donations to hospitals and even parking fees, Kuchciak said.

The quarter to hospitals

As for the recipients of these sums, hospitals receive approximately a quarter of the total health spending envelope, the report indicates; a share of around 14% goes to doctors.

Spending on hospitals and doctors continues to rise as attempts are made to reduce surgical waitlists and other delays that have emerged amid the pandemic, the report said.

Medicines represent approximately 14% of health spending. The rest of the envelope goes to other health services, including long-term care homes, dental care, vision care and vaccines.

The coming years will likely see further increases in health spending, Kuchciak said, due to both population growth and inflation, particularly for wages.

Health care is provided by people,” he recalled, emphasizing that many doctors and nurses are bound by contracts and agreements which will eventually have to be renegotiated.

“The current environment is characterized by modest growth, but the outlook is certainly favorable for higher growth in the future. »

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