Health care to cost $148B in 2006: report

Canadians will spend an estimated $148 billion for health care by the end of 2006, new projections from the Canadian Institute for Health Information show an increase of $8 billion over last year.

But while health-care spending continues togrow in Canada, the pace of that growth appears to be slowing, according to CIHI's annual report on health care spending trends released Tuesday.

The increase this year over 2005 is about 5.8 per cent. Spending grew about 6.4 per centfrom 2004 to 2005, and averaged a 7.8 per cent yearly increase from 2000 to 2004.

"For the 10th consecutive year, health care spending continues to outpace inflation and population growth," said Graham Scott, CIHI chairman, in a release.

Scott suggested the period of growth could be attributed in part to new public money flowing into heath care from agreements between the federal and provincial governments, but noted spending "now appears to be growing at a slightly slower rate."

However, spending in the private sector is growing faster in 2006 thanit has forthree years, the report suggests, increasing by6.1 per cent to $44 billion. The $104 billion being spent in the public sphere is an increase of 5.3 per cent.

Per capita health care spending is expected to reach $4,548 a 4.9 per cent increase over 2005.

Health care spending was highest for infants and seniors, consistent with a trend in which "the beginning and final years of life are the times when people use health care the most," CIHI president and CEO Glenda Yeates said.

CIHI's estimates also show that health-care spending as a share of Canada's gross domestic product is at its highest level in 31 years, reaching 10.3 per cent. It was about10.2 per cent in 2005 and 2004.

Consistent with previous years, the largest portion of the money is being spent inhospitals an estimated 29.8 per cent in 2006 while drugs continue to make up the second-largest component of health-care spending at 17 per cent.

CIHI's National Health Expenditure Trends report includes figures dating back to 1975.

Quebec lags behind other provinces

While health spending continues to grow nationally, Quebec continues to fall behind other provinces in the amount of money it spends per capita.

The CIHI report found Quebec spent $3,976 per person, in contrast to the national average of $4,109.

The gap can be explained in partby how much doctors are paid, said Glenda Yeates, CIHI's CEO.

"We know, for example, that salaries for a number of health professionals are a bit lower in Quebec. So it may reflect some of the different salary levels. It may [also] reflect some of the different organizational structures that Quebec has put in place."