Close X
Sunday, November 24, 2024
ADVT 
National

Growth in health spending tripled in 2020: CIHI

Darpan News Desk The Canadian Press, 04 Nov, 2021 10:12 AM
  • Growth in health spending tripled in 2020: CIHI

OTTAWA - A spike in health-care spending during the COVID-19 pandemic could lead to some serious financial challenges for provinces as they work to rebuild their health systems in the aftermath, according to the Canadian Institute for Health Information.

The spending surge is expected to reach a record $308 billion in 2021, say newly released projections from CIHI.

That is roughly $8,019 per Canadian.

"COVID-19 resulted in the single biggest increase in health spending we have ever seen in this country," said CIHI president David O’Toole in a news release.

Health spending is projected to have increased 12.8 per cent between 2019 and 2020. That's more than triple the average annual growth rate seen from 2015 to 2019, which was approximately four per cent per year.

Spending is estimated to have increased another 2.2 per cent between 2020 and 2021.

The agency said its estimates will be updated as final spending amounts are tabulated, and may be less accurate than normal given the nature of emergency funds spent during the pandemic.

Still, the numbers add up to a troubling future as Canada works to recover from the pandemic and get health systems back on their feet.

"We know that in times of fiscal restraint we have less to spend on health care, so there'll be some decisions in the future. It's obviously a finite pot of money," said Brent Diverty, vice-president of data strategies and statistics for CIHI.

Historically, increases in health spending have been in step, or slightly greater, than increases in economic growth. When provinces hit hard times, they usually spend less on health care.

But in 2020, the spike in health spending to scale up system capacity, testing and other pandemic responses was paired with a serious contraction in the economic health of the country. The GDP dropped 4.6 per cent that year, according to the latest federal budget.

Now, as the fourth wave of the pandemic ebbs and health systems turn to the surgical and primary-care backlogs left in its wake, they'll have to figure out how to handle the extra load while carrying mounting health-spending deficits.

There may be other pandemic developments, however, like the rise in virtual care, that could offset some of the costs moving forward.

Some innovations are "in fact making the system more sustainable or affordable," Diverty said.

Even before the pandemic, health spending had been rising steadily for decades.

The Liberal government committed an additional $6 billion to help pay for health-system backlogs exacerbated by the pandemic in the last federal election, though the specific requirements for that funding must still be negotiated with provinces and territories.

The party promised another $3.2 billion to hire family doctors, nurses and nurse practitioners.

Provinces and territories have asked to meet with the prime minister before the speech from the throne expected later this month.

The premiers have asked the federal government to take on a larger share of health spending moving forward.

 

MORE National ARTICLES

Quebec schools worry kids are copying 'Squid Game'

Quebec schools worry kids are copying 'Squid Game'
Several school boards in the province have recently issued statements warning parents about students imitating the games on playgrounds. The South Korean series features 456 desperate, indebted adults fighting each other to the death for a chance to win a prize worth roughly $48 million.

Quebec schools worry kids are copying 'Squid Game'

PMO says it will do all it can on school records

PMO says it will do all it can on school records
The PMO says in a written statement that it has provided more than four million documents to the centre, and if all the records haven't been supplied, "we will do everything we can" to make sure all the parties of the Indian Residential School Settlement Agreement have them.

PMO says it will do all it can on school records

B.C. premier questions COVID-19 travel rules

B.C. premier questions COVID-19 travel rules
John Horgan says he finds Ottawa's testing requirement counter to the whole point of staying safe, saying he could get a test in Vancouver, travel to the United States and come back within 72 hours using the same tes

B.C. premier questions COVID-19 travel rules

Vancouver Police appeal for witnesses to man seen with a gun downtown

Vancouver Police appeal for witnesses to man seen with a gun downtown
On October 19 at around 10:15 a.m., a man was seen by a witness walking north on Granville Street by Nordstrom holding and pointing what appears to be a gun. He then appears to engage with a person out of camera view, and makes cutting motions across his neck. 

Vancouver Police appeal for witnesses to man seen with a gun downtown

715 COVID19 cases for Thursday

715 COVID19 cases for Thursday
There are 4,965 active cases of COVID-19 in the province and 192,819 people who tested positive have recovered. Of the active cases, 377 individuals are in hospital and 136 are in intensive care

715 COVID19 cases for Thursday

Pedestrian killed in collision on Highway 1: Abbotsford Police

Pedestrian killed in collision on Highway 1: Abbotsford Police
Upon arrival, emergency service workers located a pedestrian in the westbound lanes who a semi-truck had struck. The pedestrian was transported to the hospital by BC EHS.  Sadly, they have succumbed to their injuries. The AbbyPD are currently confirming the identity of the deceased and have no further details at this time.

Pedestrian killed in collision on Highway 1: Abbotsford Police