Canada faces $160B health-care bill in 2007: report

Canada's health-care spending will reach $160.1 billion this year, up from $150.3 billion in 2006, says a new report.

The Canadian Institute for Health Information pegs the increase at 6.6 per cent faster growth than the economy.

The group's annual spending report says health-care expenditures as a share of Canada's gross domestic product have risen slowly but steadily over five years and are expected to reach 10.6 per cent in 2007.

Graham Scott, chairman of the institute's board of directors, says it's the 11th straight year in which health-care spending is expected to outpace inflation and population growth.

Scott says that's due, in part, to new public investments in health services brought about by agreements between Ottawa and the provinces.

Health-care spending per Canadian is forecast to reach $4,867, up from about $4,606 in 2006 and $4,373 in 2005.

The group says the ratio of public-sector to private-sector spending on health care will remain relatively stable for the 11th straight year.

Public-sector spending is forecast to reach $113 billion in 2007, or 70.6 per cent of total health-care spending, while private-sector spending including privately insured and out-of-pocket expenses is projected to reach $47.1 billion this year, a 29.4 per cent share.