Health spending to hit $331B in 2022, COVID costs on decline


Canada is predicted to hit $331 billion in well being spending in 2022, in accordance to new estimates, however the steep improve in spending attributable to the pandemic appears to be sliding down — regardless of COVID-19 hospitalization charges exceeding these of 2021.

The Canadian Institute for Health Information (CIHI) launched their annual National Health Expenditure Trends report on Thursday, laying out their estimates for the way a lot cash goes towards well being in Canada.

In 2022, Canada will spend round $8,653 on common per Canadian, in accordance to CIHI, with whole well being expenditure representing 12.2 per cent of Canada’s gross home product (GDP), down from the excessive of 13.8 per cent in 2020.

Before the pandemic, well being spending was rising steadily by round 4 per cent per yr from 2015 to 2019. This development fee jumped up to a 13 per cent improve in funding in 2020, largely attributed to the pandemic, adopted by one other seven per cent improve in well being spending in 2021.

But after two years of COVID-19, this development seems to have dropped off considerably. According to CIHI’s estimates, whole well being expenditure is predicted to rise by solely 0.8 per cent in 2022.

“Despite a levelling off in 2022, growth in health care spending in Canada continues to be driven by ongoing factors such as an aging population, population growth and use of health services,” Ann Chapman, director of Spending and Primary Care at CIHI, mentioned in a press launch. “The strain on budgets because of the pandemic is putting pressure on health system recovery efforts.”

Health spending usually grows alongside the economic system, generally outstripping it. COVID-19 spurred an unprecedented improve in well being spending in 2020.

CIHI is a not-for-profit group that works with federal, provincial and territorial companions to combination and current knowledge on well being care administration, analysis and coverage inside Canada.

The expenditure report consists of estimates for 2022 and 2021, in addition to finalized figures for well being care spending in 2020.


When taking a look at whole well being expenditure, what companies does that giant sum of $331 billion signify?

Hospitals, physicians and medicines are the biggest classes of spending, representing greater than 50 per cent of whole well being spending in 2022.

Nearly one quarter of all well being spending in 2022 went into our hospitals, whereas physicians and medicines each signify 13.6 per cent every.

This means hospitals value Canadians round $2,084 per particular person in 2022.

“Growth in hospital spending is expected to accelerate due to efforts to clear surgical and other backlogs,” the discharge said.

In 2020, spending on physicians dipped by 3.6 per cent, due to many types of care being deferred out of concern of sufferers contracting COVID-19.

This class rebounding in 2021 and 2022, now reaching the second-largest share of well being spending.

Spending on medicine is projected to improve 5.4 per cent in 2022, because the variety of claims for specialty medicine continues to develop, together with increased costs per particular person for remedy addressing persistent points.

CIHI additionally checked out who’s paying for the companies Canadians are receiving. The public sector is projected to account for 72 per cent of whole well being expenditures in 2022, with the personal sector accounting for 28 per cent.

Around 14 per cent of all well being spending in 2022 can be out-of-pocket costs.

From 2000-2019, the general public vs. personal break up has remained pretty regular at 70 per cent public, 30 per cent personal.


A brand new spending class was launched in 2021 referred to as COVID-19 Response Funding, which encompasses government-budgeted funding associated to COVID-19 remedy, contact tracing, vaccinations, medical items and different associated bills.

In 2021, in accordance to CIHI’s estimates, this class made up 9.9. per cent of all well being care spending in Canada, however it’s projected to make up solely 4.4 per cent of whole well being spending in 2022.

Federal, provincial and regional governments spent $29.3 billion in Canada on the pandemic in 2020, then round $32.5 billion in 2021, in accordance to CIHI.

But pandemic-related spending was slashed in half for 2022, with governments solely spending round $14.5 billion.

COVID-19 funding per-person in 2022 can be anticipated to have dropped sharply to almost half of what it was in 2020, going from $770 per particular person to $376.

This comes regardless of COVID-19 fatalities almost doubling in whole since October of final yr.

According to the federal authorities, when taking a look at weekly numbers of COVID-19 instances, the highest ten weeks with the biggest variety of hospitalizations all occurred this yr, not in 2020 or 2021.

And though hospitalizations have fallen because the Omicron surge in January 2022, which precipitated the biggest spike in instances in Canada throughout your complete pandemic, Canada remains to be seeing extra hospitalizations this fall than we did final yr.

According to knowledge from the Public Health Agency of Canada, Canadian hospitals noticed a median of about 4,700 hospitalizations a day due to COVID-19 between Sept. 15 and Oct. 15, 2022,. During the identical interval final yr, the common was simply 2,000 per day.

According to CIHI’s breakdown, the biggest chunk of cash allotted to COVID-19 Response Funding went to COVID-19 remedy costs in 2022, at 34 per cent. Around 20 per cent was put towards vaccinations.


Health spending varies dramatically as a “per-person” determine relying on the place you might be in Canada due to various elements together with salaries for health-care professionals, the companies being provided and the way distant a inhabitants is. The territories have the best per-person value for well being, partially due to residents requiring to be flown elsewhere for specialty companies.

This is the projected breakdown for 2022, in accordance to CIHI.

Ontario: $8,213 per particular person; 0.3 per cent improve

Quebec: $8,701 per particular person; 1.8 per cent lower

Manitoba: $8,417 per particular person; 1.0 per cent lower

Saskatchewan: $8,954 per particular person; 0.03 per cent lower

Alberta: $8,545 per particular person; 3.5 per cent lower

British Columbia: $8,790 per particular person; 2.4 per cent improve

Newfoundland and Labrador: $9,894 per particular person; 1.5 per cent improve

Prince Edward Island: $8,531 per particular person; 2.3 per cent improve

Nova Scotia: $9,536 per particular person; 5.0 per cent improve

New Brunswick: $8,010 per particular person; 0.9 per cent improve

Yukon: $15,884 per particular person; 1.2 per cent improve

Northwest Territories: $21,946 per particular person; 2.3 per cent lower

Nunavut: $21,978 per particular person; 8.3 per cent lower

Compared to different international locations, Canada has one of many increased per-person spending ranges on well being care. Out of 38 international locations, Canada’s per capita spending in 2020 (the latest yr which comparable knowledge is offered for) was among the many highest, beneath Germany and the Netherlands, however above Sweden and Australia.


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