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Chronic Healthcare Spending Disease: A Macro Diagnosis and Prognosis

Author

Listed:
  • David A. Dodge

    (Bennett Jones LLP)

  • Richard Dion

    (Bennett Jones LLP)

Abstract

The amount Canadians spend on healthcare is set to rise rapidly over the next two decades and Canadians need to face up to tough choices to deal with this “spending disease.” The study examines the trajectory of total healthcare spending – public and private – in Canada and the policy choices Canadians must make in response. The authors estimate the extent to which healthcare spending is going to absorb a greater fraction of income than Canadians have experienced to date under two scenarios: a baseline scenario drawn from historical experience, and an optimistic scenario, which assumes an unprecedented improvement in the efficiency and effectiveness of the healthcare system and large improvement in potential economic growth. Canadians must choose some combination of: 1) a sharp reduction in public services, other than health care; 2) increased taxes to finance the public share of healthcare spending; 3) increased individual spending on healthcare services currently insured by provinces, through some form of co-payment or through delisting of services that are currently publicly financed; 4) or a degradation of publicly insured healthcare standards – longer queues, and services of poorer quality.

Suggested Citation

  • David A. Dodge & Richard Dion, 2011. "Chronic Healthcare Spending Disease: A Macro Diagnosis and Prognosis," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 327, April.
    • Handle: RePEc:cdh:commen:327
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    File URL: https://www.cdhowe.org/public-policy-research/chronic-healthcare-spending-disease-macro-diagnosis-and-prognosis
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    References listed on IDEAS

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    15. Alexandre Laurin & William B.P. Robson, 2011. "A Faster Track to Fiscal Balance: The 2011 Shadow Budget," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 320, February.
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    Cited by:

    1. Colin Busby & Åke Blomqvist, 2017. "The Paradox of Productivity, Technology, and Innovation in Canadian Healthcare," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 480, May.
    2. Law, Michael R. & Daw, Jamie R. & Cheng, Lucy & Morgan, Steven G., 2013. "Growth in private payments for health care by Canadian households," Health Policy, Elsevier, vol. 110(2), pages 141-146.
    3. Andrew Sharpe, 2011. "Is Ageing a Drag on Productivity Growth? A Review Article on Ageing, Health and Productivity: The Economics of Increased Life Expectancy," International Productivity Monitor, Centre for the Study of Living Standards, vol. 21, pages 82-94, Spring.
    4. Ake Blomqvist & Colin Busby & Don Husereau, 2013. "Capturing Value from Health Technologies in Lean Times," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 396, December.
    5. Grady, Patrick, 2012. "The parent and grandparent immigration program in Canada: costs and proposed changes," MPRA Paper 37289, University Library of Munich, Germany, revised 08 Mar 2012.
    6. Don Drummond & Evan Capeluck, 2015. "Long-term Fiscal and Economic Projections for Canada and the Provinces and Territories, 2014-2038," CSLS Research Reports 2015-08, Centre for the Study of Living Standards.
    7. William B.P. Robson, 2014. "Bending Canada's Healthcare Cost Curve: Watch Not What Governments Say, But What They Do," e-briefs 185, C.D. Howe Institute.
    8. Ake Blomqvist & Colin Busby, 2012. "Long-Term Care for the Elderly: Challenges and Policy Options," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 367, November.
    9. Don Drummond & Evan Capeluck, 2015. "The Role of Productivity in Long-Term Economic and Fiscal Projections for the Canadian Provinces and Territories, 2014-2038," International Productivity Monitor, Centre for the Study of Living Standards, vol. 29, pages 3-17, Fall.
    10. Ruolz Ariste & Livio Di Matteo, 2017. "Value for money: an evaluation of health spending in Canada," International Journal of Health Economics and Management, Springer, vol. 17(3), pages 289-310, September.
    11. John Richards, 2011. "Aboriginal Education in Quebec: A Benchmarking Exercise," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 328, April.

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    More about this item

    Keywords

    The Health Papers; healthcare spending; Canada;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • I00 - Health, Education, and Welfare - - General - - - General

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