Where is the money going?
CMAJ 1997;157:492
© 1997 Canadian Medical Association
According to documents recently released by Health Canada, Canadians spent $75.2 billion on health in 1996, which equates to 9.5% of the gross domestic product (GDP). As a proportion of GDP, this puts us in fifth place internationally, behind the US, France, Austria and Germany.
The physician component of health spending decreased slightly again in 1996, to 14.4% of the total, while the proportion spent on drugs continued to increase from its 1975 level of 10.2%. Proportionately, spending on drugs now matches payments to physicians. Hospital-sector spending has dropped steadily. It represented 44% of total health expenditures in 1975, but an estimated 34.2% in 1996.
Overall, per capita costs held steady at around $2500. Once adjusted for inflation, however, they showed a decrease for the fourth consecutive year. This is a direct result of a decrease in public-sector spending, for which unadjusted per capita costs have fallen since 1993. Inflation-adjusted (real) per capita drug expenditures have increased almost 50% in just over a decade, while the equivalent costs for physicians increased about 16%.
Public-sector expenditures now account for just less than 70% of total health costs, with private spending making up the difference. This continues the gradual decline in the amount of public spending, which stood at 76.4% of the total in 1975.
Per capita health expenditures in Canada
Dépenses consacrées à la santé par habitant au Canada
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Distribution of national health expenditures by category, Canada, 1996
Répartition des dépenses nationales de la santé par catégorie au Canada, 1996
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This column was written by Lynda Buske, chief, physician resources information planning, CMA. Readers may send potential research topics to Patrick Sullivan (sullip@cma.ca; 613 731-8610 or 800 663-7336, ext. 2126; fax 613 523-0937).
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