Healthcare Spending and GDP
Health care’s share of the Gross Domestic Product (GDP) has always waxed and waned. This reflects different rates of spending and different periods of economic growth and slowdown. To illustrate, consider the share of GDP health care has comprised over the relatively recent past. For the duration of the 1980’s, health spending remained stable at around 8% of GDP. When the economy fell in 1990, however, health spending as a share GDP rose to 10% by 1992. In an attempt to save money in the struggling economy of the time, governments greatly reduced health spending in 1992 for five years, and health costs dropped to less than 9% of GDP. Canadians became alarmed about problems in the health care system which resulted in political pressure to increase funding starting in 1997.
Note: CIHI data gets updated on a regular basis. For the latest available information please visit their website (www.cihi.ca) or contact their media team at firstname.lastname@example.org.
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Restoring the purpose of the Canada Health Transfer
The new Parliamentary Budget Officer, Jean-Denis Frechette recently announced that Ottawa’s reform of the Canada Health Transfer (CHT) and spending cuts make federal finances sustainable for the long-term — but possibly at the expense of the provinces. Capping the CHT to the rate of economic growth, it appears, will make provincial finances less sustainable.
Trouble ahead for health costs: Doctors working less, making more
Physicians are the second largest component of provincial government health spending in Canada, averaging about 20 percent of overall healthcare budgets – and constituting one of the fastest growing public health sector costs of recent years.
Why New Brunswick has to rethink pharmacare
New Brunswick is the only province that does not ensure that all citizens are insured, at a minimum, against catastrophic prescription drug costs. For this, the government has received a considerable amount of flack.
Moving Ontario hospitals into the 21st Century
When it comes to the way we fund our hospitals, Ontario is only now moving beyond the 8-track era. The government is modifying its outdated payment systems to try and change the same old tune that has played for decades: long wait lists, bed blockers and cancelled surgeries.